How Long Does It Take to Get a Bridge Loan?
Are you thinking about passing up your dream property because you have not sold your current property? Before you throw in the towel, have you considered a bridge loan?
A bridge loan is a form of short-term financing that allows you to purchase a new property before you have sold your existing property. The loan repayment period is generally a year, giving you enough time to sell your current property, while still being able to complete the purchase of the new property.
A bridge loan might not be the solution for every real estate investor, making it important to understand the average timeline, key considerations, and how to select the right lender.
What is the Average Timeline for a Bridge Loan?
Bridge lenders are known for their quick processing times. Unlike a traditional loan that can take months to process, a bridge loan can be completed from start to finish in as little as a week. This gives you the opportunity to snag a property that is expected to sell quickly. Each lender will have different requirements that impact the timeline; however, here’s a general outline of what you can expect:
- Application – Bridge loans use the equity in your existing property. Once the existing property is sold, the proceeds are used to pay off the bridge loan, leaving you only with the mortgage of the new property.
- Approval and Funding – The entire process from approval to funding with a traditional loan can take up to 90 days. Bridge loans can take a shorter amount of time, while loans through a credit union or traditional financial institution can take longer.
- Repayment – Bridge loans usually have a term of 12 months. They aren’t meant to finance the property over 30 years. This is because the interest rates generally remain higher compared to a conventional loan. The repayment structure is commonly a balloon payment, which means one lump sum payment on a certain date.
The timeline you can expect depends on the lender you work with. This is why it’s important to start the process early even if you are just considering purchasing a new property.
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.
How Do You Determine if a Bridge Loan is Right for You?
Determining if a bridge loan is right for your situation relies on understanding a few main factors. First, you have to find a property that you want to purchase, and you are confident that your existing property will sell quickly.
If you have less than 20% equity in your property or believe that your property may sit on the market for a while, a bridge loan might not be the best option. To go over your specific situation, reach out to a qualified lender, like Willshire Quinn Capital.
How Do You Find the Right Bridge Loan Lender?
Working with the right bridge loan lender can make all the difference. You want to choose a lender that has the ability to meet your loan requirements on time. If a bridge lender has an average turnaround time of more than 6 weeks, you may want to look elsewhere.
The lender you work with should have clear and quick communication, a seamless application process, and a qualified team. At Wilshire Quinn Capital, we meet all of these requirements and more. Reach out to one of our loan representatives today to see how we can help you purchase your next investment property.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
Interest Rates from 7.5% to 11%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
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.
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