| When To Consider a Bridge Loan | | | | Generally involves less paperwork |
| As the name indicates, a lender offers bridge loans in | | | | Gives you extra time while waiting on a specific |
| order to create a financial "bridge" to get the borrower | | | | condition/situation |
| from one transaction to the next. A bridge loan is | | | | Provides a convenient means for a seller to purchase |
| meant to be a shorter term loan that is used for | | | | a new property before selling an existing proptery |
| interim financing while waiting for another transaction or | | | | Cons |
| situation to occur. A bridge loan can take care of short | | | | Interest rates are usually somewhat higher than a |
| term needs while looking for the ideal long term | | | | traditional long term loan, but can still be quite |
| solution. A bridge loan is often used to purchase | | | | competitive |
| commercial or foreclosure real estate, enabling the | | | | Not designed for long term needs |
| borrower to close on a property quickly. Often | | | | Does It Matter if My Lender is a Member of the |
| borrowers utilize a bridge loan until: | | | | Mortgage Bankers Association of America? |
| A property is sold | | | | The Mortgage Bankers Association (MBA) is a national |
| A property is improved or completed | | | | association for professionals in the real estate finance |
| A property can be refinanced | | | | industry, which promotes fair and ethical lending |
| Credit improves or financial situation changes | | | | practices and fosters the professional excellence of |
| A business has resumed or improved, or changed in a | | | | real estate financial employees. |
| specific way that allows for a more permanent | | | | When you need a loan, it is a good idea to select a |
| financing option | | | | lender who is a member of the MBA. This helps |
| What Are the Benefits of a Bridge Loan? | | | | protect you against fraudulent practices and unethical |
| Bridge loans also known as "Swing Loans", "Interim | | | | companies. The MBA is headquartered in Washington, |
| Financing" or "Gap Financing" are generally quick, and | | | | D.C., and invests in communities across the nation by |
| usually require less paperwork than a long term loan. A | | | | focusing on improving the quality of residential and |
| bridge loan can allows you to make a competitive | | | | commercial real estate markets. Lenders who are |
| offer on a property without a contingency clause. | | | | members of the organization receive frequent market |
| Whether you need a loan fast, or just need a | | | | updates, educational training opportunities, and other |
| temporary loan while closing on another loan, a bridge | | | | useful information that can enable them to give clients |
| loan can be very helpful and financially sound solution. | | | | the lowest possible interest rates, and exceptional |
| Pros | | | | service. |
| Designed to be fast and easy | | | | |