Bridge Loans.

Never miss an opportunity to buy the right investment property. Our bridge loans can provide timely financing to close quickly.

Loan Terms, Fees and Eligibility Criteria

  • Typical Terms

    Minimum loan amount: $100,000.

    Maximum loan amount: $300,000.

    Interest rate: 10% to 14%.

    Maturity: 6, 9 and 12 months.

    Loan-to-value ratio (LTV): 60% to 70%.

    Loan basis: After repairs value (ARV).

  • Fees By Us

    Origination Fee: 3% to 5%, minimum $3,500.

    Application fee: None.

    Underwriting fee: $250.

    Processing fee: $450.

    Extension fee: 1%, minimum $1,000.

    Prepayment fee: None.

  • Fees By Others

    Appraisal: Usually $450.

    Draw inspection: Usually $170.

    Insurance: Per insurer.

    Document preparation: Per attorney.

    Title insurance: Per title company.

    Miscellaneous closing costs: Per title company.

  • Property Eligibility

    Must be free of any liens.

    Must be located in Houston.

    Must be single family, 2-4 unit, or townhome.

    Cannot be a condominium or manufactured home.

    Must be non-owner occupied.

    Must be for investment purposes.

  • Borrower Eligibility

    Minimum Credit Score: 600.

    Minimum of $15,000 in interest reserves.

    LLCs welcomed

    Foreign nationals welcomed

    No bankruptcies in previous 24 months.

    No foreclosures in previous 24 months.

  • Insurance Requirements

    Minimum replacement cost coverage

    Must contain dwelling with vacancy & vandalism riders.

    Must add builder's risk if rehab is over $20,000.

    Must be for a minimum of six months.

    Must be fully paid at (or before) closing.

    Lender must be named as additionally insured.

Frequently Asked Questions

  • A bridge loan is a short-term loan that provides financing to property flippers to bridge the gap between the purchase of a new property and the sale of an existing one. It allows borrowers to access funds quickly and efficiently, ensuring they have the capital needed to seize profitable opportunities.

  • Our bridge loans typically have a short-term repayment period, usually six months and require monthly interest payments during the loan term, with the principal due at the end of the loan term.

  • Interest rates for bridge loans are generally higher than traditional mortgage rates due to their short-term nature and higher risk. Rates can vary depending on factors such as creditworthiness, loan amount, and the property's condition.

  • Eligibility criteria for bridge loans may vary depending on your property. Common requirements include a minimum credit score, sufficient equity in the property being used as collateral, and a solid plan for renovating and selling the property, and your experience in property flipping.

  • To apply for a bridge loan, you will need to talk to a loan manager. We will review your application and may request additional information before approving or declining your loan.

  • Bridge loan limits can vary depending on the property's value and your financial situation. Typically, our bridge loans range from $100,000 to $300,000.

  • The approval process for a bridge loan is generally 24-48 hours.

  • Common documentation required for a bridge loan application includes:

    • Purchase agreement for the new property

    • Sales agreement for the existing property

    • Property appraisal

    • Financial statements, including income and credit information

    • Scope of work for the renovation project

    • Proof of insurance

  • Yes, bridge loans come with various fees, including origination fees, underwriting fees, and appraisal fees. We will provide a transparent loan proposal with the complete fee structure.

  • Yes, bridge loans can be used for various purposes, including purchasing rental properties or acquiring commercial real estate. However, the primary focus of bridge loans is to support property flippers in their quick acquisitions and renovations.