What is a Bridge Loan? A Bridge Loan is a short-term financing solution, often used in both residential and commercial real estate transactions. These loans are designed to "bridge" the gap between immediate financial needs and future plans. Bridge Loans are especially helpful for investors needing flexibility in fix-and-flip projects, or to overcome loan denials. Unlike traditional loans, bridge loans do not require income or employment verification and are based on the properties appraised value and proof of funds to close, along with some reserves. Most programs do not require a credit score, and other programs require a minimum FICO of 620 or higher score may help secure a more favorable interest rate. Typical closing timelines range from 20 to 25 business days. Bridge loans for fix and flip Residential properties and Commercial properties A bridge loan for a fix-and-flip project is primarily categorized as a residential properties, but it can also sometimes be considered a commercial property loan, depending on specific factors. Here's a detailed explanation: Bridge Loan as a Residential Real Estate Properties Residential Properties (1-4 Units): When the fix-and-flip project involves residential properties like single-family homes, duplexes, or small multi-family units (1-4 units), the bridge loan is typically seen as a real estate investment loan. The main objective of a fix-and-flip loan is to quickly purchase, renovate, and resell the property for a profit. This makes it an investment-driven loan, which falls under real estate investment financing. Program Highlights for 1 & 2 year Residential Fix-and-Flips This is a great program for investors that fix and flip properties quickly and sometimes can be extended for up to 2 years if you know will take longer than 1 year to avoid the stress of securing a refinance in the middle of your project, use our 2-year fix and flip loan. We offer acquisition and renovation costs on 2-year fix and flip loans just as we do on our 1-year loans. What Makes our Bridge Loans so Attractive? • No income, No DTI and No FICO with most programs • No prepayment penalty on 1-year Interest-only terms • Full appraisals only required on case-by-case basis • Loan can be extended for an additional year • 100% Rehab Financing • Low rates • Up to 80% LTV for residential and 75% for commercial properties purchases Bridge Loan as a Commercial Property Loan Larger or Commercial Properties: If the fix-and-flip involves larger properties such as multi-unit buildings (5+ units), mixed-use developments, or purely commercial spaces (like office buildings or retail centers), the bridge loan may be categorized as a commercial loan. Why Choose Us? • Competitive Rates: Get the best rates in the market. • Flexible Terms: We offer loan terms that suit your business. • Fast Approval: Our streamlined process gets you financing quickly. • Expert Advice: Work with professionals who understand the commercial real estate market.