Are you a real estate investor contemplating your next move? Maybe you’ve found the perfect property, but you still haven’t sold your old one to secure the funds you need. Or perhaps you’re looking to sell a property but require funds to tide you over in the meantime. In either scenario, a Bridge loan might be the ideal solution.
What is a Bridge Loan?
This Non-QM loan option is a form of short-term financing that can help real estate investors like you “bridge” the gap between purchasing a new property and selling an existing one. A Bridge loan is typically backed by real estate and makes you look like a cash buyer. It gives you access to equity from your current property to purchase a new one.
They serve as an immediate source of funding that allows investors to close deals swiftly.
How Does a Bridge Loan Work?
Let’s consider a practical example. Suppose you are in the process of selling Property A and have identified Property B for purchase. However, the sale proceeds from Property A have not yet been made available, and you need funds to secure Property B right away.
This is where Bridge loans for investors can help. It provides the necessary funds to purchase Property B, and once Property A is sold, the loan can be paid off.
Why Should You Consider a Bridge Loan?
- Versatility: You can use the cash from your Bridge loan for different purposes, including debt repayment, covering closing costs, meeting moving expenses, furnishing your new property, making improvements, or renovating the property you’re leaving to enhance its overall value.
- No Monthly Payments: Per lender guidelines like LendSure, there are no monthly payments due on a Bridge loan. It is a single balloon payment due in 6 months or when the property is sold, whichever comes first, with interest accruing during that time.
- No Need for Contingencies: In a competitive housing market, a home sale contingency can put sellers off. A Bridge loan can help you avoid the need for such, making your offer more appealing.
- Deal with Market Fluctuations: If you need to buy a new property but are having trouble selling your old one, a Bridge loan can help. It gives you extra time to sell your existing property, so you can adapt to any changes in the market.
LendSure Bridge Loan Highlights
- Non-Owner Occupied and Second Home:
- Loan-to-Value up to 65% on Bridge loan for loan amounts up to $750,000
- Loan-to-Value up to 60% on Bridge loan for loan amounts over $750,000
Why LendSure?
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We’re redefining the mortgage experience one loan at a time. Thanks to our common-sense approach and dedicated lending team, we say ‘yes’ more often to today’s homeowners and investors.
Ready to reach out to learn more about Bank Statement loans for investors like you? Contact us today!
