Bridge Loans
At IGR Mortgage Services we provide Bridge Loans for real estate investors to provide short-term financing for a variety of lending situations. Banks and conventional lenders don’t offer these Bridge Loans, so private money fills the void enabling investors to take advantage of opportunities they would otherwise be unable to undertake.
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Bridge Loans For Real Estate
In its most basic form, bridge loans for real estate are is short-term financing provided to a borrower to allow them to purchase a property before their currently owned property is sold. Bridge loans are short-term loans for real estate transactions which generally require quick funding. A property owner uses a bridge loan to borrow against the equity in their existing property to finance the purchase of a new property.
As soon as the new property is acquired, the previous property is sold in order to pay off the bridge loan. Bridge loans for real estate can also be utilized in reverse order by obtaining the loan against the new property being purchased and then paying off this loan when the previous property is sold. Investors use bridge loans as “gap financing”.
For example “bridge to sale” which enables the investor to repair, remodel or stabilize income to maximize market value. Also “bridge to refinance” to increase value for placing long term financing at the lowest possible rates. Bridge loan financing typically has a term of 12 to 24 months. IGR Mortgage Services is able to provide funding for hard money bridge loans on investment property within a matter of days.
Bridge Loan Requirements
Bridge loans are short-term financing solutions to take advantage of special opportunities in real estate or to achieve specific goals. Investors should be aware of certain bridge loan requirements that will increase the chances of getting favorable loan terms.
- Loan to Value: The loan to value ratio should generally not exceed 65 -75 percent of “as-is” value and 70 – 80 percent of ARV (after repair value).
- Exit Strategy: Lenders will want a clear plan on how the investor will achieve the desired goal of the project. If the purpose is to upgrade a property or increase its rental income, the investor must present a detailed plan outlining how the loan will be used to achieve these goals. if a borrower plans to renovate an apartment complex to justify higher rents, the lender will want to see a well-thought-out renovation plan, including timelines, budgets, and expected outcomes. In situations involving partnership buy-outs or ownership restructures, lenders expect the borrower to have a solid plan.
- Experience: The borrower’s investment experience is important on the list of bridge loan requirements. In cases where remodeling, construction or correcting poor property management will increase value, the borrower’s track record will be critical. Investors with extensive, recent experience will receive better loan terms and higher leverage.
- Financial Capacity: In addition to experience, the borrower must also have the financial capacity to carry out the proposed plan. This includes having sufficient liquidity to cover the costs of the project, debt service and contingencies. Borrowers with excellant credit and cash reserves will get better loan terns and leverage.
Bridge Loan Qualifying:
Flexible underwriting and reduced documentation:
- Stated Income Program
- No Documentation Loans
- No Tax Returns
- Reduced Asset Documentation
- Loan to Individuals, Entities, Trusts, Foreign Nationals
Bridge Loan Terms
For Short Term Situations:
- Loan Amounts $100K to $10M+
- Loan To Value Ratio to 75%
- Interest rates 7.99% – 13.99%
- Term 6 to 24 Months
- Interest Only Payments
- Interest Reserve Options
- FICO scores 620+
- Fast Closing Times
- No Pre-Payment Penalty- Most Loans
- Loan Extensions Considered
Investor's Options
Giving Investors Flexibility:
- Purchase Financing
- Refinance Your Debt
- Take Cash Out
- Fix & Flip/Remodel
- Bridge To Refinance
- Bridge To Sell
- Bridge To Income Stabilization
- Wide Range of Eligible Properties
- Available To Investors of Any Experience Level
- All Scenarios Considered
Bridge Loan Requirements
It’s Flexible and Hassle-Free: Bridge Loans are a type of short-term financing (12-24 months) for real estate investors who want to finance the purchase and/or rehab of their investment property instead of using cash.
Fast Funding: Conventional lenders and banks are unable to provide bridge loans to investors. With a Bridge Loan by IGR Morgage Services there are flexible guidelines, underwriting, and a stream-lined process that will provide you with rapid access to funds.
For Real Estate Investors of every experience level: A Bridge Loan is a great solution to help investors build their real estate businesses and portfolios.
Funding alternaives for all types of properties: At IGR Mortgage Services we have Bridge Loans that are suited to your investment needs. These are some of our Bridge Loan options for Real Estate Investors: Fix and Flip, Cash- Out Refinance, or Purchase Money.
Few lenders do Bridge Loans, however at IGR Mortgage Servives we have surpassed the status quo of standard bank loans and conventional loans by providing Bridge Loans to Real Estate Investors Nationwide.
Eligible Properties For Bridge Loans
Residential 1 to 4 Units
Residential is classified as single-family and plexes up to four units including condominiums, rowhouses, townhomes and P.U.D’s. At IGR Mortgage we provide funds to investors to purchase, refinance, fix & flip, or hold and rent.
Multi-Family 5 to 100 Units
Multi-family is housing where multiple units (5+) for residential use are in one or more buildings within a community or complex. We provides funds to investors to purchase or refinance with loans amounts of $100K to $5M.
Mixed-Use & Commercial
Mixed-Use is a project that blends residential and commercial uses into one integrated complex or building. Commercial properties include office buildings, retail, strip malls, motels, hotels, retail, senior housing and more.
If you have a question about a Bridge Loan give us a call to discuss the scenario. One ten-minute call may just be the ticket to a fast solution to meet your financing objectives!
IGR Mortgage Services has been providing investors with hard money loan options for over 30 years. We offer Fast & Affordable financing. for investors of every experience level. Call today to or send us your loan scenario to review!