Information on Hard Money Commercial Bridge Loans
Hard money commercial bridge loans are designed to offer businesses the financing they need until they are able to acquire long term financing. The US Funding Solutions offers hard money bridge loans which are available in different programs. They represent various private lenders. These lenders specialize in hard money lending for the purpose of acquisition of commercial property and refinancing. Properties offered loans include multi-family properties, mixed use properties, offices, warehouses, industrial properties, retail properties, hospitality and special use properties. These loans are the perfect solution to keep the business going before secure long term funding comes along.
The hard money commercial bridge loans through US Funding Solutions are offered up to $15 million with down payments that are as low as 15%. The loan term varies between one to five years and the loan to value ratio is up to about 75%. They offer the loans throughout the US thus are not limited to various regions.
The interest rates depend on the type of loan, the risk profile of the investment and the structure. They vary between 8% and 14%. The hard money bridge loan programs offer a payment method of either interest only or principal amortization and a DSCR minimum of 1.2. Early repayment is allowed but it is reviewed on a case to case basis and to be determined by the lenders.
Security needed is the first mortgage lien and additional collateral repayment is determined on a case to case basis after assessment of the circumstances. This makes it easy to be able to qualify for the loan as only the first mortgage lien is required. There are various deposits expenses to be made together with the initial deposit made in the first payments. These are the third party expense deposits for the acceptance of term sheet, the closing expense deposit for the acceptance of closing letter and the unused expense deposits which is refundable.
There are no charges for the initial underwriting thereby reducing the overall charges for the one taking the loan. The US Funding Solutions is a reliable source of hard money bridge loans. The qualifications vary depending on the specifications given by the private lenders. The loans are secured in real estate and the lenders use the equity in real estate for their business. The private lenders are a good option for a business stuck without finance as they get an opportunity to continue with business.