Are you struggling to pay the down payment for your new house or other obligations tied to your corporation? A bridge loan might just be the perfect solution for you.
But before you head on a ‘bridge loan lenders near me’ hunt on Google, you must get the complete picture behind the bridge loan concept.
We delve deep into what bridge loans are, how they work, and who can benefit from these short-term loans.
What Are Bridge Loans?
What comes to mind when you hear the term ‘bridge loan’?
Something that bridges a gap or paves the way to a new destination!
Bridge loans do just that. These bridge loans are a short-term financing option that provides borrowers with an immediate cash flow. These borrowers can then use this cash flow to close a real estate deal, put down a down payment for a new house, or used by corporations to make pay off any current obligations.
The main concept behind a bridge loan is to find an immediate cash flow and pay off any expenses and obligations before borrowers can find a long-term financing solution for their expenses at hand.
How Do They Work?
Why would lenders give you a short-term loan and process it so quickly?
Well, these short-term loans are designed to provide finances when some obligations need to be executed instantly, but there are no financial resources available at hand.
Borrowers can use the money to bridge their financial gaps and then repay these loans in a short period (typically, bridge loan lenders offer a repayment period of 12 months).
Should You Consider Applying For A Bridge Loan?
Borrowers may get the option to select from various home financing options. However, bridge loans are perfect for those who’re looking for a short-term and effective monetary solution.
For instance, if a borrower has found the right property and wants to close the deal before selling their previous house, this contingency might prevent them from doing so. Most sellers aren’t inclined toward buyers that don’t have the means to close on a property. This can cause home buyers or investors to lose out on a lucrative deal!
Bridge loans can rescue such investors and buyers from such a scenario. The buyers can provide their house flipping history or their credit histories, submit an application, and get a bridge loan within a few days!
Perks Of Signing Up For A Bridge Loan
Homeowners who’re looking to make an earnest money deposit or putting a down payment can always consider long-term home financing options such as HELOC and home equity loans. However, bridge loans come with multiple benefits that make them worthwhile.
Here’s how borrowers can find so much more than just quick cash flow with bridge loans.
Quick funding process
Since most bridge loans are backed by collateral properties and have been intended for the short term, they feature a quick and efficient funding process.
While home equity loan processing takes anywhere between a few weeks to even a month, lending firms can process bridge loans within 5-10 working days!
This makes for an ideal solution for homeowners or real estate investors who have a short window to secure a real estate deal.
Immediate Cash Flow
Whether you intend to put down a hefty earnest money deposit before closing on a new house or need to pay a down payment before selling your new home, a bridge loan can come in handy during the process.
It provides the borrower with quick cash that they can use to close real estate deals that are time-sensitive. Borrowers can take up bridge loans and get access to fast cash. Moreover, most borrowers resort to taking up a bridge loan while waiting to get a suitable long-term financing option for their real estate property.
Short Repayment Time
Don’t intend to take out a hefty home equity loan and keep repaying it for over 20 years?
A bridge loan will simplify the process for you.
Often, a contingency related to the sale of your old home might ward off the new house’s seller and make you less preferable for the transaction. With a bridge loan on hand, homeowners get the flexibility of paying off any expenses or obligations without waiting on the sale of their current home.
As soon as homeowners find a buyer for their old home, they can repay the bridge loan in less than a year.
Bridge loans are created to accommodate borrowers and provide them with a convenient financing solution.
With bridge loans, borrowers don’t need to wait excessive periods to get an approval or get the funding process moving. Lenders quickly evaluate their applications, financial reports are reviewed by an underwriter, and the funds are released as soon as possible.
Promise Greater Flexibility
Bridge loans don’t come with fixed terms.
Since these loans can be borrowed by anyone, including homeowners, corporations, real estate investors, lending firms can customize them to every borrower’s needs. From setting the terms of the repayment policy to allotting the period for the bridge loan’s repayment, each lender works around a borrower’s financial conditions and obligations to draw up the right terms.
This ensures that borrowers don’t default on the bridge loan and can complete their term loan repayment.
If you need to get in touch with a credible bridge loan lender in Atlanta, Georgia, Commercial Private Equity is your best bet!
The firm works with real estate investors, individuals, and even corporations to lend them bridge loans and commercial hard money loans. Moreover, our company has offered real estate solutions for the last 75 years and has mastered the skill of working out hard money and bridge loan terms according to our clients’ needs. We offer ideal LTVs, feature no application processing fee, and have the lowest interest rates starting at 9.5%!
Give us a call at 404-301-8633 to get more details about our bridge loan lending services in Atlanta, Georgia.