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Bridge loans: Everything you Need to Know

Seller’s markets, by definition, are not easy for buyers to navigate. If you feel uneasy about purchasing a new home before you secure funds from selling your current home, you aren’t alone. However, it’s not easy to procure a conventional loan for such purchases, and by the time you do, your competition will likely have bought your dream home.

Fortunately, Bridge loans offer a solution.

What is a Bridge Loan?

Individuals use bridge loans to “bridge” the financial gap between purchasing a new home and selling their old one. Ideally, you want to put the profits from the sale of your old toward the purchase of your new home, but the time constraints inherent to conventional loans make it difficult since they typically have more stringent application requirements and a slower approval process.  Bridge loans solve this issue because they are short-term loans with expedited application approval.

How do Bridge Loans Work?

Bridge loans use the equity of your current property as collateral before its sale. The collateral lending model reduces the risk for lenders, allowing them to put less emphasis on variables like credit score, expediting the approval process.

Bridge loans work great for individuals who:

  • Must sell their current property to fund a down payment on a new property
  • Must acquire a new property quickly
  • Are negotiating with sellers that don’t want contingent purchase offers
  • Prefer to purchase a property before putting up their current property
  • Have a purchase closing date following the closing date for the sale of their existing property.
Succeeding in Your First Real Estate Venture

Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.

Succeeding in Your First Real Estate Venture

Bridge Loan Benefits

Bridge loans are excellent options in seller’s markets when opportunities can come and go like lightning, and the competition is thick. Bridge loans give buyers an advantage because they can make offers without contingencies. Offers without contingencies offer a considerable advantage from the perspective of a seller who now has a guarantee that the proposal will come to fruition.

Finally, as stated before, bridge loans allow you to move fast, so you don’t have to worry about profiting from the sale of your current home right away.

How to Get a Bridge Loan to Buy a Property

Traditional lenders will likely take a look at your debt-to-income ratio, your credit score, your income, and the equity in your property. Still, these are secondary factors for bridge lenders in determining approval because they are primarily concerned on the collateral of your property.

Whatever your situation, you may benefit by submitting a simple loan application with Wilshire Quinn. Wilshire Quinn is a trusted and extremely fast bridge lender that offers loans on many different types of properties, including; single-family residences (non-owner occupied), condominiums, apartments, duplexes, and most types of commercial properties. If you are looking for rapid and reliable funding, you can submit your application with Wilshire Quinn today or call 619-872-6000 to speak with a representative about your particular loan request.

  • Funding typically in 5-7 business days
  • Loan Amounts from $200,000 to $20,000,000

  • Interest Rates from 8% to 10.5%
  • Loan Term: 3 – 24 months

  • Commercial & Residential (non-owner occupied) Real Estate

  • Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
  • Foreign National Loans Available

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About Wilshire Quinn

Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.

Recently Funded Hard Money Loan Transactions

Slide Hollywood, California Hard Money Bridge Loan Funded LOS ANGELES, CA Loan Amount: $5,075,000 Loan Type: Refinance Property Type: Multi-Family Loan-To-Value: 64% Term: 12 Months San Clemente, California, Hard Money Cash Out Refinance Loan Funded SAN CLEMENTE, CA Loan Amount: $2,580,000 Loan Type: Refinance Property Type: Single-Family Loan-To-Value: 59% Term: 12 Months BERKELEY, CA Loan Amount: $3,575,000 Loan Type: Purchase Property Type: Multi-Family Loan-To-Value: 68% Term: 12 Months Loan Amount: $12,550,000 Hard Money Loan Funded on Two Hotel Properties in Laguna Beach, California LAGUNA BEACH, CA Loan Type: Refinance Property Type: Hospitality Loan-To-Value: 51% Term: 12 Months Loan Amount: $12,550,000

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