This fall, we are noticing a trend in inquiries from potential customers interested in financing for:

• Buying or renovating properties with deferred maintenance Buyer is looking to purchase and renovate a property with substantial deferred maintenance with the intention of selling it.
• Vacant lot purchase They are looking to purchase a vacant lot or tear-down home in order to build and then sell.
• Lot purchase and CPR When someone purchases a residential parcel with a single-family home with the intention to CPR it into two units, build a second home, and then sell or refinance the individual units upon completion of the CPR.
• Building a spec construction home

In a strong sales market, we see people taking advantage of the current low home inventory to build and develop properties for sale. Finance Factors has several portfolio loan programs, not available from most other lenders, to finance aggressive investors looking to buy property that can be CPR’d or subdivided, or are willing to buy a tear-down home and then build a new home for sale:

• Multiple Collateral loans. Reduces the amount of cash that the borrower needs to put into a transaction.
• If cash flow is tight during construction, we may be able to establish a payment subsidy account to cover our loan payments until the property is completed and ready for occupancy or sale.
• With our vast experience in doing multiple collateral loans, we are also very flexible and accommodating in doing a partial release of mortgage when the borrower sells a property but doesn’t have enough sales proceeds to pay off the entire loan balance.

Contact one of our Business Development Managers today! They are experts with these types of loans and will walk you through each step of what may seem like a complex mortgage process.