Short Term Bridge Mortgage Loan Programs
Short term bridge mortgage loan programs are typically used by borrowers who need to finance the purchase of a new property while they are in the process of selling an existing property
Short Term Bridge Mortgage Loan Highlights
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Property types: Short term bridge mortgage loan programs are typically available for residential and commercial properties, including single-family homes, multi-family buildings, office buildings, retail properties, and more.
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Loan amounts: Short term bridge mortgage loan programs are typically offered for loan amounts ranging from $100,000 to $10 million, depending on the loan program and the borrower's qualifications.
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Loan terms: Short term bridge mortgage loan programs typically have loan terms ranging from six months to three years, with most loans falling in the 6- to 18-month range.
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Interest rates: Short term bridge mortgage loan programs typically have higher interest rates than traditional mortgage loans, with rates ranging from 6% to 15%, depending on the loan program and the borrower's creditworthiness.
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Maximum LTV: The maximum loan-to-value (LTV) ratio for short term bridge mortgage loan programs typically ranges from 65% to 80%, depending on the lender and the property type. This means that borrowers may be able to finance up to 80% of the property's value, but they will need to provide a down payment of at least 20% to qualify.
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Repayment: Short term bridge mortgage loan programs are typically interest-only loans, meaning that borrowers only pay interest on the loan during the term of the loan. The principal balance is typically due in full at the end of the loan term
Overall, borrowers should carefully consider their financial situation and their plans for the property before applying for a short term bridge mortgage loan program.
