The use case
Capital for investment opportunities.
Investors may need to move on a purchase, refinance an existing property, complete a 1031 exchange, or solve a time-sensitive real estate scenario.
What is a Business Purpose Loan?
A business purpose loan gives real estate investors access to short-term, asset-based capital for acquisitions, refinances, 1031 exchanges, and transitional situations. Harbor reviews the property, equity, collateral position, and exit strategy to determine whether the loan structure can support the investment objective.
The structure
Asset-based financing.
Harbor looks at the property, available equity, collateral position, and repayment plan to evaluate whether the loan structure fits the request.
The outcome
Move forward with more control.
The borrower can access short-term capital for the next investment move while keeping the financing focused on the asset, timeline, and exit strategy.
Why mortgage brokers choose to work with Harbor
100% financing possible
Based on available equity.
Harbor Lending does not provide tax, legal, or 1031 exchange advice. Borrowers should consult their tax advisor, legal counsel, and qualified intermediary regarding 1031 exchange requirements and deadlines.
Licensed States
Where Harbor lends
Harbor can lend and cross-collateralize properties across multiple states, where permitted by applicable state law. That gives mortgage brokers another path for qualified real estate investors using available equity for acquisitions, 1031 exchange gap financing, and time-sensitive replacement property purchases.
Cross-collateralized structures can support scenarios where the replacement property is in a different state than the relinquished property.
Licensed
Coming Soon
Not currently available
Subject to approval and program guidelines. Program availability may vary by state. This is not a commitment to lend.
Investor Use Cases
Six scenarios the business purpose loan is built for.
Subject to approval and program guidelines. Not all scenarios will qualify.
Fast acquisition capital
Investment opportunity with a tight close window. Harbor is built to close on the timeline the deal requires.
Multi state collateral scenarios
Harbor's asset-based structure handles deals that require creative collateral arrangements and multi-property scenarios across multiple states.
Bridge the 1031 exchange gap
Harbor bridges the timing gap so the exchange window stays intact and the right property does not slip away. Supports both standard and reverse 1031 exchange scenarios.
Purchase and reposition
Buy a property, reposition it, and exit through sale or refinance. Short-term, asset-based capital designed for the fix-and-flip investor's timeline and exit strategy.
Equity extraction
Extract equity from an investment property to fund a new acquisition. Asset-based. A close timeline built around the deal. Subject to approval and program guidelines.
Transitional refinance
Property recently acquired, being repositioned, or not yet stabilized. Harbor bridges the gap while the asset moves toward its next phase. Subject to approval and program guidelines.
Have a borrower who needs a business purpose loan?
Loan officers and mortgage brokers. When your investor client needs fast, asset-based capital for an acquisition, a 1031, or a complex reposition, submit a scenario and we will give you a clear answer quickly. We respond fast and never compete for your clients.