Buying property isn’t always straightforward. Homebuyers and real estate investors often want to buy property but don’t have the available funds on-hand.
Maybe you need to relocate your company’s office to a new city before selling your current building. Or 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.
To navigate transitions like these, you need financing specifically designed for that purpose.
Bridge loans provide temporary financing to help you affordably make the next move with your real estate investments.
Connect with the perfect lender to explore your options and see what you qualify for.
Get the type of loan you need for the property you want, based on the property’s value
Get approved with less documentation through straightforward underwriting
Get immediate access to capital and avoid being held back by a loan that limits you
Don’t be held back by standard financing options.
Bridge loans are hard money, short-term loans that allow for straightforward underwriting so you can move quickly to secure the property you want, when you want it.
Because bridge loans are approved based on the property’s asset value, you’re not required to provide income or employment verification.
With flexible qualification requirements and terms meant to meet your transitional needs, Bridge loans work well for homebuyers and real estate investors alike.
Bridge loans are available to a range of people, from real estate investors to homebuyers, and businesses or 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.
Bridge loans provide financing for a specific investment purpose. They cover the costs of purchasing a new property before the sale of another or before you can get long-term financing for the property.
For this reason they’re offered with shorter term lengths, meant to cover the timeline of your transition.
They meet unique financing needs to bridge the cash gap by offering flexible qualification requirements based on the value of the property you need to finance.
This makes them more accessible than standard loans that require certain income and other documentation that is related more to the borrower’s personal finances than the property itself.
The minimum requirements vary depending on the situation and can be more flexible than standard banks allow. In many cases a credit score of 680 or higher is often best.
Requirements for a bridge loan are usually more lenient though because the property’s asset value is also considered, rather than lenders solely relying on your personal finances.
Bridge loans are often interest-only, meaning you pay only the interest for the outstanding loan balance each month. The full amount you borrowed isn’t due until the end of the loan term.
In many cases, you don’t need to make monthly payments during the first few months after closing a bridge loan but will need to from there until you can pay it off completely.
How you pay off the loan will depend on your unique situation. There are a handful of options. For example, you could pay off the bridge loan from the profits you make selling a property you currently own.
In some cases, you may be able to refinance the bridge loan to a new loan type that is intended for making long-term payments.
There are closing costs associated with processing any loan, and the costs of a bridge loan are comparable to standard mortgages. They include costs for the lender to service the loan, as well as an appraisal and other fees.
