What is a Bridge Loan?
A Bridge loan is a short-term (usually one to three months) loan advanced to cover the period between the termination of one loan and the start of another. It is arranged generally to complete a purchase (such as a new house) before the borrower receives payment from a sale (of the old house), or before a long-term loan is made available upon fulfillment of its requirements (such as the commissioning of a facility or a plant). Also called bridge finance, bridging loan, or gap financing.
• LOAN AMOUNTS: $1,000,000 to $50,000,000+
• LOAN TYPES: Hard Money, Bridge, Mezzanine, JV Equity, Purchase, Refinance, Renovations, New Construction and Land Development
• GEOGRAPHY: Nationwide
• PROPERTY TYPES: Multifamily, Office, Retail, Industrial, Mixed-Use, Hotels and Entitled Land
• LOAN TO VALUE: Up to 75% of Stabilized Value/Up to 85% LTC
• TERM: 1 – 3 Years
• RATES: 6.9 – 12.5%
• POINTS: 2 – 6+
• RECOURSE: Both recourse and non-recourse options available
• PREPAYMENT: Flexible prepayment options
• CLOSING TIME: Typically, 2 – 4 weeks