About Bridge Loans
Bridge loans are short-term loans that "bridge" the gap between a real estate transaction and the closing of conventional financing or some other type of financial transaction. This type of loan is most commonly used in commercial applications where a business needs to obtain cash quickly but cannot close a loan with a bank for some period of time. In this scenario, they may use a bridge loan for a period ranging from a few days to a few months until they can secure conventional financing through a bank or credit union. Borrowers who seek these temporary loans from private lenders generally must pay a premium interest rate and additional fees for the convenience, and will also be expected to put property (usually real estate or machinery) up as collateral in the deal.
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It may seem obvious, but nobody just googles the term "hard money loan" and gets the money they need for a home or remodel. There is a process to follow, as with any loan. The fact that hard money loans are faster and require less paperwork than a standard mortgage from big banks does not mean that...Read More
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