6 Types of Primary Lenders to Use for Financing Deals

Primary lenders are where the majority of people are going to go to finance their home purchase. Now with investing there is obviously a huge market for hard money lenders and alternative financing, but here is a list of some of the areas where financing is also available.

1.) Commercial Banks and Savings and Loans Organizations- This is the most common place people find their mortgage loan. They will typically lend for single family homes the most, but they are also able to do commercial loans for much larger projects.

2.) Credit Unions- These institutions primarily lend to consumer homebuyers, but rules will vary by the organization. Many credit unions will allow you to do commercial loans as well, and of course you can use them to purchase a duplex, triplex and do an owner occupied if you live in one of the units.

3.) Insurance Companies- Less common avenue for finding financing, insurance companies will actually lend money out for certain projects. Typically the projects will need to be larger, such as new construction projects, large office buildings, or shopping centers.

4.) Investment Groups- This could potentially fall under the "hard money" category for all intensive purposes. This is basically a group of individuals or companies who pool their money to make mortgage loans.

5.) Mortgage Banking Companies- These are companies that are set up by investors who specifically are looking to make mortgage loans. They do not offer banking services, but focus only on making mortgage loans, differentiating themselves from the banks.

6.) Pension Funds- This is a uncommon avenue for financing, but it is possible. Although pension funds are becoming extinct it seems, there are some pension fund managers who will lend money to fund construction of large real estate projects and purchases. They generally won't be made to small individual homebuyers however.

Here are just a few different sources for financing, of course leaving out hard money individual loans and private investors. Be sure to check out my blog as www.AspiringFreedom.com for all things personal finance, passive income, and escaping the 9-5 lifestyle.