Construction Only Loans

Short-Term Financing: Construction loans are typically for a year or less, covering the construction phase.
Disbursement of Funds:
Funds are disbursed in stages ("draws") as construction milestones are met, with inspections often required before each draw.
Interest-Only Payments:
During the construction phase, borrowers typically make interest-only payments on the funds drawn.
Higher Interest Rates:
Construction loans often have higher interest rates than traditional mortgages due to the increased risk for lenders.
Quick approval
Minimal Documentation required

Construction-to-permanent loans

Instead of getting separate loans, this loan streamlines the process by transitioning directly from construction financing to a traditional mortgage.
Key Features of a Construction-to-Permanent Loan:

Combined Financing: It combines the initial financing for land purchase and construction with the long-term mortgage.
Interest-Only Payments During Construction: During the construction phase, you typically make interest-only payments, which can be a lower monthly payment than a full principal and interest payment.
Seamless Transition: Once construction is complete, the loan transitions into a permanent mortgage with a standard monthly payment plan.
Single Closing: Many construction-to-permanent loans offer a single closing, which can simplify the process and potentially reduce closing costs.

Fix & Flips Loans

Short-term financing:These loans are typically for 6 to 18 months.
Higher interest rates: Compared to traditional mortgages, fix and flip loans carry higher interest rates to compensate lenders for the increased risk.
Focus on property value: Lenders primarily consider the potential after-repair value (ARV) of the property rather than the borrower's creditworthiness.
Interest-only payments: Most fix and flip loans require monthly interest-only payments, with the principal due at the end of the term.
Potential for quick profits: If done successfully, fix and flips can generate significant profits in a short timeframe.
Private lenders: Individuals or companies that lend money for real estate projects, often with more flexible terms.