Real Estate Loans 101: What Every Investor Should Know

Introduction

Starting your journey in real estate? 🏡 Before you buy your first property, it’s critical to understand the loan basics. The type of financing you choose directly impacts your cash flow, risk, and long-term returns.

At Kenbry Capital, we believe smart investors don’t just find the right property—they pair it with the right financing. Here’s a simple guide to loan fundamentals that every investor should know.


1. Loan Types: Conventional, FHA, VA

Different loans are designed for different needs.

  • Conventional Loans – Common for both homeowners and investors; require solid credit and down payment.
  • FHA Loans – Backed by the government; allow lower down payments but are typically for primary residences.
  • VA Loans – Exclusive to veterans; offer no-down-payment options but also limited to primary residences.

👉 Investor Tip: At Kenbry, we focus exclusively on investment property financing—fix & flips, DSCR loans, ground-up construction, and bridge loans.


2. Interest Rates: Fixed vs. Adjustable

Your interest rate determines how much you’ll pay over time, so it’s important to choose wisely.

  • Fixed Rate – Stays the same for the life of the loan, offering stability and predictability.
  • Adjustable Rate (ARM) – Starts lower but can fluctuate based on the market, introducing more risk.

👉 Even a 1% change in rates can mean thousands saved—or lost—over the life of your loan.


3. Always Read the Fine Print

Hidden fees, prepayment penalties, and restrictive terms can turn a good deal into a bad one. Before signing, always:

  • Review closing costs carefully
  • Ask about repayment flexibility
  • Clarify underwriting requirements

👉 At Kenbry, we prioritize transparent terms and honest communication, so clients always know what to expect.


Where Kenbry Capital Fits In

We don’t fund primary residences or first-time homebuyers. Instead, we’re built for serious real estate investors looking to scale.

What We Fund:

  • Fix & Flip & BRRR strategies
  • DSCR purchases & refinances
  • Ground-up construction projects
  • Bridge & short-term financing

Why Clients Choose Kenbry:

  • Seamless closings without unnecessary red tape
  • Creative deal structures tailored to investor goals
  • Relationship-driven support for long-term growth

Conclusion

Understanding the basics of real estate loans is the first step to becoming a confident, profitable investor. From loan types to interest rates to reading the fine print, the financing you choose sets the stage for success.

👉 At Kenbry Capital, we make loans that create simpler lives, better days, and solved problems—so you can focus on building wealth.