Bridge Loans

What are Bridge Loans?

Bridge Loans are a short-term loan product for real estate investors who need to bridge the gap until they are ready to secure conventional long-term financing. Funds are usually used to purchase a residential, commercial, or mixed-use property that does not require any renovations.

Who Can Benefit from Bridge Loans?

Bridge Loans are ideal for several scenarios:

• A borrower needs to close quickly in order to take advantage of an investment opportunity prior to refinancing with a conventional long-term loan.
• A borrower needs to close on a new investment property prior to completing the sale of another property.
• A borrower needs to “season” or stabilize an investment property prior to refinancing with a conventional long-term loan.
• A borrower may not qualify for a loan from a conventional bank. A bridge loan allows them time to meet the criteria to be approved by a conventional bank.