Bridge Loans or Hard Money Loans for Real Estate Owners
Clients who own property understand the financial strain managing their buildings and grounds can entail, on top of their current and sudden expenses of running their businesses. Springboard Funding Partners helps our clients in and around metro Chicago, IL and Wisconsin with bridge loans or hard money loans. Commercial real estate owners often use a bridge or hard money loan to assist them when they are dealing with financial or credit-related problems. If businesses need a bridge loan, our job is to ensure they get out of their difficult financial place, acquire funding to keep their current property or buy a new property, and strengthen their financial well-being so that within six to 12 months so that they qualify for a low-interest rate mortgage.
Details About Bridge Loans for Commercial Clients
Lenders typically want a borrower to have a credit score above 640 in most scenarios involving commercial real estate loans. These lenders hold three qualities as most important when determining whether to approve a loan: cash flow coverage, credit score, and loan to value. If you secure a bridge loan, a lender will lend a certain percentage of a property’s appraised value, which is typically 60% to 65%. A bridge loan has rates ranging from 10% to 14%, but only for 12 months. You also don’t deal with pre-payment penalties for at least six months.
How Springboard Funding Partners Helps Borrowers
At Springboard Funding Partners, our goal with every bridge loan borrower is to assist them to improve their credit within six months to finance out of their bridge loan and transition to a traditional lender with a five-year, 4% to 5% fixed-rate and a 25-year term. Our company has a history of success closing bridge loans for clients dealing with foreclosures, including those with past bankruptcies on their credit reports. Clients can pay off years of property taxes and judgments with the proceeds from their bridge loans in many cases. A lender may require interest reserves to cover property taxes and future payments for six to 12 months, but this depends on the lender and client.
Providing Chicago, IL & Wisconsin With Essential Funds
Springboard Funding Partners welcomes clients to discuss their current commercial real estate request with us to find the most suitable option for their situation. We have extensive financial expertise and a wealth of lenders, referrals, and affiliates to work with you.