Types of HML and PML Loans

Types of HML and PML Loans


An acquisition loan is used to acquire property using the loan proceeds. Can be improved lot(s) to completed and operating property. $300,000 to $50,000,000.

Acquisition & Development

Loans to both acquire and develop real property to an improved state. Voucher control is set up to disperse loan proceeds with interest only paid on funds distributed. Loan to value is determined as to the improved value. $300,000 to $50,000,000.


Asset Based

Loans for any purpose whereby collateral is put up for security. $300,000 to $10,000,000


"Debtor in Possession" financing on real property assets until institutional financing is available or sale of asset. $300,000 - $25,000,000


A Bridge Loan is a loan that is used for a short duration of time until permanent financing is put in place. Bridge loans are a perfect solution to a timely acquisition or business opportunity because they allow a purchaser or investor to act quickly. These loans can be used for acquisition, buy-outs, foreclosures, cash out and construction purposes.
Types of properties are income producing property, commercial, apartments, hotel/motel, office buildings, office complexes, golf courses, and almost all commercial businesses. Short-term programs (6-24 months) are available. $300,000 to NO LIMIT.


A Construction Loan is a loan used to construct a building or other improvements of real property, with the land and improvements as collateral for the loan. Construction reserve accounts are generally maintained to disburse the money as the construction progresses. Up to 100% cost of construction available depending on the improved value.
Type of collateral property ranges from home construction to large commercial projects.

Credit Enhancement

Credit Enhancement is a program utilized by borrowers lacking the credit or capacity to obtain premium financing. The Enhancer guarantees the loan for a fee and an equity position. (View HMF Newsletter #21 for more details).


A Mezzanine Loan is a loan that is subordinate to a Primary Lender. It involves debt, which is paid back at time of sale or refinance with an equity ownership piece given to the lender as a kicker or sweetener.
Loans on property or the business with equity in either ownership or warrants in the company. Used to buy valuable property or business or even buy out an existing partner. The program provides additional funding when first mortgage is at maximum loan amount. Up to 3-year terms available. $300,000 and larger depending on equity.

Raw Land

Unimproved real property. From lot(s) to large acreage. Normally raw land is valued at a 90-day "quick sale" price to determine loan-to-value ratios. $300,000 to $5,000,000

Standby Commitment

Standby commitments until institutional financing commits or to show proof of performance if the purchase buyout occurs. $300,000 to $50,000,000


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Thanks Anita for the clarification of loan types. Info is very helpful. Continued success to you........Lubertha



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