Our bridge loan terms typically range from three months to three years, include floating interest rates and allow some form of early prepayment.
Borrowers choose our bridge loans until standard financing is secured or while they contemplate a property sale or plan a change in ownership structure.
Additionally, a bridge loan can be used opportunistically to execute an operational strategy such as renovating the units and renting them to new tenants at higher rents to position the property more positively for standard financing. This type of short-term financing can be used to provide a borrower with enough time to substantially rehabilitate and stabilize a property with the ultimate goal of positioning it for First National insured or conventional financing.
Consistent cash flows, strong operational history, and the borrower’s net worth and liquidity are key considerations for this type of financing.