A bridge loan is a short-term loan used in both commercial and residential real estate. This loan is often the best option to quickly borrow against existing property equity that is being sold or refinanced in the upcoming months.
Who Are Bridge Loans Best For?
Bridge loans can be used for investors & property owners that want to pull cash out to buy another property before their other property sells or pull cash-out before they find a more long-term or traditional refinance loan.
How Do Bridge Loans Work?
Bridge loans lend on residential or commercial properties that are often backed by small banking institutions or private lenders. A borrower completes a simple application, submits minimal paperwork, and gets the loan within 5-15 days.
Loan Qualification Requirements:
To qualify for a second mortgage, you'll need:
- A Copy of a valid state ID
- A residential or commercial property.
- 35% Equity in the subject property
- A copy of your homeowner's insurance
- No Income documentation is needed like tax returns or paystubs.
- To protect the senior community a competency letter from a doctor may be required
About This Loan:
- You can get cash out fast.
- Bad Credit Allowed (Low Scores, Bankruptcy, Foreclosure)
- Loan amount from $100k-$5M
- Typical Rates are from 7.99% to 12.99%
- AirBnB's, Rental Properties, Commercial Properties - Eligible.
- The loan can't exceed 65% of the value of the property
- The property must be an Investment Property or a Primary Residence can be used if the loan is for a business.
- Eligible property types include: Condos, Townhomes, Single Family Homes, Apartments, and Commercial Buildings