A bridge loan is short-term financing to help cover the gap until permanent financing is secured. Bridge loans can be used to buy and renovate property for a fix and flip project, purchase property under a tight closing timeframe, or save properties from foreclosure.
A borrower can use bridge financing to purchase a second property before the first one is sold if there are difficulties in qualifying or shortages of cash. The proceeds from the property being sold or refinanced can then be used to cover the bridge loan.
Bridge loans can also be used to cover existing obligations including finding a new tenant, stabilizing the cash flow of a property, fixing a short-term issue affecting the property, or making upgrades that justify charging higher rent. These loans also provide an opportunity for borrowers to increase credit scores or improve debt-to-income ratios to help quality for longer-term, conventional financing in the future.
Loan Purpose
- Used to buy and renovate property for a fix and flip project, purchase property under a tight closing timeframe, or save a property from foreclosure.- Purchase a second property before the first one is sold. Proceeds from the property being sold can be used to cover the bridge loan.
- Cover existing obligations including finding a new tenant, stabilizing the cash flow of a property, fixing a short-term issue affecting the property, or making upgrades to justify higher rent.
- Provide an opportunity for borrowers to increase credit scores or improve debt-to-income ratios to help quality for longer-term, conventional financing in the future.
Investor Profile
- Investors who are interested in purchasing a fix and flip property.- Investors who want to purchase a second property before the first one is sold.
- Owner-occupant borrowers who want to purchase a second primary property while they wait for the first property to be sold.
- Investors holding rental property who need financing to tide them over until a new tenant is found or needs to make improvements to property
Loan Benefits
- Faster funding
– Close in 7 to 14 business days versus 30 to 45 days for a conventional mortgage
- Flexible credit requirements and terms – loan is backed by the value of real property versus a borrower’s personal credit score and bank account funds
- No income verification
- Up to 80% loan-to-value (LTV)
- Loan amounts from $100,000 to $3 million
- Interest-only payments
- Terms: 6 to 36 months. Extensions possible.
- No prepayment penalties on one year loans
- Non-US citizens, permanent residents with green cards, and non-permanent residents with a valid work visa may qualify
Why Partner With Us for Your Next Loan?
Whether you’re considering a first investment property or adding more properties to an existing real estate portfolio, we can help you select a loan program that meets your investment and overall financial goals.
Competitive Rates
Our company philosophy has been built around delivering the lowest possible interest rates and costs to our clients.
Flexible Terms
Loan is backed by the value of real property versus a borrower’s personal credit score and bank account funds.
Fast Funding
Close in two weeks or less versus 30 to 45 days for a conventional mortgage.
Get Started Today
Call one of our experienced mortgage advisors for no-cost loan consultation and rate quote.
