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Short-Term Financing Understanding Bridge Loans

If you want to buy property but don’t have immediate access to the cash to do so, consider a bridge loan.

Bridge loans provide short-term financing commonly used for transition periods. If you need to purchase a property before you can sell one that will help finance the costs, a bridge loan allows you to move quickly and buy when you need to.

See What You Qualify For

What is a Bridge Loan?

With a bridge loan you can qualify for a short-term mortgage that will “bridge” the gap between the financing you need to purchase property and the current cash you have available.

It works well for homeowners who may use the immediate cash of a bridge loan to put a down payment on a new home, while waiting for their current home to sell. 

Real estate investors may use bridge loans to cover the gap between purchasing one property without having to wait for the sale of another. When a property then sells, you can pay back the bridge loan with the money made from the sale or by getting another type of loan for the property you just purchased.

How to Get a Bridge Loan

Following are the typical steps and qualifications needed for a bridge loan.

The Financing Process

By sharing basic information about your potential purchase and plan to pay back a new loan, we’ll work with you to see if a bridge loan meets your needs and whether your situation qualifies.

See What You Qualify For

Bridge Loan Requirements to Meet

These are some of the common requirements often needed to qualify for a bridge loan. If you have questions about these requirements, we’re here to help.

  • We’ll need to know the value of the current property and the property you’re buying
  • A summary of how much you’d like to pull from an existing property to put down on the new property
  • A credit score of 680+
  • Income and asset documentation, and authorization to pull a credit report.

Bridge Loan FAQs

Financing your next property is an important step in reaching your investment goals. It’s normal to have questions. We’ve compiled answers to the frequently asked ones, but don’t hesitate to ask more.

What types of situations are bridge loans meant for?

Bridge loans are available to a range of people, from real estate investors to homebuyers, businesses to consumers. They can be used to finance various property types, including single-family, multi-family, mixed-use, and commercial property.

Whether you need to relocate your company’s office to a new city before selling your current building, you need to make an offer on a new home before your current one sells, or you need to buy an investment property before you’ve sold another, a bridge loan can help you with the transition.

If your situation and the property qualifies, bridge loans are useful anytime you need temporary financing to help you make the next move with your real estate investments.

How does a bridge loan differ from standard investment property loans?
Do I need good credit to qualify for a bridge loan?
What are my options for paying off the bridge loan within the set term length?
What costs are required to close a bridge loan?