Bridge Loans
If you want to buy property but don’t have immediate access to the cash to do so, consider a bridge loan.
At The de Courcy Group, we understand that navigating the real estate market requires agility and access to diverse financing options. Our bridge loans and hard money lending solutions are designed to provide you with the financial leverage needed to seize opportunities promptly.
Is a Bridge Loan or Hard Money Financing Right for You?
Determining the appropriate financing solution depends on your unique circumstances and investment goals. Our team at The de Courcy Group is committed to understanding your needs and guiding you through the options available. We offer personalized consultations to assess whether a bridge loan, hard money loan, or another alternative financing solution aligns with your objectives.
Advantages of Bridge Loans & Hard Money Loans
- Flexible Qualification Criteria: Approval is primarily based on property value, offering opportunities for those with less-than-perfect credit.
- Quick Approval Process: Expedite your investment plans with a faster underwriting process compared to conventional loans.
- Short-Term Financing: Ideal for projects that anticipate a quick turnaround, such as renovations or resales.
Why Choose The de Courcy Group?
With extensive experience in the real estate market, we pride ourselves on delivering flexible financing options tailored to our clients’ diverse needs. Our expertise in asset-based lending ensures that you receive informed guidance and support throughout the financing process.
Common Bridge Loan Requirements
- We’ll need to know what the expected leverage is for the property. In many cases, the Loan-to-Value ratio needs to be above 70-75%.
- We don’t need income information but do need bank statements and credit score information for the borrower.
- An appraisal of the property will need to be done to assess its value.
- You’ll need to provide annual insurance information for the property.
- To understand the stability of the investment, it’s helpful for us to have details for your plan to purchase the property and repay the bridge loan.
Bridge Loan FAQs
We’ve compiled some frequently asked questions and answers to help you determine if bridge loans and hard money lending solutions can provide the financial leverage you need for homebuying success.
Bridge loans are available to a range of people, from real estate investors to homebuyers, businesses to consumers. They can be used to finance various property types, including single-family, multi-family, mixed-use, and commercial property.
Whether you need to relocate your company’s office to a new city before selling your current building, you need to make an offer on a new home before your current one sells, or you need to buy an investment property before you’ve sold another, a bridge loan can help you with the transition.
If your situation and the property qualifies, bridge loans are useful anytime you need temporary financing to help you make the next move with your real estate investments.
Bridge loans provide financing for a specific investment purpose. They cover the costs of purchasing a new property before the sale or another or before you can get long-term financing for the property. For this reason they’re offered with shorter term lengths, meant to cover the timeline of your transition.
They meet unique financing needs to bridge the cash gap by offering flexible qualification requirements based on the value of the property you need to finance. This makes them more accessible than standard loans that require certain income and other documentation that is related more to the borrower’s personal finances than the property itself.
Although your personal income isn’t considered for financing, you will need to share your credit score to get approved for a bridge loan. The minimum requirements vary depending on the situation and can be more flexible than standard banks allow. In many cases a credit score of 680 or higher is often best.
Bridge loans are often interest-only, meaning you pay only the interest charged each month for the term length of the loan. The full amount you borrowed isn’t due until the end of the loan term.
In many cases, you don’t need to make monthly payments during the first few months after closing a bridge loan but will need to from there until you can pay it off completely.
How you pay off the loan will depend on your unique situation. There are a handful of options. For example, you could pay off the bridge loan from the profits you make selling a property you currently own. In some cases, you may be able to refinance the bridge loan to a new loan type that is intended for making long-term payments.
There are closing costs associated with processing any loan, and the costs of a bridge loan are comparable to standard mortgages. They include costs for the lender to service the loan, as well as an appraisal and other fees.
You’ll also need to make a down payment that will be paid at closing. The down payment amount will depend on the specific details of your project and your equity.