What is real estate financing?

Real estate financing is when a financial intermediary such as a savings and loans corporation steps in to help a home buyer raise the required amount to buy a home.  Apart from just providing mortgage financing, the Savings and Loan associations have also provided financing for home improvements as well as commercial real estate developers.

The intermediaries come in handy especially when a buyer cannot raise the asking price of the house or even the down payment and they can then have the intermediary pay the required amount as a loan or mortgage to be repaid over a specified period of time. Individual investors in Houston Texas can also help a person with real estate financing especially when the piece of real estate is quite promising and the investor expects some sort of return on investment. But this kind of financing is mainly done by banks and Savings and Loans associations which are chartered by the state to carry out this mandate.

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