Capital Concepts Responds to Burgeoning Real Estate Market with Real Estate Financing Options for Investors

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With interest rates expected to rise, Houston mortgage broker Capital Concepts recommends investors get in on a "hot" market by taking advantage of multiple real estate financing options.

Capital Concepts encourages real estate investors to take advantage of a "hot" market
"Real estate financing is widely available today. And, it's possible to find interest rates that are much lower than they were a few years ago." -- Capital Concepts

Mortgage broker Capital Concepts specializes in Houston investment property loans. Unique financing options allow interested investors to take advantage of Houston's burgeoning real estate market.

Capital Concepts, an expert in Houston investment property loans, offers a variety of financing options uniquely geared to clients' specific needs. As the number-one source in Houston for real estate investment property loans, Capital Concepts offers five specific types of real estate financing: Conventional loans; portfolio loans; hard money loans; 80/15/5 "piggyback" or combination loans; and blanket loans.

Conventional loans are suitable for investors who meet "conventional" requirements such as a fair-to-good credit score, acceptable debt-to-income ratio, and have a down payment that's 5-25% of the purchase price.

Portfolio loans are suitable for investors that may not meet the strict requirements required of conventional loans. Advantages include terms that are more flexible than conventional loans and do not have to meet standard mortgage underwriting requirements.

Hard money loans are suitable for investors who want to buy properties that are distressed and in need of repair. These loans are backed by individuals "private" money or are funded by wealthy investors. Loans are typically secured in a short period of time--an important consideration for investors who must act quickly because they need to purchase a property that's also coveted by other investors. Loan qualifications are also usually based on property value rather than the investor's income, assets, credit or debt.

80/15/5 loans are also called piggyback" or combination loans. Investors must pay 15% of the purchase price, with the remaining 85% split into a first mortgage of 80% (the first number), and a second mortgage of 5% (the third number). This type of mortgage can also be split into 80/10/10, or 75/15/5. These loans allow investors to forgo the 20% down-payment if necessary; however, they can still avoid paying private mortgage insurance or PMI.

Blanket loans let investors leverage investments by buying multiple properties, land that will be parceled out and sold, or larger tracts of land. Investors who are interested in building and developing may access these loans rather than individual loans. Advantage: The investor can sell segments of the entire property without having to pay the entire mortgage off.

Capital Concepts mortgage broker services also offer buyers the ability to participate in the lending process without adding extra costs. As a mortgage broker, Capital Concepts has access to multiple lenders and has the ability to find "niche market" financing that would otherwise be unavailable to buyers.

With real estate values increasing, Capital Concepts believes that now is the time to get in on the real estate market. "Real estate financing is widely available today," say company representatives. "And, it's possible to find interest rates that are much lower than they were a few years ago."

United States' Federal Reserve chair Janet Yellen has also said that she expects to raise interest rates later in 2015--as early as September. This could also affect some investors' ability to take advantage of this "hot" market, and is another reason for interested investors to take action quickly.

To learn more about Capital Concepts' real estate financing options for home purchase or real estate investment, visit

About Capital Concepts

Specializing in "smart money lending," Capital Concepts was started by Houston native Blake A. Yarborough. He and his team of experts have been helping investors, consumers and homeowners with financing needs since 1996. Services include mortgage broker services, draw requests, property appraisals, real estate investor financing programs, private home mortgages, and financial planning services.

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Stefanie Thomas
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