Best Bridge Loan Lenders: A bridge loan is a familiar loan program to homeowners or real estate business owners. Generally, the term of a bridge loan is around 3 weeks to 24 months, maximum of 3 years. This type of loan program helps the borrower to meet current obligations by providing immediate cash flow. But the interest rate of a bridge loan is a little higher than a traditional bank loan.
However, there have dozens of bridge loan lenders over the USA but it is really not easy to find out bridge loan lenders with better rates and terms. Because most of the lenders don’t lend loans directly. They lend money via brokers. As a result, the borrower has to pay various fees including broker fees, processing fees. And the interest rate rises 10 to 15 percent from the actual rate.
Hi, this is Mike McGuiness. I am a real estate broker and funding advisor. I worked with more than 20+ online lenders. Today in this article I am going to introduce you to the top 7 direct lenders who offer bridge loan programs, with better interest rates and as well better terms.
Briscap is one of the well-known mortgage lending companies in the US. They offer 16 different types of loan programs. That’s pretty cool. The lending company lends up to 50 million. The interest rate is anywhere between 5% to 7.5% and leverage to 90% LTV (loan to value). The loan program they offer for apartments, retail stores/malls, offices, hotels, industrials.
The application process is very easy and simple and requires minimum paperwork. You can simply apply for a bridge loan by visiting Briscap’s website. The lending institute is located in Birmingham, Michigan.
2. Octagon Finance LLC
Octagon Finance is specialized in bridge loan programs. The lending company lends up to 100 million+ as a bridge loan. So if you are looking for a lending institute or lender who can offer more than a 50million+ then you can take a look at Octagon Finance. But their payback term is anywhere between 1 month to 36 months. If you are looking for more payback terms then you should go for next. But if you need more you can discuss it with them.
The loan program they offer to developers of real estate properties that qualify for federal and state markets, low-income homes, municipal tax credits. All the funding processes in-house. The Octagon Finance is located in Charlottesville, Virginia. It was founded in 2017 by Paul Winteridge and Sol Thacker.
3. PSG lending
If you are looking for a small amount of bridge loan link anywhere between 1 million to 10 million then you can take a look at PSG Funding. PSG Funding offers real-estate collateral-based loans and lends up to 70% Loan To Value and 85 percent Loan To Cost.
The lending company claims they have the ability to close in as little as 6 days. All the funding processes are done in-house. Besides bridge loans, they also offer construction loans, rehabilitation loans, single-family residential, and commercial loans. But the payback term they offer is less than Octagon Finance. PSG Funding’s bridge loans payback term is anywhere between 6 to 18 months. But there have 6-month extensions available at market fees.
4. AVANA Capital
AVANA Capital is one of the well-known and established lenders. The lending company founded in 2002. They offer construction loans, bridge loans, and SBA loans to purchase or build commercial properties and equipment.
AVANA Capital lends up to 75 percent of the as-complete value of your project. Their payback term for bridge loans is anywhere between 12 to 36 months. The lending institute claims they close a file within 10 to 30 days. The AVANA Capital is based in Peoria, Arizona. If you are looking for a bridge loan or want to learn about their programs, you can simply apply through their website or call them.
5. Quick Lending LLC
Quick Lending LLC is one of the leading lending companies in the US. The lending institute is located in Houston, Texas. The lending company offers 5 different types of loans including bridge loans. The interest rate is between 9.99 to 13 percent. And they provide a maximum loan to value ratio of 75%.
Getting a loan for Quick Lending LLC is easy and simple. You just need to apply for the loan amount or program you want. One of their funding managers will contact you and ask for minimum paperwork. If you like the rate terms just submit your papers and get funded.
6. North Coast Financial INC
Last but not least North Coast Financial INC is another old and well know lender based in California. It was founded in 1981. The mortgage lender offers 12 types of loan programs. Their interest rate is generally between 8 to 10% and offers loan to value ratio up to 75%.
If you are looking for a direct lender who lends bridge loans, then you can work with North Coast Financial INC. If you have extra money and want to invest then you can also work with them.
7. Liberty Financial
If you are looking for a bridge loan lender where you can apply online and all the loan programs have done in-house then you can work with Liberty Financial US. All most all kinds of term loans, mortgage loans are avaialable at Liberty Financial Liberty Financial. They can finance up to 90% of the appraised value and their payback term is anywhere between 3 to 9 months. And the closing cost is less then most other online bridge loan lenders.
What is Bridge Loan?
A Bridge Loan is a kind of short-term loan program for homeowners and real estate developers. It is also known as gap financing, interim financing, swing loans.
Bridge loan interest rate
The interest rate varies from lender to lender. Generally, a bridge loan interest rate is between 7% to 10%. Sometimes it could be a little less or more. But if you work with a broker then it will be higher than a direct lender’s rate.
Best Time To Take A Bridge Loan
Remember if you take a loan you have to pay it back in a certain time with a minimum interest rate. Here is some idea about the best time to take a bridge loan:
- If you are a real estate business owner, then always make sure the new home you are going to buy has a good market value.
- If you are not able to afford the down payment.
- Take a bridge loan if you want to close your home before selling your current home.
- When you have better options like limited offers on inventory and other business resources.
- You don’t want to sell your current home but buy a new home that has a better market value.
Always try to work with a direct lender. It will help you get a better rate and terms than a broker. Here we have just given you an idea, you can take a look at other bridge loan lenders. Choose the lender who offers a better rate and terms. Experts always suggest not to take a loan until you can not manage your finance. But if you take a loan for purchasing a new home you will get a ride of Tax.