Bridge Loans for Multifamily Properties
Bridge Loans for Multifamily Properties
Bridge Loans for Multifamily Properties may be a great option for real estate investors looking for short term funding to meet their financial goals. A bridge loan is a short-term loan that is used to finance a real estate transaction while the borrower is waiting to close on a permanent loan for looking to sell the property in less than 3 years. Bridge loans for multifamily properties are used for a variety of purposes, including but not limited to:
- Purchasing an apartment building. Bridge loans can be used to bridge the gap between the time a borrower makes an offer on an apartment building and the time the property would qualify permanent financing closes. This can be helpful if the borrower needs to close on the property quickly, but it would take longer to qualify and close on a permanent financing funding option.
- Refinancing construction debt. Bridge loans can be used to refinance construction debt during a property’s lease-up phase. A property does not qualify for permanent financing until it is stabilized for at least 90 days. This can also be helpful if the borrower needs to lower their monthly payments while the property is still filling up with tenants. Bridge loans are generally interest only payments.
- Financing renovations or other major capital improvements. Bridge loans can be used to finance renovations or other major capital improvements at a property. This can be helpful if the borrower needs to make improvements to the property before they lease them or qualify for permanent financing.
Bridge Loans for Multifamily Properties typically have shorter terms and higher interest rates than permanent loans. However, they can be a valuable tool for borrowers who need to close on a real estate transaction quickly or who need to finance renovations or other major capital improvements and have interim financing until the property and or the sponsor would qualify for permanent financing or sell the property.
Here are some of the key features of bridge loans for multifamily properties:
- Short-term loans. Bridge loans typically have terms of one to three years.
- Higher interest rates. Bridge loans typically have higher interest rates than permanent loans.
- Less stringent lending requirements. Bridge loans may have less stringent lending requirements than permanent loans, making them easier to qualify for.
- Quick closings. Bridge loans can often close quickly, which can be helpful for borrowers who need to close on a real estate transaction quickly.
If you are considering a bridge loan for a multifamily property, it is important to carefully consider your needs and options. Bridge loans can be a valuable tool, but they are not right for every situation. You should work with a qualified lender to discuss your specific situation and determine if a bridge loan is the right choice for you.
FBC Funding offers Bridge Loans for Multifamily Properties including 2-4 unit multifamily properties and 5 or more unit multifamily properties. FBC Funding will also offer the Bridge Loan for Multifamily Properties on mixed use properties that may have a commercial component, such as retail, office space or warehouse. For more information call 888-848-3114 or
Click here to schedule a free loan consultation to determine if Bridge loans for Multifamily Properties are the best option for you.
