WHY KEVIN
Why Choose Kevin Green for Your Residential Bridge Loan?
Kevin has been around serving California’s, Bay Area, San Francisco, San Jose, and Los Angeles for over two decades. We help provide residential bridge loans for those who want to buy a new home before they are able to sell their current home. Our services are customer-oriented and we know the market well, so we are able to assist you with almost any situation.
Not only do we offer residential bridge loans, but we also can accommodate commercial bridge loans as well. We work with investors and property owners throughout the California regions we serve. We provide funding for various properties, including industrial buildings, warehouses, real estate, shopping centers, apartment complexes, and more.
What makes us stand out from the rest is that we take a straightforward, fast, and reliable approach to private loans and hard money. This is what makes investors come to us for the funding they need. Another thing we do is educate you on the different loan types we offer and how they can help you reach success. This is especially helpful if you are new to the business of investing.
READ MORE
Residential Bridge Loan Articles
THE BASICS
What is a residential bridge loan?
Residential bridge loans are short-term loans taken to bridge the gap when buying a new home and selling your old one. Some people want to buy a new home before selling their current one. But because they haven't sold their home first, they don't have the money to put down on the new home. This is where a bridge loan comes in handy. It helps you finance your new home until you sell your old home and can pay it back.
But bridge loans are not only for homeowners to buy a new home before selling their old one, property owners and real estate investors can also use them to borrow against their current property to buy new property.
Because the equity in your currently owned property secures your loan, residential bridge loan lenders don't care too much about your credit score. They focus on the value of your property instead. Not only are lenders for bridge loans less concerned about credit issues they also put less emphasis on your income verification as well when deciding whether to approve you. Thus, the application process is quite simple and you get your funds faster than other loan types. So, a residential bridge loan is ideal for borrowers with less than perfect credit who have enough property equity.
WHERE AND WHAT
Where Kevin lends
With the heaviest concentration in the San Francisco Bay Area, Los Angeles County, Orange County, San Diego County, Sacramento County, Santa Barbara County, Ventura County and the Lake Tahoe basin.
Ten other states
Also Hawaii, Oregon, Washington, Colorado, Utah, Wyoming, Montana, Texas, Florida and New York. Other states case by case. Minimum loan size is $250,000 in California and $1,000,000 outside it.
Property types
Commercial, multifamily/apartment buildings, mixed use, SFR 1-4 units, condos/townhomes, office, industrial, retail, and medical buildings. Special use, land, and construction on a case by case basis.
Business purpose only. Investment, commercial and non-owner-occupied property.
FUNDED
Recently Funded Loans
THE PROCESS
Applying for a residential bridge loan is pretty straightforward. Here is a sample process:
Applying for a commercial hard money loan is pretty straightforward. Here is a sample process:
Contact: Call Kevin at 415-793-3403, or email kevin@privatefundsdirect.com to schedule an initial consultation.
Pre-Qualification: Before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, the lender gathers information about the borrower and property being used as collateral for the loan. The property itself is typically the single most important factor when determining whether or not to move forward in the loan process. Other factors, to a lesser degree, include borrower credit and financial stability.
Filling Out a Loan Application: This is where the application really starts. For some other types of loans, the application takes place a day or two after your pre-qualification. For residential bridge loans, the application takes place on the same day.
Processing: Once the application is finished, your loan will begin processing. If it's required, your credit report will be ordered, and the appraisal on the property that will be used as collateral for the loan is completed. After collecting all requirements, the processor will then submit all the documents to the underwriter for review.
Underwriting: The underwriter assesses whether the risk of lending to you is acceptable. They will review all of the documentation collected by the processor and determine whether or not to approve your loan. Underwriters on hard money loans focus more on the collateral value than on your income or credit, making it easier to get approved.
Approval: Once approved, you will be provided with a commitment letter that tells you all the terms and conditions of your loan. It is important to review and go through this letter with your lender to make sure you understand everything. You will typically need to purchase insurance that covers damage, fire, and theft before the loan closes.
Closing: The final stage is where you will sign all the loan documents and pay any closing costs. After your lender signs all the documents, an escrow agent will hold onto the loan until everything is paid off.
The property is the single most important factor.
Questions on a specific deal? Call 415.793.3403.
BRIDGE VS. BANK
How a Residential Bridge Loan Differs from a Bank Loan?
There are major differences between bridge loans and traditional bank loans. The main difference is that to get a loan from a bank you need to have a good credit rating, whereas a bridge loan doesn't take your credit score into account. Rather, it is secured by the value of the property you are using as equity.
Also, bank loans are usually long-term with a duration of six months to three years, whereas a bridge loan is short-term. Traditional bank loans have lower interest rates than bridge loans. Borrowers can fast-track access to funds with bridge loans but at higher interest rates. Bridge loans are much easier to get as the application process is fast and easy and you usually get your funds within days or weeks.
Benefits of Residential Bridge Loans
If you are competing in a hot market with many other buyers, a bridge loan can be beneficial, as it is seen as more competitive. Bridge loans may remove financial contingencies, and appraisals from your offer. To a seller, they are more desirable as bridge loans are mostly guaranteed to go through, combined with a very quick close.