If you’ve been following our regular blog updates, you probably have a good understanding of bridge loans and how they work. Once you’ve developed a solid foundation of how they work, you may wish to explore the similarly sounding Bridging Loans, which also serve the purpose of helping a borrower to fill a financial gap.
The majority of Bridging Loans are short term and focused on interest. If you need money quickly or time is critical, Bridging Loans are a good option as they can be agreed upon within a short timeframe. A property closing date is one example of where they may come in handy.
When applying for Bridging Loans, the value of the property and the applicant’s ability to pay back the loan will factor heavily into an applicant’s eligibility. This is also known as an “exit strategy”. Although this is an important factor, it doesn’t matter quite as much as it would if the applicant were applying for a traditional mortgage.
Bridging Loan terms typically range from one year to three years, with an LTV of about seventy percent. An LTV of one hundred percent with additional security may also be possible. These loans have no fees for early repayment.
This update is brought to you by Michael Internoscia, Principal Broker and CEO of hard money lenders Florida company M & M Private Lending Group. We have over three decades of experience specializing in private money real estate loans and we pride ourselves on providing our esteemed clients a service that’s personalized while delivering low rates and closing costs. We also offer mortgage note investments and have worked extensively with brokers and affiliates. Call 305-363-7169 or 954-445-4434 to speak with a lending representative about our Florida private loans or visit our website at http://www.mmprivatelending.com to fill out an application form.