🚀 Creative Financing Strategies Homebuyers & Investors Are Using Right Now 💡

🏡 Creative Mortgage Financing Explained: Bridge Loans, HELOCs & More 🔑

Creative Financing Strategies: How Smart Borrowers Are Getting Deals Done

Traditional mortgages still dominate the market—but today’s most successful homebuyers, investors, and business owners are using creative financing strategies to win deals, reduce cash out of pocket, and move faster in competitive markets.

At Medallion Funds, we structure financing around the borrower’s objective, not just a single loan product. Below are the most effective creative financing tools borrowers are using right now—and when each one makes sense.

What Is Creative Financing?

Creative financing refers to non-traditional or alternative mortgage structures used to solve timing, liquidity, or qualification challenges. These strategies are especially useful when:

• A borrower needs to buy before selling
• Cash is tied up in equity
• Income is complex or non-traditional
• Speed matters more than rate
• A property needs work or repositioning

Bridge Loans: Buy Now, Sell Later

A bridge loan provides short-term financing that allows a borrower to purchase a new property before selling an existing one.

Best used when:
• Buying a home before selling the current residence
• Acquiring an investment property quickly
• Avoiding contingent offers

Advantages:
• Fast approvals
• Interest-only payments
• Flexible exit strategies

Considerations:
• Higher rates than long-term loans
• Shorter terms (6–24 months)

HELOCs & Cash-Out Equity Lines

A Home Equity Line of Credit (HELOC) allows borrowers to tap existing equity for down payments, renovations, or bridge capital.

Best used when:
• Strong equity position
• Need revolving access to capital
• Funding renovations or investments

Advantages:
• Interest only on funds used
• Reusable credit line
• Lower cost than many bridge options

Down Payment Assistance Programs

Many buyers—especially first-time or moderate-income borrowers—qualify for down payment assistance (DPA) programs they never knew existed.

Can include:
• Grants
• Forgivable second liens
• Deferred-payment loans

These programs can dramatically reduce upfront cash requirements when layered correctly with first mortgages.

Alternative & Non-QM Financing

For self-employed borrowers, investors, or high-net-worth clients, Non-QM loans provide flexibility outside traditional agency guidelines.

Examples include:
• Bank statement loans
• DSCR investor loans
• Asset-based qualification
• Interest-only structures

These products prioritize cash flow and liquidity over W-2 income.

Combining Strategies for Maximum Leverage

The most effective borrowers often stack multiple tools, such as:

• HELOC + Conventional Purchase
• Bridge Loan → Refinance
• DSCR Loan + Cash-Out
• DPA + Seller Credits

This is where working with a mortgage broker adds real value—strategy matters more than rate.

Why Work With Medallion Funds?

We are not limited to one bank or one solution. Our role is to design the cleanest execution path based on your timeline, equity, income profile, and long-term goals.

If a deal feels complicated—it usually just needs better structuring.

Final Thoughts

Creative financing is not about bending rules—it’s about using the full capital stack intelligently.

If you’re trying to buy, invest, refinance, or reposition a property and want options beyond the obvious, creative financing may be the key.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory