Can You Get a Bridge Loan for a Commercial Property?
If you’re like most prospective real estate investors, you’ve been holding out on purchasing an investment property because of the high interest rates. You might have a good nest egg saved up for your down payment, but is it enough?
Each lender will have slightly different down payment requirements, making it important to understand how your loan type factors into that amount.
What is a Down Payment?
A down payment is money put toward the purchase of a property at closing. Down payments are often expressed as a percentage of the home price, such as 10% or 20%. Your total loan cost will be the property’s purchase price minus your down payment.
The smaller the loan you take out, the lower your monthly payment will be. If you are able to, putting more money down upfront can be a great way to take on a reasonable mortgage payment.
What Factors into Your Minimum Down Payment?
There are a few different factors that can influence your required down payment. For example, your lender might have required downpayment criteria that you need to meet. For example, second homes or investment properties generally require 30%-40% as a down payment, while a primary home purchase requires less of a down payment.
Another factor that plays into your minimum down payment is your cash on hand. Do you have enough money to put 40% down? If you only have enough funds to pay 20% down, you will need to work with a lender and loan program that allows a lower down payment amount.
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.
Do Downpayments Differ by Loan Type?
Simply put, yes. Each loan program might require a different down payment amount.
It’s also important to consider the equity in an existing property. If you currently own a property that has $500,000 in equity, but you only have enough for 10% down on the purchase of a new property, you could benefit from a hard money loan. A hard money loan allows you to access the equity in your current property before the sale of another property is finalized, giving you the funds needed for your new property purchase.
Finding the Right Lender
Understanding the minimum down payment needed to buy a property comes down to your lender. Working with a lender outside traditional financial institutions gives you flexibility in down payment amounts, terms, and accessing equity tied up in an existing property.
To go over how our team at Wilshire Quinn Capital can help you purchase your next investment property, reach out today to set up a consultation and go over your loan scenario.
- 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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