What is a Bridge loan?

A bridge loan, or “private money financing” comes from a private funding source rather than from a bank or credit union. This type of short-term loan can be helpful when you need money fast, such as when you are purchasing a new property, or refinancing loans that have matured. Bridge loans have greater flexibility and have higher rates because they fund faster than traditional loans and because they are loans based on the collateral rather than on your personal credit or income. This means there is no minimum credit score or income ratio to qualify. When your bank turns you down and you need money fast, a Bridge Loan may be the solution you need.

Pros and Cons of Bridge Loans

The Pros

  • Speed of Funding
  • You can get this loan from a private money lender MUCH faster than a bank or credit union. These loans are not to be confused with a personal loan or second mortgage.
  • No Min Credit Score or Income Qualification
  • You don’t need to have a good credit score to get a bridge loan because this in an asset based loan.
  • Greater Flexibility

The Cons of Bridge Loans

  • Higher Interest Rates
  • Greater risk for the lender
  • Shorter terms

Bridge loan Summary

  • Minimum Loan Amount $1 Million
  • Maximum Loan Amount $35+ Million
  • Interest Rate 9.99% – 11.99+%
  • Fees 2-4%
  • Timing 2-3 week closings
  • Maximum Loan to Value 75%
  • Yield Maintenance Negotiable
  • Lien Position 1st
  • Loan Term Typically 2 years
  • Nationwide in urban/suburban markets with population of 50,000+

Property Types Considered

Office, Industrial Flex or Warehouse, Retail, Mobile Home Parks, Hospitality,
Multifamily, Self-Storage, Cannabis related businesses