Bridge Loan Financing
We offer loans for any type of real estate situation where a quick closing is needed, As an example A “Bridge Loan” may be short term mortgage financing for just 6-12 months and that is in place between the termination of one loan and the beginning of another loan. Also, a form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing. Commonly used for construction or rehab. Also unfinished or broken projects.Rates are higher than a conventional loan because financing is short term.
This program is designed to provide the flexibility of a structured loan while offering the ability to eventually lock into the most favorable permanent financing that exists for individual business needs. We specialize in loans of $300,000 to $6,000,000 million that are designed to solve problems for business with special needs and circumstances. Time lines are critical in many cases.
- We Offer “Fast Track” Timelines.
- Up to 100% LTV (with Additional Collateral)
- Equity Participation Structured Financing may be considered
- Interest Only Payments
- Loan Terms From 6 to 36 Months
We offer loans for any type of commercial or residential real estate situation where a quick closing is needed. We know our markets and can get to deal certainty while the bank is still asking questions!
Simple Bridge Loan application process
Present a clear financial plan for your home project. Many hard money lenders will fund 60 – 70% of the after-repair-value (ARV) of the home; you will be responsible for funding the additional 30 – 40% of the additional cost. If you have this cash on hand, that will increase your chances of being approved for the loan. If you do not have the money to cover the additional 30 – 40% of the home’s value, then the lender might put a lien on another property that you own.
- Most lenders will prefer that you have 30 – 40% of the additional cost in hand rather than using another loan or a credit card to finance the difference.
- This generally applies to individual homes, not to large commercial projects.
Prepare additional documentation. Although most lenders are concerned with the value of the property you want to buy, they may also ask for your personal financial information. This might include documents such W-2s, paystubs, bank statements and other items in your credit history. You should be prepared to present all of this information to your lenders.