Minnesota Home Loans Bridge Loans
Bridge loan is an immediate, short-term loan, one to sixty months,
usually made in anticipation of intermediate or long-term financing.
Pay back the bridge when permanent financing is in place with no
prepayment penalties .
Bridge loans "bridges" two different types of cash gaps.
The first "bridge" is a loan that institutional banks
refuse to approve. The second "bridge" is for the individual
investor or company who is between deals and requires immediate,
short-term funding until a traditional loan is issued.
- Use the equity in your current home to buy or build
your new one
- only payments for six months
- Low closing costs!
- Quick closings!
An owner of a $2,600,000 office building in excellent condition,
with a good positive cash flow, needs $800,000 to pay the IRS within
15 days. He is willing to sell this property for $800,000 down to
pay off the IRS. The prospective buyer is property rich but cash
poor, and cannot raise this amount of cash within this time period
through conventional means. To take advantage of this very narrow
window of investment opportunity, the buyer obtains the $800,000
bridge loan within 10 days to quickly secure property title. The
buyer then paid back the $850,000 within 30 days with no prepayment
penalties when loans from conventional sources came through.