What is a Bridge Loan?
Short-term (usually one to three years) loan purpose – 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 – for construction or rehab of a property. Also called bridge finance, or gap financing.
Creative uses of Bridge Loans:
1. Allows for purchase of property and gives Borrower up to 36 months to improve his credit score and obtain permanent financing.
2. Puts property in Borrowers name which allows for costly rehab needed to secure long-term Bank Loan. Borrower investment is protected
because the property is in Borrower’s name.
3. When a property is in Borrowers name they may use the equity in the property to draw cash out, some loans have no seasoning requirements
and cash can be drawn out at the purchase of property closing.
4. Usually no pre-payment fee on Bridge Loans.
Are you looking for a Bridge Loan in Florida?
Quick Close Loans has the most affordable closing costs due to the fact that most our lending is based on low-doc and no-doc requirements. Therefore, the borrower is not paying for the multitude of Bank required documents. The borrower will have a much lower closing cost.
Quick Close Loans primary commitment is to process and close our customers business commercial loans FAST. Some say we close our loans at Warp speed, (1-3 weeks).