Is a Bridge Loan easy to get?
- Yes, it's easier to get than other loans. Since it's for investment purposes, the lender primarly concerns himself with the project viability and profitability rather than the borrowers personal income and documentation.
How long does it take to get a Bridge Loan approved?
- It depends on the project, but on average as little as 2 days and as long as 2 weeks.
What is the most common example of a Bridge Loan?
- An investor buying a property, and they intend to renovate it and sell it. The Bridge Lender typically will lend up to 65% of the future value of the property. What they call ARV (After Repair Value).
What is the typical interest rate on a Bridge Loan?
- Market rates change constantly, at this time rates are approximately 8.99 to 9.99%. It truly depends on the strength and the project location. Generally, the interest rate is dependent on the risk level of the project itself.
What are the risks of a Bridge Loan?
- the risk is that it is a short-term higher interest rate loan.
What is the advantage of a Bridge Loan?
- It is faster to get, and more people can be qualified even if they have a lower credit score and financial instability. And cannot document their personal income fully.
How do I pick the right Bridge Lender for my project?
- You should always work with an experienced lender who can help you analyze your project to ensure profitability, and thus reduce your risk of doing all the work and not earning money at the end of the project. The lender should accompany you throughout the project and provide you with helpful information