Your Partner in Real Estate Financing
You can do what you do best when you give us an opportunity to do what we do best!
That's teamwork!
We want to be on your team!
Special Offer:
The Mortgage Brokers You Can Trust
At Heritage Funding, we understand the unique financial needs of real estate investors with income-producing properties. As mortgage brokers, we specialize in securing funding solutions that help our clients achieve their investment goals.
We cater to a wide range of real estate professionals, including landlords, rehabbers, wholesalers, developers, real estate agents, and real estate investors. No matter the size or complexity of your investment venture, we have the knowledge and experience to help you secure the funding you need.
We cater to a wide range of real estate professionals, including landlords, rehabbers, wholesalers, developers, real estate agents, and real estate investors. No matter the size or complexity of your investment venture, we have the knowledge and experience to help you secure the funding you need.
Contact us for funding solutions.
Services
Loan Placing
Finding the right loan for your real estate investment is crucial for success. At Heritage Funding, we have the expertise to help you navigate the complexities of the lending landscape. We work with our network of lenders to find the ideal financial solution that aligns with your objectives.
Loan Processing
Processing a loan can be a time-consuming and cumbersome process. That's where we come in. As mortgage brokers, we handle all the paperwork and documentation required for loan applications. We work diligently to ensure your application is complete and accurate, avoiding potential delays or complications.
Loan Closing
The closing of a loan is the final step in securing your funding. Our team works with all parties, including lenders, attorneys, and title companies, to ensure a seamless closing experience.
Investor Funding Options
Fix and Flip Loan: A common scenario in hard money lending involves loans for residential property rehabilitation projects, often called Fix & Flip. These loans provide funds both for purchasing a property and for renovation work, to increase the property's value and sell it within 12 months. The loan amount typically does not exceed 70% of the after-repair value. Requests for 100% financing are rare and generally unavailable in most states. Most hard money lenders require borrowers to make a down payment of 10-20% to ensure borrower equity in the project, known as “skin in the game.” Not all hard money lenders offer loans for house flipping.
Purchase Bridge Loan: Some hard money loans do not involve property rehabilitation. These loans may be used when investors require expedited financing to purchase investment properties, such as rental properties, where quick closing is necessary. While bank financing may require approximately 30 days, a hard money loan can facilitate a faster closing, sometimes within two weeks. Usually, investors provide at least 30% cash for the purchase. While fees and interest rates are higher, borrowers may refinance into conventional loans soon after closing. This type of short-term financing is often referred to as a “bridge loan.”
Refinance Bridge Loan: Hard money lenders may also offer short-term refinance loans for investment properties. The leverage on refinance loans is generally 5-10% lower than for purchase loans. In situations with high interest rates or maturing loans—such as when a commercial property owner cannot obtain long-term financing due to low debt service coverage ratios—a hard money lender may refinance the property if the loan-to-value ratio is 65% or less, usually providing up to two years for the borrower to secure new long-term financing. This arrangement is also commonly t a “bridge loan.”
Equity Cash Out Loan: Hard money lenders offer equity cash out loans secured by investment real estate when the loan-to-value ratio does not exceed 65%. Hard money lenders generally only consider first mortgages (senior liens); second mortgages are uncommon except in a few states such as California and Arizona. A typical use case is when an investor who owns a property outright wishes to access some equity to purchase another property. Lenders secure a lien and disburse funds, often within 10 business days. For commercial owners, equity loans may cover major repairs. A clear exit strategy is required for approval, as lenders expect repayment within one or two years.
Ground-Up Construction Loan: Some home builders opt for hard money lending over banks for construction funding, citing benefits such as higher leverage and faster draw schedules. Hard money loans typically do not cover land acquisition or soft costs. Commonly, the builder already owns the land and has completed site development before seeking funding, which may cover up to 85% of project costs, with the builder contributing the remaining 15% equity. Some lenders accept land equity in lieu of cash contributions. Few lenders provide ground-up construction loans due to their higher risk and required expertise; those that do generally require borrowers to have prior relevant experience.
Rehab-to-Rent Loan: Also referred to as Buy & Hold or BRRRR (Buy, Rehab, Rent, Refinance, Repeat), this strategy applies to residential investment properties. Hard money loans may fund both acquisition and renovation. Instead of selling after rehab, the investor rents out the property and seeks long-term rental financing. Typically, lenders will finance 80-90% of the purchase and 100% of the rehab costs, provided the total loan does not exceed 70% of the post-renovation value. Lenders also review the investor’s ability to qualify for long-term refinancing, which may include requirements such as a minimum FICO score of 680 and a debt service coverage ratio above 1.2. The property must generate positive cash flow. Search for Residential Rehab Lenders.
DSCR Rental Property Loan: DSR loans differ from hard money loans. Though some hard money lenders originate DSCR loans, all long-term rental loans are ultimately sold to institutional secondary markets. Instead of using their own balance sheet funds, most hard money lenders partner with wholesale lenders equipped to sell bulk DSCR loans. Due to frequent rate changes, it is considered risky for a hard money lender to hold a 30-year rental loan portfolio.
Competitive Offers from Lenders
One of the key advantages of working with mortgage brokers like Heritage Funding is our excellent relationships with various lenders. These connections allow us to present competitive offers to you, ensuring you receive the best terms and rates available in the market.
Friendly and Personalized Service That Stands Out
Our commitment to providing friendly and personalized service sets Heritage Funding apart from other mortgage brokers. We believe that building strong relationships with our clients is essential to their success.
Contact Us
Phone: +1 (215) 948-4143