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8 Types of Mortgage Lenders and Choosing Which is Right for You

If you’re considering purchasing a property, you should first familiarize yourself with the various types of mortgage lenders. Fortunately, many options exist, but none are one-size-fits-all. The following article will help you determine the best option for your situation.

What is a Mortgage Lender

Mortgage lenders are financial institutions that underwrite and offer real estate loans. That means that mortgage lenders set the interest rate, payment frequency, and other terms of the loans they fund.

While all mortgage lenders have the above in common, they differ in several important ways. For example, individuals with poor credit or a high debt-to-income ratio (DTI) may meet the requirements of some lenders but not others.

  1. Direct Lender

Direct lenders use their investors’ money to fund loans and the lending process is the same as it would be for a mortgage broker. However, they typically move much quicker. You’ll have to meet certain requirements involving your credit score and make a significant down payment. Examples of direct lenders include mortgage banks and portfolio lenders.

  1. Wholesale lender

Wholesale mortgage lenders offer mortgage funding to banks, credit unions, and other third parties. As a borrower, you will work with the third party through the underwriting process. This process requires that you meet certain qualifications.

  1. Retail Lender

Retail lenders provide mortgages directly to buyers and offer a variety of options. Examples of these types of lenders include mortgage bankers, banks, and credit unions. Buyers must meet similar qualifications as are typically required for mortgage loans.

  1. Portfolio Lender

Portfolio lenders use their own capital to fund mortgages and do not sell their loans to third-pary investors.  They often are more flexible where qualifications are concerned. This means that borrowers can procure larger loans even if your credit score is subpar or you don’t qualify with a traditional lender. Due to the increased risk taken on by the lender, interest rates and fees are higher.

8 Types of Mortgage Lenders and Choosing Which is Right for You

Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.

8 Types of Mortgage Lenders and Choosing Which is Right for You

  1. Online Lender

Online lenders originate loans digitally, without a physical presence. This savings on overhead translates into lower interest rates and fees for borrowers. The process is typically faster than it would be with a traditional loan, but you must have decent credit.

  1. Correspondent Lender

Correspondent lenders sell their loans to bigger mortgage lenders who, in turn, take care of payments and other details. As a borrower, you make your monthly payments to the bigger lender. Since correspondent lenders underwrite and approve their own loans, the process is quick and there are more lending options. However, you will typically need to pay higher fees and meet their qualifications.

  1. Warehouse Lender

Warehouse lenders offer short-term loan options. You will not work with these lenders directly. Instead, the mortgage is used as collateral until a bank or correspondent lender repays the loan.

  1. Hard Money Lender

Hard money lenders are private lenders whose main concern is utilizing the equity as collateral for a loan. This enables them to be flexible with loan terms and requirements. Hard money loans are a great option for borrowers who need to close quickly and/or cannot meet the qualifications of other traditional mortgage lenders. This is a short-term option and the funding process moves extremely fast.

Get Started with a Mortgage Lender Today

If you can’t secure financing through conventional methods but want to purchase an investment property, then a hard money loan may be right for you. They are easy to qualify and apply for, and the funding process is quick.

Finding a hard money loan best suited to your needs begins with contacting a short-term lender with a reputation for integrity and strong customer service.

At Wilshire Quinn, we have provided rapid and reliable funding to our borrowers since 2011. We have since become one of California’s premier hard money lenders. Contact us today and find out how we can help you reap the benefits of a hard money loan.

  • Funding typically in 5-7 business days
  • Loan Amounts from $200,000 to $20,000,000

  • Interest Rates from 7.5% to 11%

  • Loan Term: 3 – 24 months

  • Commercial & Residential (non-owner occupied) Real Estate

  • Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
  • Foreign National Loans Available


About Wilshire Quinn

Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.

Recently Funded Hard Money Loan Transactions

Slide Hollywood, California Hard Money Bridge Loan Funded LOS ANGELES, CA Loan Amount: $5,075,000 Loan Type: Refinance Property Type: Multi-Family Loan-To-Value: 64% Term: 12 Months San Clemente, California, Hard Money Cash Out Refinance Loan Funded SAN CLEMENTE, CA Loan Amount: $2,580,000 Loan Type: Refinance Property Type: Single-Family Loan-To-Value: 59% Term: 12 Months BERKELEY, CA Loan Amount: $3,575,000 Loan Type: Purchase Property Type: Multi-Family Loan-To-Value: 68% Term: 12 Months Loan Amount: $12,550,000 Hard Money Loan Funded on Two Hotel Properties in Laguna Beach, California LAGUNA BEACH, CA Loan Type: Refinance Property Type: Hospitality Loan-To-Value: 51% Term: 12 Months Loan Amount: $12,550,000

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