A bridge loan is primarily used as a short-term solution to finance real estate until permanent financing is secured.
It can also be used in cases when your client:
- Requires financing over $2M
- Wants to acquire a new property while they wait for their existing property to sell
- Has a contractual obligation that requires a fast closing
- Is purchasing land and is pending approval for a construction loan
- Is buying a new construction condo or condotel that is not Fannie-Mae approved (Non-warrantable condo)
- Is a foreign national with unverifiable income and no U.S. credit history
- Does not meet debt service coverage ratio to qualify for DSCR loan