What is a traditional lender?

Traditional lenders offer conventional loans to consumers that are then sold to third parties like Fannie Mae and Freddy Mac. 

Use case: 

• 2nd home loans/vacation homes.
• Primary residences.
• Also available for investment properties, if your group wants to short-term rental (STR) or long-term rental (LTR).

Benefits:

• Usually less expensive than private money loans
• Usually lower down payment options
• More options than private money loans  

Things to consider:

• Could take longer than private money loans.
• You can’t close as an LLC but it’s eligible to transfer into an LLC as long as you don’t change the usage. 
• Best practice is to inform lender that it will be converted into an LLC.

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