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Understanding Bridge Loan Programs

Are you ready to purchase your next investment property?  It can be difficult to confidently look for a new investment property when the transaction is dependent on the sale of your existing property.

This is where a bridge loan can be beneficial, allowing you to put an offer on a new investment property even though your current property still hasn’t closed or sold. It’s important to understand the basics of a bridge loan, who benefits from this option, and how a debt-inclusive bridge loan can be utilized.

What is a Bridge Loan Program?

A bridge loan is a type of short-term financing that allows you to access the current equity in your property before it is sold. Here are a few benefits of a bridge home loan program:

  • Provides flexibility when selling your home, ensuring you don’t have to rush through the closing process.
  • Gives you the ability to act on real deals that hit the market regardless of if your home has closed yet.
  • Helps you receive an accepted offer by removing sales contingencies.
What Questions Should I Ask a Hard Money Lender?

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.

Understanding Bridge Loan Programs

Who is a Bridge Loan For?

A bridge loan is designed for borrowers whose property is already under contract. The underlying equity in the property is what is used for collateral in a bridge home loan. In addition, the individual should be ready to make an offer on another property.

Under a bridge loan program, the borrower can remove existing equity in their property to use as a downpayment for the new property. The equity draw will then be excluded from the debt-to-income calculation. The exclusion only applies if your existing property is under contract.

Here are the general guidelines to qualify for a bridge home loan:

  • Current property is under contract or for sale
  • The loan is short-term, usually less than 12 months
  • Credit score is above 600
  • Debt-to-income ratio does not go over 60%

What is a Debt-Inclusive Bridge Loan?

There is also a debt-inclusive bridge loan that a real estate investor may be able to use. This loan is designed for borrowers whose property isn’t under contract but is listed for sale. The same process is followed with the equity in the existing home being used for the purchase of a new property; however, the equity draw will increase the debt-to-income ratio on the new property. This can preclude certain borrowers from qualifying for the new property.


You shouldn’t have to give up on a potential real estate opportunity because you are waiting on the sale of your existing property.   For more information on whether you qualify for a bridge loan, reach out to one of our team members at Wilshire Quinn Capital at 619-872-6000 or loans@wilshirequinn.com.

  • 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.

Recently Funded Hard Money Loan Transactions

Loan Amount: $15,575,000 Loan Type: Blanket Construction Property Type: Industrial Loan-To-Value: 62% Term: 12 Months
UKIAH, CA Loan Amount: $6,575,000 Loan Type: Purchase Property Type: Self Storage Loan-To-Value: 61% Term: 7 Months BONITA, CA Loan Amount: $3,450,000 Loan Type: Purchase Property Type: Office Loan-To-Value: 61% Term: 18 Months LOS ANGELES, CA Loan Amount: $10,675,000 Loan Type: Refinance Property Type: Parking Structure/Retail Loan-To-Value: 52% Term: 12 Months

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By |February 28th, 2023|Categories: Bridge Loan|Tags: |
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