WHAT IS A BRIDGE LOAN?
A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively high interest rates, and are usually backed by some form of collateral, such as real estate or inventory.
A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively high interest rates, and are usually backed by some form of collateral, such as real estate or inventory.
KEY TAKEAWAYS:
• A bridge loan is short-term financing used until a person or company secures permanent financing or removes an existing obligation.
• Bridge loans are short term, typically up to one year.
• These types of loans are generally used in real estate.
• Homeowners can use bridge loans toward the purchase of a new home while they wait for their current home to sell.
Keep in mind that all commercial loan quotes depend on several underwriting factors including the property and borrower location, loan-to-value (LTV), debt service coverage ratio (DSCR), property usage (investment or owner-occupied), property type, and the borrower’s financial strength. The interest rates below should be considered indicative for properties in primary markets with good LTVs and DSCRs, as well as a strong and experienced sponsor. However, because we offer so many loan programs, actual interest rates may be higher or lower than what is listed below.
We at Christopher J Mokler & Associates – KW Commercial are here to help you with your Commercial and Investment Real Estate needs. Feel free to reach out to Chris Mokler at 920-279-6104 or chris@cjmassociates.org for a no obligation sit down!