Bridge Loan Terms
Key Features:
- Fast Closing: Expedite funding in as little as 14-30 days.
- Exterior Valuations: Simplified property assessments (*where applicable).
- No Prepayment Penalty: Flexibility to pay off early without fees.
- Flexible Loan Amounts: Loan sizes ranging from $100,000 to $100M.
- High LTV & LTC:
- Up to 80% Loan-to-Value (LTV).
- Up to 85% Loan-to-Cost (LTC), financing 100% of rehab costs.
- Cash-Out Options: Unlock equity for additional capital needs.
- Term Lengths: Options from 12 months to 30 years, including interest reserves.
- Interest Rates: Starting from 9% to 12%, with some options at 11.99%.
- Interest Structure: Charged only on funds as drawn.
Property & Use Eligibility:
- Eligible Properties:
- Mixed-use and multifamily properties (5+ units).
- Fix/Flip and construction projects (5+ units).
- Construction-to-permanent loans.
- Commercial construction.
- Special Projects: Suitable for rehabs, repositioning, property improvements (PIPs), reflags, and distressed assets.
- Short-Term Rentals: VRBO and Airbnb-friendly.
Additional Details:
- Equity Options: Mezzanine and joint venture equity available.
- Recourse Options: Both recourse and non-recourse loans.
- Geographic Coverage: Nationwide except NY, NV, AZ, ND, and SD.
- Loan Size Range: $100,000 to $100M, accommodating a wide variety of projects.
- Limitations: No special-use or purely commercial-only properties.
Rates And Terms Subject To Change
Bridge Loans: Flexible Financing for Transition Periods
Bridge loans are short-term financing solutions designed to “bridge the gap” between immediate funding needs and long-term financing or the sale of an asset. These loans are often used in scenarios where timing is critical, providing quick access to capital when traditional financing options may take longer to secure.
How Bridge Loans Work
A bridge loan typically uses existing assets, such as real estate or inventory, as collateral. Borrowers often use bridge loans to finance property purchases, complete renovations, or cover operational costs while waiting for a more permanent financial solution.
For example:
- Real Estate Transactions: If you’re purchasing a new property before selling your current one, a bridge loan can cover the down payment and closing costs.
- Business Needs: Bridge loans can help businesses fund inventory or meet payroll during cash flow gaps.
These loans generally have higher interest rates than traditional loans, reflecting their short-term nature and faster approval processes. However, their flexibility and speed can make them invaluable in time-sensitive situations.
Is a Bridge Loan Right for You?
Bridge loans are ideal for borrowers who have a clear plan for repayment, such as proceeds from a property sale or incoming long-term financing. They’re best suited for individuals or businesses confident in their ability to manage the higher costs associated with short-term borrowing.
Why Timing Matters
Bridge loans are structured to align with the timeline of your transaction. Whether you’re closing a deal or navigating an unexpected delay, bridge loans provide the liquidity needed to keep your plans on track.
This type of loan is a versatile tool for managing transitions, offering the financial flexibility to seize opportunities or maintain momentum when traditional lending can’t keep pace with your schedule.