What is a Bridge Loan?

What Is A Bridge Loan?

A bridge loan is a short-term loan, usually 6 to 24 months, used until a borrower secures permanent financing for their real estate. Bridge loans are driven by the asset valuation instead of the borrowers’ credit or financial position and typically have faster approval and funding timelines than conventional loans. Bridge financing allows the borrower to quickly meet current obligations by providing immediate cash flow.

Why Use A Bridge Loan?

A bridge loan is one answer to some of the regular challenges borrowers face when financing real estate.

For instance: 

  1. You want to buy an investment property but don’t quite have enough money and traditional bank financing is not available and you want to close quickly.
  2. You applied for a loan with another lender and the loan dollars were cut and you need money quickly.
  3. You found a great property and you want to compete with all cash offers.
  4. You have bad credit and need some extra cash and traditional financing is not an option.
  5. You don’t show income on your taxes and don’t qualify for traditional financing.
  6. You have equity in properties you currently own and want to access it to purchase a new property.

How Do Bridge Loans Work at Fidelity Private Lending?

With a bridge loan from Fidelity Private Lending, you will receive the funds you need within your time frame.   We do bridge financing by lending our own capital based on the value of the asset.  We also develop a strategy with the borrower to do a take-out loan into conventional financing in the future and can facilitate that process for the client to ensure they end up with the best conventional rates and terms available in the market.

Our Process

With only one signature needed and closings in as little as 10 days, we facilitate the loan process in five easy steps:

  1. Originate the loan with a phone call, email, or by CLICKING HERE
  2. Receive your Conditional Loan Approval same day
  3. Submit the requested paperwork FOUND HERE
  4. Third-party reports are ordered and loan documents are drafted
  5. Sign loan documents and close in your time-frame

To Learn More About Our Bridge Loan Programs, Please Fill Out The Form Below