Bridge Loans are widely used in commercial real estate to make down payments for new properties. It typically has a higher interest rate than traditional loans and also higher fees and closing costs due to its short-term nature. However, it is useful for borrowers who need to do it quickly for housing markets.
There are several types of Bridge Loans that are designed for each specific need and here are some of the common types of Bridge Loans:
1. Real Estate Bridge Loans – It is used to finance the purchase of a new property while waiting for the existing property to sell. It is commonly used for those who are engaging in real estate business.
Business Bridge Loans – It is a short-term loan that is used by businesses to cover capital needs or to bridge the gap between rounds of financing.
2. Hard Money Bridge Loans – It is a short-term loan provided by private lenders to typically secure their real estate and other assets.
3. Swing Loans – It is a short-term loan to bridge the gap between the purchase of a new property and selling an existing property.
4. Construction Bridge Loans – It is used to finance construction projects and is typically short-term loans that need to be refinanced once the project is completed, and permanent financing is secured.
5. Purchase Money Bridge Loans – It is used to finance the purchase of the new property while the borrower waits for an existing property to sell. It is typically used in situations wherein the borrower finds a property that they don’t want to lose to another buyer while waiting for their existing property to sell.
Every bridge Loan has its unique features and requirements. Borrowers must carefully consider which type of bridge loan is best for their needs.
At Century Capital we can help you out to bridge your financing needs for your commercial real estate needs, with at least 2 weeks closing ratio, and can give you a loan commitment within 48 hours reach us at https://lnkd.in/gQEY6JxT for faster transactions you can always contact us at 201-880-7850 ext 102 or email us at victor@centurycapitalfinance.com and info@centurycapitalfinance.com
