BRIDGE LOAN FINANCING
Flexible Private Lending
Cheetah Capital is a bridge lender who has been providing real estate investors with hard money bridge lending for many years.
Offering fast approvals and funding, competitive rates and reliable service, Cheetah Capital has established themselves as one of the top hard money bridge lenders in Boston but offers its services nationwide.
Hard Money Bridge Lending
A bridge is a type of lending used for short-term financing. Bridge financing typically has a term from 6 to 24 months. Bridge lending rates are higher than traditional institution lending due to the increased risk.
We do check your creditworthiness, but your approval will not be based on just credit since the property itself will secure the funds. This is beneficial for borrowers who may currently have less than ideal credit but have equity in the property.
The bridge’s have a lower loan to value (LTV) ratios than traditional mortgages obtained from banks in order to protect the lender from a borrower defaulting. The bridge lender will generally only allow for a loan to value ratio from 50% to 70%. The amounts available for bridge lending can range from a relatively small amount of $100,000 to jumbo bridge funding in the millions of dollars. The borrower may sell the property or arrange other long-term financings in order to pay off the funds.
Residential Bridge And Commercial Bridge Lending
Residential and commercial gap lending are both gaining popularity as a way to quickly acquire cash in order to take advantage of short-term real estate opportunities. Commercial transactions generally have a lower LTV than residential transactions and will require additional information and documentation. Documentation is not as extensive as a traditional mortgage, closings can range from 1 up to 4 weeks.
This type of funding may also be called a bridging loan, gap financing, interim financing, or a swing loan.
| Loan Application Approval Timeline | Same day approval available | |
|---|---|---|
| Time to Fund | 2 to 4 Weeks Typically | |
| Property Types | Single-family, multi-family, commercial, industrial | |
| Amounts |
|
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| Terms | 6 months to 24 months | |
| Lien Position | 1st | |
| Loan to Value (LTV) | Up to 75% of the current value of property |
How Does It Work?
An example of traditional bridge lending would be when an investor owns a property and wishes to purchase a new property. The investor doesn’t have sufficient funds to purchase the new property but needs to secure the new property before selling the existing property. The investor is able to use gap financing to borrow against the property they already own to raise funds for the purchase of the new property.
Once the new property is purchased, the investor can sell their original property and pay off the bridge loan. The bridge lending “bridges the gap” between the purchase of the new property and the sale of the existing property. If you still have doubts you may want to read this in-depth article or simply call us and we will be glad to answer your questions.
In most cases, we can convert the gap loan into a traditional commercial mortgage with more favorable terms.
Cheetah Capital is an experienced private bridge lender offering hard money loans nationwide. Contact us now to see how we can help you with your real estate financing needs.