Top 7 Bridge Loan Lenders in 2021 in The US (Rate & Terms)
Best Bridge Loan Lenders: A bridge loan is a common loan program for homeowners and real estate business owners. The term of a bridge loan is usually around 3 weeks to 24 months, but no longer than 3 years. By providing immediate cash flow, this type of loan program helps the borrower meet current obligations. However, a bridge loan has a higher interest rate than a traditional bank loan.
While there are dozens of bridge loan lenders in the United States, it isn’t easy to find bridge loan lenders with better rates and terms. Most lenders do not lend directly to borrowers. Money is lent through brokers. As a result, the borrower has to pay a variety of fees, including broker fees and processing fees. The interest rate rises 10 to 15 percent from the actual rate.
Hello, I’m Mike McGuiness. My profession is that of a real estate broker and funding advisor. I have worked with more than 20 online lenders. In this article, I will introduce you to the top 7 direct lenders who offer bridge loan programs with better interest rates and terms.
Briscap is one of the most well-known mortgage lending companies in the US. The company offers 16 different types of loans. I think that’s pretty cool. Lending company lends up to 50 million. The interest rate is in the range of 5% to 7.5% and the leverage is up to 90% LTV (loan to value). They offer loans for apartments, retail stores/malls, offices, hotels, and industrial buildings.
The application process is simple and easy, and very little paperwork is required. By visiting Briscap’s website, you can apply for a bridge loan. Birmingham, Michigan, is the location of the lending institute.
2. Octagon Finance LLC
Octagon Finance specializes in bridge loan programs. As a bridge loan, the lending company provides up to $100 million. If you are looking for a lending institute or lender who can offer you more than 50 million, take a look at Octagon Finance. However, their payback term ranges from 1 month to 36 months. If you want more payback terms, then go for next. If you need more, you can discuss it with them.
They offer a loan program to developers of real estate properties that qualify for federal and state tax credit, low-income housing, and municipal tax credits. Funding is handled entirely in-house. Octagon Finance is based in Charlottesville, Virginia. Paul Winteridge and Sol Thacker founded it in 2017.
3. PSG lending
If you need a bridge loan for a small amount between 1 million and 10 million, check out PSG Funding. PSG Funding offers real estate collateral-based loans up to 70% Loan-to-Value and 85% Loan-to-Cost.
The lending company can close in as little as six days, according to reports. All funding processes are handled in-house. Aside from bridge loans, they also offer construction loans, rehabilitation loans, single-family residential loans, and commercial loans. Octagon Finance, however, offers a shorter payback period. PSG Funding offers bridge loans with payback terms ranging from 6 to 18 months. There are, however, 6-month extensions available at market prices.
4. AVANA Capital
Avana Capital is one of the most well-known and established lenders. In 2002, the lending company was founded. To purchase or build commercial properties and equipment, they offer construction loans, bridge loans, and SBA loans.
Avana Capital lends up to 75 percent of the project’s value when it is completed. Payback terms for bridge loans range from 12 to 36 months. The lending institute says they close a file within 10 to 30 days. Avana Capital is based in Peoria, Arizona. You can apply through their website or call them if you are interested in learning more about their bridge loans or programs.
5. Quick Lending LLC
One of the leading lending companies in the United States is Quick Lending LLC. Houston, Texas, is the location of the lending institute. A lending company offers five different types of loans, including bridge loans. Interest rates range from 9.99 to 13 percent. They offer a maximum loan to value ratio of 75%.
It is easy and simple to get a loan from Quick Lending LLC. All you need to do is apply for the loan amount or program you want. A funding manager will contact you and ask for minimal paperwork. Just submit your papers and get funded if you like the rate terms.
6. North Coast Financial INC
Lastly, North Coast Financial INC is another old and well known lender based in California. The company was founded in 1981. There are 12 types of loan programs offered by the mortgage lender. Generally, their interest rate ranges between 8 and 10% and they offer a loan-to-value ratio of up to 75%.
North Coast Financial INC is a direct lender that lends bridge loans. If you have extra money and want to invest, you can also work with them.
7. Liberty Financial
Liberty Financial US has all types of term loans, mortgage loans, and bridge loans, so if you are looking for a bridge loan lender where you can apply online and everything is done in-house, you can contact them. Their payback period is anywhere between 3 and 9 months, and they can finance up to 90% of the appraised value. The closing costs are lower than those of most other online bridge loan lenders.
What is Bridge Loan?
A Bridge Loan is a type of short-term loan for homeowners and real estate developers. It is also known as gap financing, interim financing, and swing loans.
Bridge loan interest cost
Interest rates vary from lender to lender. An average bridge loan interest rate is between 7% and 10%. It could be a little less or a little more. But if you work with a broker, the rate will be higher than a direct lender’s.
Optimal Time To Take A Bridge Loan
If you take out a loan, you will have to pay it back in a certain amount of time with a minimum interest rate. The best time to take out a bridge loan is when:
- In case you own a real estate business, make sure the new home you are going to buy has a good market value.
- If you cannot afford the down payment.
- If you want to close your home before selling your current one, take out a bridge loan.
- You have better options like limited inventory offers and other business resources.
- You don’t want to sell your current home, but rather buy a new home that has a higher market value.
Try to work with a direct lender whenever possible. You will get a better rate and terms than a broker. You can also take a look at other bridge loan lenders, we have just given you an idea. Choose the lender who offers the best rate and terms. It is always recommended not to take out a loan until you cannot manage your finances. In contrast, if you take out a loan to purchase a new home, you will be exempt from paying taxes.
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