Consult Real Estate Bridge Loan Lenders To Ease The Transition Between Homes

Posted by LelandAOgden on April 7th, 2017

Bridge loans, also known as hard money loans, are temporary loans that help in bridging the gap between the price of a property and the buyer’s new mortgage. It is mostly taken in cases when the existing home of the buyer has not been sold yet. So, the funds gathered with these loans help take care of the down payment for the new home.

Bridge loans for residential real estate provide borrowers with short time solutions for expense obligations. And the biggest benefit of consulting real estate bridge loan lenders is the flexibility that you get to enjoy. You get to quickly close on properties that you desire, complete any immediate renovation works, or even have enough time to be able to find tenants for the property.

Most of the bridge loans are non-recourse. So, the borrowers usually seek repayment of the loan through the property itself. In other words, unlike conventional lenders, the bridge loan lenders don’t require great credit nor income documentation.

• Why bridge loans are better than conventional bank loans?
  Usually borrowed to purchase a hard asset like real estate when time is very limited, bridge loans help you take advantage of the opportunity. Conventional bank loans follow lengthy procedures and are not as flexible as the bridge loan options.
  
  Also, unlike conventional loans, there are no concrete specifications for a bridge loan. That means you can negotiate with your lender for the right loan structure.
  
  

• Three major advantages of bridge loans for real estate investors and new homebuyers

1. Bridge loans would easily make faster execution possible instead of making you wait through several stages, closing in as little as 10 days vs 30 to 45 days.

2. These are often used to buyout partners who wish to pursue other business opportunities.

3. The flexible terms of payment add to the overall appeal of these loans. In times when it is necessary to react quickly to an investment flip or rental buying opportunity, bridge loans are your best bet.

Just like any other loans that you apply for, you should do the necessary homework so that you can be better informed about the different fees and charges that are involved with the bridge loans. Besides, you should also know of the many real estate investment buying benefits that you would get to enjoy when you opt for bridge loan option.

Author’s bio: The author is a blogger. This article is about bridge loans for residential real estate.