Apartment Bridge Loan
Very often, a property does not qualify for traditional lender programs for various reasons including: vacant properties, properties with un-stabilized occupancy, properties in need of major repair or remodeling, properties that do not cash flow or are underperforming, or loans that must close with a very quick timeline. These loans are very often best served by a bridge loan. Bridge loans are short-term loans, usually at higher rates than traditional financing that allow the borrower the time and money to reposition a property in order to qualify for traditional bank loans in the future. Some of the benefits of a bridge loan include:
Locations
Nationwide
Property Types
All property types considered
Loan Amount
$1,000,000 and up
Loan Term
12 – 36 Months Interest Only
Loan to Value
Up to 75% LTV
Typical Situations
Lease-ups, Repositioning or transitional properties, Foreclosure purchases, Discounted payoffs (DPOs), Cash-out financing, Tight closing deadlines, Refinancing of maturing loans, Properties exiting bankruptcy, Partner buyouts, Hard money loans (considered on a case-by-case basis.)
DSCR
Cash flowing and non-cash flowing properties
Processing Fee & Expense Deposit
Expense deposit required to cover 3rd party reports and underwriting fees
Reserves
Tenant improvements, Leasing commissions and Capital expenditures may be escrowed
Sponsor/Borrower
Personal credit score of 675 or better
Borrowing Entity
Operating entity occupying the property or special purpose entity
Recourse
Non Recourse
Assumability
Not assumable
Prepayment
Determined on a case by case basis
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A three year journey
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