Bridge Loans

Non-Recourse Multifamily and Commercial Property Bridge loan rates and terms fluctuate based on sponsorship, loan amount, property type, leverage and the story behind the necessity for the bridge financing. A few typical uses for bridge loans are: building and construction completion, stabilization, rehabilitation, and borrower/property legal, economic, as well as credit concerns. Construction and rehabilitation rates could be extremely competitive, but the moment you get involved in legal, financial, and credit issues, rates could fluctuate a great deal.

Bridge loans are perfect for repositioning a property in order to obtain competitive permanent financing or sell the property after it is managed to stabilization or the “concerns” impending are remedied.

Multifamily bridge loans can be obtained utilizing Fannie Mae and Freddie Mac loans, CMBS funding or various other bank loans. Many of the comparable options are present with commercial real estate bridge loans generally exclusive of Fannie Mae and Freddie Mac permanent financing options.

Call us today toll-free at (833) APT-LEND to consult with a multifamily bridge loan expert, or complete this form to arrange for a complimentary assessment.

Sample Bridge Loan Terms For
Multifamily and Commercial Property

Size:                  $1 Million and up.

Term:                 6 months to 2 years (extension options available)

Interest Rates:  4.75%+ (for credit and legal issues rates are in the teens).

Amortization:    Generally interest-only

Maximum LTV:   Generally up to 75% of cost (LTC) capped at 70% of the completed or stabilized value.

Advantages:

• Loan amounts are determined by total project cost or completed value and not necessarily on income in place or the as-is value, although in-place income helps drive down rates.
• Fast closing process.
• Available when other portions of the credit market are locked up tight.

Disadvantages:

• Very expensive if the loan is for financial, legal, or credit issues.
• Loans are short-term and generally need to be replaced inside 24 months.