Ever wonder what the magic formula is to get a hard-money loan funded? There is quite a bit of misconception about how a hard money lender (private lender, bridge lender, etc.) underwrites its commercial and residential loans. Many believe that…
Fairview is recognized as the leader in Bridge Loans . There are many misnomers about bridge loans both from borrowers and mortgage professionals. Below are frequent questions I have received about bridge loans:
- What is a bridge loan?
- When is a bridge loan used?
- Why would someone need a bridge loan?
- What should I know about bridge lenders?
- What is needed to get a bridge loan?
- Who are the Bridge Lenders?
- Are there local bridge lenders?
- How can I trust a bridge lender?
- What should I expect from a bridge lender?
The questions above along with many other questions about bridge loans are answered in a recent article that was written by Glen Weinberg (the COO of Fairview Lending) for the Colorado Real Estate Journal. Glen is widely known throughout the country as an expert on bridge loans and non-conventional financing including private lending and hard money lending. Below is an excerpt of the article on Bridge Lending along with a link to the full article. Bridge Lenders: what borrowers/brokers need to know.
As banks continue the strict underwriting guidelines put in place during the recession, many loans are falling out of these guidelines. If one has a non-bankable loan as a result of either the property or the borrower there are options available. One option available is a product called a bridge loan. The premise of a “bridge loan” is to bridge the financing gap for a borrower. These are typically short term loans anywhere from 6 months to 3 years. The idea behind a bridge loan is to provide financing for a borrower to allow time to get into a more conventional product or in some cases buy the borrower time to sell the property. Bridge loans have increased in popularity as the downturn in the economy has created many more unique situations for borrowers including credit issues, tenant issues, etc… Click to continue reading the full article on Bridge loans: Bridge Lender Colorado Real Estate Journal