The US real estate financing & deal structure reference.
A professional guide to every major loan program, capital stack, and ownership vehicle used in US real estate — from owner-occupied homes to institutional multifamily and structured private credit.
Residential & owner-occupied loans
Programs designed for primary residences, second homes, and house-hack 1–4 unit purchases.
Conventional
Conforming loans following Fannie Mae / Freddie Mac guidelines. Down payments from 3%–20%, terms 10–30 years, fixed or ARM. Standard W-2 underwriting; primary, second home, or 1–4 unit investment.
FHA
Government-insured loan for owner-occupants. 3.5% down with 580+ FICO. Allows 1–4 unit purchases (house-hack friendly). Includes mortgage insurance (UFMIP + annual MIP).
VA
Zero-down financing for eligible veterans, active duty, and surviving spouses. No PMI, competitive rates, funding fee instead of MI. Owner-occupied 1–4 units.
USDA
USDA Rural Development loans for eligible rural and suburban properties. 0% down, income limits apply, primary residence only.
Jumbo
Loans above conforming limits. Stricter underwriting: typically 700+ FICO, 10%–20% down, 6–12 months reserves. Used for high-value primary, second homes, and large investment properties.
Non-QM
Non-qualified mortgages for borrowers outside agency guidelines: bank statement, asset-depletion, P&L, ITIN, and 1099-only programs. Higher rates, more flexible documentation.
Investor & business-purpose loans
Asset-based and cash-flow underwritten financing for rentals, value-add, and ground-up projects.
DSCR Loans
Underwritten on the property's cash flow (NOI ÷ debt service), not personal income. Typical minimums: DSCR ≥ 1.20–1.25×, 20–25% down, 660+ FICO. 30-year fixed, 5/6 & 7/6 ARM, and interest-only options. Vehicle-friendly (LLC title).
Bridge / Transitional
Short-term (6–24 month) financing for acquisitions needing repositioning, lease-up, or bridge to permanent. Interest-only, 70–80% LTC, often with rehab holdback. Faster close than agency.
Hard Money
Asset-based private capital, usually 8–12% rate + 1–3 points. Funded in days. Common for fix-and-flip, distressed acquisitions, and value-add projects.
Fix-and-Flip
Combined acquisition + rehab facility. Sized to ARV (after-repair value), typically up to 85% LTC and 70% ARV. Includes draw schedule for renovation.
New Construction
Ground-up construction loans. Sized on LTC and stabilized value. Interest-only during construction, draws against budget, conversion or refinance at completion.
Portfolio / Blanket
Single facility secured by multiple properties. Enables release prices, cross-collateralization, and operational efficiency for landlords with 5+ doors.
Commercial & institutional debt
Long-term and securitized financing for stabilized multifamily and commercial assets.
Agency Multifamily (Fannie / Freddie)
Non-recourse permanent financing for 5+ unit multifamily. 5/7/10-year fixed, 30-year amortization, attractive pricing for stabilized assets ≥ 90% occupied for 90 days.
HUD / FHA Multifamily (221(d)(4), 223(f))
Long-term, fully amortizing, non-recourse government-insured loans for multifamily and healthcare. Up to 35–40 years. Lowest cost of capital, longest process.
CMBS (Conduit)
Commercial mortgage-backed securities for stabilized commercial assets. Fixed-rate, 10-year term with 30-year amortization, typically non-recourse with carve-outs. Defeasance or yield maintenance prepay.
Bank / Credit Union
Balance-sheet commercial real estate loans for office, retail, industrial, mixed-use. Recourse, 5/10-year terms with 20–25 year amortization, relationship-driven.
Life Company
Insurance companies providing long-term, low-leverage, fixed-rate debt on premier stabilized assets. 10–25 year terms, non-recourse, competitive pricing.
SBA 504 / 7(a)
Owner-occupied commercial real estate. 504: 90% financing on hard assets with 25-year fixed rate. 7(a): more flexible up to $5M.
Deal structures & capital stack
How institutional and private operators structure equity, debt, and ownership across a transaction.
Joint Venture (JV)
Two principals contribute capital and/or expertise into a single SPV. Returns split via promote and pari-passu tiers. Used for one-off deals where both parties want active control.
Syndication (506(b) / 506(c))
Sponsor raises equity from a pool of passive LP investors under Reg D. 506(b): no advertising, accredited + 35 sophisticated. 506(c): general solicitation allowed, accredited only with verification.
Preferred Equity
Sits between senior debt and common equity. Receives a fixed preferred return (typically 9%–13%) before any common distributions. Often used to bridge equity gap with no dilution.
Mezzanine Debt
Subordinated debt secured by pledge of equity in the property-owning entity (not the property itself). Bridges between senior loan and equity at 11%–15%. Intercreditor agreement governs rights.
Seller Financing
Seller carries back all or part of the purchase price as a note. Flexible terms, faster close, useful for properties hard to finance conventionally. Often paired with a bank first.
Subject-To & Wraps
Buyer takes title subject to existing financing remaining in seller's name. Wrap = seller carries new note that 'wraps' existing loan. Legal & due-on-sale considerations critical.
Lease Options & Master Lease
Control without ownership. Buyer leases asset with option to purchase at a set price. Master lease assigns operational control of entire property, common in commercial repositioning.
1031 Exchange
IRC §1031 like-kind exchange defers capital gains tax when reinvesting proceeds into qualified replacement property. 45-day identification, 180-day close, qualified intermediary required.
Opportunity Zones
Capital gains invested in a Qualified Opportunity Fund within 180 days receive deferral and, if held 10+ years, elimination of gains on the new investment.
Tenant-in-Common (TIC) & DST
Fractional ownership vehicles. TIC: direct deeded interest with vote. Delaware Statutory Trust (DST): passive, 1031-eligible, professionally managed, no investor decision rights.
Waterfall & Promote
Distribution structure with tiered hurdles (e.g., 8% pref, then 70/30 to IRR of 15%, then 50/50). Aligns sponsor 'promote' with investor returns.
Recourse vs Non-Recourse
Recourse: lender can pursue personal assets on default. Non-recourse: collateral only, with 'bad-boy' carve-outs (fraud, bankruptcy, waste). Drives pricing and leverage available.
Core underwriting metrics
The acronyms that drive every US real estate underwriting model.
| Acronym | Name | Formula / definition |
|---|---|---|
| LTV | Loan-to-Value | Loan ÷ Appraised value |
| LTC | Loan-to-Cost | Loan ÷ Total project cost |
| ARV | After-Repair Value | Stabilized post-rehab appraisal |
| DSCR | Debt Service Coverage | NOI ÷ Annual debt service |
| NOI | Net Operating Income | Effective income − Operating expenses |
| Cap Rate | Capitalization Rate | NOI ÷ Property value |
| CoC | Cash-on-Cash | Cash flow ÷ Cash invested |
| IRR | Internal Rate of Return | Time-weighted return across hold |
| EM | Equity Multiple | Total distributions ÷ Total equity invested |
| GRM | Gross Rent Multiplier | Price ÷ Gross annual rent |
Model your next transaction with our calculators.
Run DSCR, cap rate, cash-on-cash, BRRRR, and fix-and-flip scenarios using the same underwriting metrics described above.
Real estate private lending education and loan-program reference.
A working reference covering every major US real estate loan program and capital structure used in private and institutional transactions — with a focus on how real estate private lending fits into the broader financing landscape.
From conventional, FHA, VA, USDA, and jumbo on the residential side to DSCR, bridge, hard money, construction, CMBS, agency, and SBA on the commercial side, this reference helps sponsors and investors match the right loan program to the right strategy.
Private money lending for real estate and real estate private credit occupy a specific role in this landscape: speed, structural flexibility, and asset-backed underwriting where conventional lenders cannot execute on the timeline or structure required.
Conventional & agency
Fannie, Freddie, FHA, VA, USDA, jumbo, and CMBS for stabilized assets.
DSCR & business-purpose
Cash-flow-based underwriting for investor-owned real estate portfolios.
Bridge & hard money
Real estate private lending for acquisitions, transitions, and renovations.
Structured capital
Joint ventures, syndications, preferred equity, mezz, and seller financing.
Use this reference to frame the conversation — then reach our team for transaction-specific real estate private lending structuring.