Bridge Loans For Construction Refinancing | Fast Approval

Cash-Out Okay

For bridge loans on recently completed property, cash-out is permissible up to 10% of the loan amount or unlimited cash-out if LTV would not exceed 60%. The unlimited cash-out is relevant when there is low or no existing debt on the property. For large loans with cash-out, 2 appraisals may be required.

Fast and Easy

LOW DOC: Tax returns and personal financial statements NOT required. Use our online application here. Target closing is 2 business days after receipt of final appraisal. Loans are interest only and there is NO pre-payment penalty. Use for one house or multiple homes/units including inventory loans. After construction/renovation is complete access 70% LTV or, on a select basis, 75% LTV.

Eligibility

Property Type

Residential only, 1-4 unit single-family or 5+ unit multifamily

Property Status

Has certificate of occupancy ("CO") or local equivalent, TCO may be acceptable

Location

47 states!

Loan Size

$400,000 - $4,000,000

Credit

Minimum credit of 620

Payments

Borrower can select no monthly payments during initial term (accrual)

Non-Recourse

Borrower's choice, reduces maximum LTV

75% LTV

-All states except FL, IL, NY
-Within 3 miles: 50,000+ people OR 5 sales within 12 months at or above 125% of value

-Loan size: $1,000,000+

-Minimum credit: 680

-Financials: Business or at least 1 guarantor has 1 or more of these items: (i) $300,000+ of taxable income in 2 of 3 most recent years; (ii) $10+ million of gross revenue in 2 of 3 most recent years; (iii) $1,000,000+ across bank accounts and publicly traded securities

- Other: No TCOs, No LTV exceptions

Existing Clients

Existing BFI clients are welcome! Up to 75% LTV available but if in a non-contractual extension on current construction or fix-flip loan, LTV on a Bridge may not exceed 60%.

Other

Request a term sheet for greater detail

Structure & Pricing

LTV

70% as standard, subject to adjustment if any LTV Exceptions

Term

6 months + 6 month extension option, OR
9 months + 6 month extension option

Interest Rate

8.5% interest rate if current pay,
9.0% for interest accrual,
Rate subject to increase for items below or ask for waiver if borrowing at reduced LTV: if credit below 720; fewer than 10 homes built and sold in past 10 years across all guarantors; or population projected to decline

Origination Fee

6+6 term: greater of 0.6% or $6,000, OR
9+6 term: greater of 0.75% or $7,500

Extension

At borrower's option, 0.5% fee OR WAIVED subject to sale contract with specific deposit requirements per term sheet. To extend any accrued interest must be capitalized and then pay interest on a current basis thereafter.

Other Costs

Standard appraisal pricing, underwriting fee, and third-party costs (e.g. title expense)

Loan Proceeds

Applied as follows: (1) Repay existing debt plus funds for closing costs. (2) Pay Origination Fee. (3) If relevant, pay broker. (4) Fund an interest reserve for initial term or WAIVED if accrual. (5) Cash-Out unlimited if 60% LTV or lower, otherwise up to 10% of the loan amount. Subject to full recourse and no "Appraisal Issue".

Other

Request a term sheet for greater detail

Bridge Loans

Built but Unsold?

Cash-Out Okay

Fast and Easy

Non-Recourse Option

Buying a house that will tear down later?

Loan Purpose