Bridge Loans are short-term and temporary loans used to reposition an asset at higher than prevailing interest rates. The bridge loan is backed by real estate collateral. There is an interest only payment, usually good for 1-2 years with no prepayment penalty. This type of financing allows borrowers to meet current obligations by providing immediate cash flow. Borrowers must illustrate a clear exist strategy to the lender to pay back the bridge; this can be accomplished through a refinance, or the sale of the subject property for a profit after a rehab.

Lending CriteriaDescription
Purpose:
  • Acquisition
  • Refinance / Cash-Out
  • Rehab / Tenant Improvements
Property Type:
  • Single Family (Non-Owner)
  • Multifamily / Commercial
  • Light Industrial
  • Special Purpose
Max Loan-to-Value:
  • Purchase: 75% LTV (ARV) / 85% LTC
  • Refinance: 75% LTV (ARV) / 85% LTC
  • Cash-Out / Rehab – Same
Borrower Types:
  • Individuals
  • Corporations
  • Foreign nationals
  • Non-Permanent Resident Aliens
Minimum Credit Scores:
  • 650
Prepayment Penalty:
  • Soft Prepay
Financed Properties:
  • Unlimited
Recourse:
  • Yes
Broker Fee:
  • 1 point
Terms:
  • 24 Months
Loan Amounts:
  • $1,000,000 – $8,000,000
Closing Timeframes:
  • 45-60 days
Repayment:
  • Interest Only
Collateral:
  • 1st Trust Deed
Other Costs:
  • All 3rd Party Fees