Who Are Business Purpose 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 Business Purpose 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