Bridge Loan Financing

Bridge Loan Financing

Offering fast approvals and funding, competitive rates and reliable service, Affordable Loan Company has established themselves as one of the top hard money bridge loan lenders in the UK but offers its services worldwide.

A bridge loan is a type of loan used for short-term financing. Bridge financing typically has a term from 6 to 24 months. Bridge loan rates are higher than traditional institution loans due to the increased risk.

We do check your creditworthiness, but your approval will not be based on just credit since the property itself will secure the loan.  This is beneficial for borrowers who may currently have less than ideal credit but have equity in the property.

These loans have a lower loan to value (LTV) ratios than traditional mortgages obtained from banks in order to protect the lender from a borrower defaulting. The bridge loan lender will generally only allow for a loan to value ratio from 50% to 70%. The loan amounts available for a bridge loan can range from a relatively small amount of $500,000 to a jumbo bridge loan in the millions of dollars. The borrower may sell the property or arrange other long-term financings in order to pay off the loan.

Residential Bridge Loans And Commercial Bridge Loans

Residential and commercial gap loans are both gaining popularity as a way to quickly acquire cash in order to take advantage of short-term real estate opportunities. Commercial transactions generally have a lower LTV than residential transactions and will require additional information and documentation.  Documentation is not as extensive as a traditional mortgage, closings can range from 1 up to 4 weeks.

This type of loan may also be called a bridging loan, gap financing, interim financing, or a swing loan.