Hey,
Depending on your requirements and the type of property, you can get different types of loans from lenders. Though, the terms and conditions of each kind of loan and the eligibility criteria are decided by banks and financial institutions. I will share details about the bridge loan in the paragraphs below.
What is a bridge loan?It is a type of short-term loan that is taken by a borrower to fulfil his short-term liquidity requirements. Usually, it is provided for 2 to 3 weeks. If you are someone who wants to get capital till the time funding goes through, you can get a bridge loan.
That was what is a bridge loan in real estate, now read who gives the loan?
There are many private and public banks that provide borrowers with this loan. They give funds till their home loan goes through.
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What is a bridge loan in commercial real estate?This financing arrangement bridges the gap between short-term cash requirements and long-term loans. Builders often take this loan for the construction of their commercial property.
Features :The interest rate is decided according to the repayment capabilities of the borrower. According to my reach, the average interest rate on the loan falls between 8.5% and 10.5%.
This loan is also known as ‘Swing loan’, ‘Interim financing’, or ‘gap financing’.
A bridge loan can be given for a maximum of 12 months.
An asset is taken as collateral in the loan.
These are more expensive than traditional loans.
The loan application process of bridge loans is faster in comparison to traditional loans.
This is all from my end on what is a bridge loan.
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Authors Of The Question
What is a bridge loan ?
Hemant
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2 Year
2022-06-08T18:57:01+00:00 2022-06-08T18:57:02+00:00Comment
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