As the name suggests, bridge loans serve as a “bridge” between periods of long-term financing. Bridge loans are short-term loans that can be closed quickly and often with minimal documentation. With our large network of commercial bridge loan lenders, we are able to offer quick closings and immediate access to cash so that you can capitalize on any investment opportunity. Niche Loans specializes in bridge loans and other commercial funding solutions throughout Oakland, California.
Bridge loans are asset-based loans meaning the loan is secured by the property being financed. Bridge loan lenders are therefore less concerned with credit worthiness of the borrower and can often qualify someone with very little documentation and stated income. These requirements might make a bridge loan easier to obtain for many, but loans are generally limited to between 65% and 75% of the property’s value. This is to minimize a lender’s exposure and risk as well as to ensure the borrower has some “skin in the game.” You will be expected to provide the remainder of the funds needed to purchase the property.
Typical terms for a bridge loan range from a few months up to 2 years. At that point, the property is either sold or long-term financing is secured. Due to the short-term nature of the loans, the limited borrower documentation and qualifications, rates tend to be a bit higher than traditional long-term financing. Rates will typically vary between 7% and 12% depending on the specific scenario. Bridge loans are highly customized and the rates can vary greatly from one project to the next.
Bridge loans can be used for the purchase or refinance of various properties including office buildings, multifamily properties, retail property, hotels, industrial buildings, storage facilities, and more. Most property types can be financed with a commercial bridge loan.
Niche Loans specializes in closing these complex transactions that no other Oakland lender can. This is achieved through a consultative and analytical approach to evaluating each and every borrower’s unique financing needs. In doing so, Niche Loans can deliver funding solutions when other lenders simply cannot. Contact Niche Loans to go over the details of your scenario to see how we can help you today!