Residential Bridge Loans: The Benefits of a Residential Bridge Loan

Residential Bridge Loans

If you are a property investor wanting to purchase or refinance a non-owner-occupied residential property or are seeking financing for flipping houses, you’re no doubt aware that there are multiple financing options, such as residential investor rehab loans and hard money loans, to make this happen. One option worth considering for anyone trying to grow their real estate portfolio is a residential bridge loan. A bridge loan is a short-term loan that is generally used to purchase or refinance a property before long-term financing is finalized or before the property is resold or rehabilitated and then resold.

So, why choose a residential bridge loan to fund your rehab investment?

There are a lot of reasons why a bridge loan is a clever way to finance or refinance your residential investment purchase or renovation. Using a bridge loan as a short-term loan for flipping houses or as a real estate construction loan, comes with a huge range of advantages. Here are just a few:

• Bridge loans, including residential investor rehab loans, can be secured quickly – even as fast as a matter of days. This means that you won’t need to miss out on an opportunity that comes up fast.

• Bridge loans are a great option as a rehab home loan for bad credit. At RehabLend, for example, we provide hard money rehab loans to people with a minimum FICO score of 600. So, if you’ve got a less than desirable credit rating, a hard money bridge loan could help keep doors open for you.

• On a related note, bridge loans don’t need income documentation, which means they’re available for people who are self-employed or don’t have an income, such as retirees.

• Bridge loans can help you to purchase a property that traditional lenders generally won’t finance. For instance, if you want to buy a residential property that requires extensive rehab, bridge fix and flip funding gives you the opportunity to stabilize and resell the property without having to use a significant amount of cash.

• Bridge loans for non-owner-occupied properties can also help you to buy, fix and flip multiple properties at the same time. This means with a non-owner-occupied bridge loan you can scale your business and help your portfolio grow at a much more rapid rate.

• Bridge loans offer ultimate flexibility. Given their short-term and flexible nature, bridge loans mean you’re not bound by certain time constraints and therefore can opt for the most effective and lucrative strategy for each individual asset.

• Residential bridge loans can be used for a range of property types including single family homes, multi-family homes, townhouses, condos and mixed-use properties. Thanks to their flexible nature, you can use a bridge loan as anything from an apartment rehab loan to a multifamily rehab loan.

Other things to consider

Of course, like any loan there are numerous risks and factors to consider when deciding to secure a bridge loan, so always be sure to do your due diligence ahead of signing on the dotted line. For instance, bridge loans often come with high closing costs as well as penalties for early payment. Look out for these in the fine print.

Additionally, while short-term hard money loans usually attract higher interest rates than longer term traditional loans, you don’t need to settle for the first rate you see. Compare interest rates across competitor bridge loan lenders to make sure you’re being offered a fair rate.

Another thing to consider is the high costs involved and the fact that your property is held as security. Therefore, you are facing the risk of foreclosure if you cannot meet your repayments or in the event something goes wrong with your finances.

Where to find a bridge loan

There are plenty of options out there for residential bridge loans so it certainly pays to do your research. Here at RehabLend, we are a rehab loan lender offering nationwide residential bridge loans designed to help you secure and maximize the potential of any opportunities that come your way. We offer competitive rates and flexible terms with plenty of features such as cash-out facilities based on your unique needs.

Ready to get started?

If you’ve come across an enticing residential investment opportunity or you are ready to borrow money to flip a house, get started with your enquiries right away and you can have a bridge loan secured within days. To find out more about RehabLend and our competitive direct bridge loans or to get started with our super-fast and super-easy approvals process, click here or contact us at any time. One of our helpful loan officers will get back to you as soon as possible ready to help with whatever you need.