Residential Bridge Loans
Kevin Green is your go-to source for direct private and hard money loans in California. Contact me, so I can help you quickly get the financing you need.
Kevin Green and Ryker Capital is a California-based company. I fund and finance residential and commercial loans for investors and property owners in California. I can help you fund a variety of commercial properties including retail shopping centers, industrial buildings, office buildings, and apartment complexes, warehouses, and more. Check us out today!
Why Choose Kevin Green and Ryker Capital for Your Residential Bridge Loan?
Kevin and Ryker Capital 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.
Residential Bridge Loan Articles
Residential Bridge Loan Rates
Rates from 7.99-12% with points starting at 1.5-3.5% of the loan amount.
1st, 2nd, and 3rd mortgages (case by case).
-
Loans up to 75% of the purchase price, appraised value, or Broker opinion of value
-
No Minimum Fico scores as we look at credit history.
-
Higher LTV”s on a case by case basis with cross collateral.
Residential Bridge Loan Program
Loan Application Approval Timeline
Same day approval on your loan available
Fees
No appraisal fees (in most situations) and no hidden junk fees
Loan Amounts
$100,000 to
$20 Million
Loan Terms
6 to 36 months
Time to Fund Loan
As few as 3-5 days if needed
Loan to Value (LTV)
Up to 75% of current value of property
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.
Owner Occupied Hard Money Bridge Loans
A residential bridge loan owner-occupied is a loan type that allows the borrower to live in the property used for equity. This is something that many lenders don’t offer. Although, some lenders may offer hard money owner-occupied loans. But only for business purposes and not for residential consumers.
The difference between a consumer hard money owner-occupied loan and a business purpose loan lies in what the borrower uses the loan for. If the borrower uses the funds for business-related purposes, like to buy new equipment or for operating capital, it is in the category of a business-purpose loan. If the borrower is using the loan proceeds for consumer-related ventures, such as consolidating personal debt or purchasing a primary house, it is in the consumer loan category.
Most banks prefer owner-occupied loans since they come with little risk compared to second home mortgages and investment properties. Also, owner-occupied financing is underwritten in a different way than investment loans. This is because owner-occupied loans come with lower interest rates, penalties, and fees than investment financing or second home mortgages do. This is what makes owner-occupied loans very attractive and a great option for home buyers.
While an owner-occupied loan may have appealing rates compared to other financing means, there are certain conditions that must be true to be eligible for owner-occupied financing. The main condition is the borrower must live on the premises for at least 12 months for it to be owner-occupied. Otherwise, it may be considered an investment property or a second home, which is underwritten in a different way.
Lending Geography:
All of California, with specific emphasis on the SF Bay Area, Lake Tahoe, Sacramento County, Ventura County, Santa Barbara County, Los Angeles County, Orange County, and San Diego County. Outside of California, I have 1 million dollar minimum loan size requirement. I will lend on purchase or refinance transactions for all types of commercial properties and SFR 1-4 unit owner and non-owner occupied properties. Check list of our lending areas here.
Lending Areas
Lendable Property Types
Property types:
Commercial, multifamily/apartment buildings, mixed use, SFR 1-4 units, condos/townhomes, office, industrial, retail, medical buildings, special use, land, and construction.
Fast and Easy Process for a Residential Bridge Loan
Applying for a commercial hard money loan is pretty straightforward. Here is a sample process:
-
Contact me over the phone. You can reach me at 415-793-3403. You can also send an email at Kevin@rykercapital.com, so you can 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 commercial hard money loans, the application takes place on the same day. The lender will ask you for authorization to check your credit rating (in case it’s required), a letter of explanation stating the purpose of the loan, and bank statements or financial statements as proof of affordability. The lender is required to give you a Good Faith Estimate (GFE). The GFE estimates the loan costs, and it’s required to be given to you no later than three days after your application. Also, a Truth in Lending (TIL) statement must be given to you by the lender. This is a disclosure of the loan’s terms and the interest rate charged for the loan.
-
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. This information — along with verification of employment, income, and assets — will be used to determine if you qualify for the loan. 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. If it’s approved, they will also determine what interest rate you qualify for as well as the terms of your loan.
There are three Cs’ that an underwriter will analyze:-
Credit: Your score, history of on-time payments, and how much debt you carry (your debt to income ratio)
-
Capacity: Your ability to pay off your mortgage based on your monthly income and bills
-
Collateral/Value: If the property is worth as much or more than the amount you’re borrowing
On a typical loan, these three Cs’ are analyzed in detail during the underwriting process. The good news for hard money loans is that underwriters focus more on the collateral value rather than your capacity 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. The process is similar to when you are applying for a loan. After your lender signs all the documents, an escrow agent will hold onto the loan until everything is paid off.
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.