North Coast Financial is an authority among Los Angeles hard money lenders, with more than 37 years of experience helping real estate professionals obtain bridge loans. Bridge loans, unlike other types of conventional loans, allow sellers to purchase a new home using the equity in the existing one. This allows real estate investors to procure properties without having to meet the stringent financial requirements of commercial banks and credit unions.
How Does a Bridge Loan Work?
Bridge loans are short-term loans used to fund a down payment or all cash purchase of a new property without having to sell an existing one first. Bridge loans allow borrowers to tap into the equity of either an existing or newly purchased property in order to pay off the loan. These types of loan are ideal for real estate investors who lack adequate liquidity but have a considerable amount of equity to borrow against.
Residential bridge loans usually have a higher loan-to-value ratio than commercial bridge loans, and when applying for a commercial bridge loan, lenders may require applicants to provide more documentation than residential loan applicants.
Bridge Loans vs. Traditional Loans
There are many bridge loan lenders, and for good reason. Bridge loans are often more favorable than traditional real estate loans, primarily because they allow sellers to purchase a new property without having to sell an existing one. Bridge loans can be used to purchase both commercial and residential real estate, and once a loan is approved, the borrow will receive access to their funds in just a few days.
A Wealth of Benefits
Bridge loans can provide investors with a wealth of benefits, including fast funding. Commercial banks and traditional financing sources often take weeks to process loan applications, but with a bridge loan, you can purchase your new property quickly, so there is no need to worry about someone else buying the property you want. Get in touch with North Coast Financial today to start the application process.