If you are considering buying a new piece of real estate but feel limited financially because you have not sold your old property, don’t worry. Bridge loan lenders can provide you with fast funding to secure your new home.
Bridge Loan Basics
Before applying for a loan, it is best to understand what it is and how it can help you. These are perfect for people who wish to buy a new property before their current one is sold. In this sense, a bridge loan is essentially a short term funding option for real estate when a buyer needs funding quickly. There are certain facts about these loans you should be aware of, including the following:
- Covers residential properties
- Accomodates commercial real estate
- Short 12-month term length
These loans can also be used in reverse order. For example, if you buy a new property and take out the loan against that one, then you can pay it back once the old property is sold. The full details of probate loans California can be explained when you speak with a lender about applying.
There are not many requirements for these loans, but it is important to be aware of the ones that do exist. Your lender can go into more details for each according to their specific policies. These requirements include the following:
- Financial ability to make payments
- Value in a property
The ability to pay off the loan may be supplied in the form of a W-2, bank statement, tax return or pay stubs. That being said, this is a surface look into your financials to ensure you can make the payments. Your loan officer can tell you exactly what they require.
Secure Your Loan
When you are ready to purchase your new property, speak with a hard money lenders for help with funding. They can walk you through all the details of the loan and help you purchase your new home or commercial real estate.