Get the short-term financing you need to buy a home, even if you don't meet all the qualifications for a conventional mortgage.
YES, to Bridge Closings in LLC
What is a bridge loan?
A bridge loan is a type of short-term loan that is typically used to finance the purchase of a new home or business. Bridge loans are usually made by private lenders, such as banks or investment firms, and they are typically backed by the borrower’s personal assets, such as their home or business. MCF Mortgage offers a 5-year, Interest-only mortgage that balloons at the end.
What are the terms of a bridge loan?
The terms of a bridge loan can vary depending on the lender, but they typically have a shorter repayment period than traditional loans. Bridge loans also typically have higher interest rates than traditional loans. The length of the loan and the interest rate will be determined by the lender based on the borrower’s creditworthiness.
What are the risks of a bridge loan?
The biggest risk of a bridge loan is that the borrower may not be able to repay the loan in full when it comes due. If this happens, the lender can foreclose on the borrower’s home or business. For this reason, it is important to make sure that you can afford the monthly payments on a bridge loan before you take one out.
What are the benefits of a bridge loan?
Bridge loans can be a great financing option for small business owners who need to quickly expand their businesses but don’t have the time to wait for traditional lending institutions to process their loan applications. Bridge loans can also be used to finance the purchase of a new home or business.