Using a Bridge Loan for your business or investment financing is often necessary and incredibly useful for various situations. It can help you move on the house of your dreams quickly before your previous property has sold, take advantage of a deal that will not last long on the market, or help your business gain its footing. Seize the day and take advantage of our bridge lending options to help you achieve your goals. Contact us at Abbey Mortgage & Investments today!
What are bridge Mortgage loans?
Bridge loans are sometimes known by many other names that, for the most part, all mean the same thing. A Bridge Mortgage Loan is a short-term loan that provides you immediate funds when you need it, but at a higher interest rate than traditional financing.
Bridge financing options are available in two main types: commercial and investment property bridge lending. As the names suggest, commercial bridge financing is granted to businesses and organizations, and loans against investment properties are for residential investment properties. To learn more about bridge financing, or to apply, contact us at Abbey Mortgage & Investments in Colorado today!
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Use Abbey Mortgage Bridge Loan Funds
- We offer our own, in-house funding
- We have been improving year over year since we started back in 2006
- We offer both commercial bridge financing and residential bridge financing to meet your needs
- We serve a vast majority of Northern Colorado communities
- We make sure to treat each borrower as an individual with unique situations and needs
Reach out to us at Abbey Mortgage in Colorado to learn more or to start your bridge financing process today!
Colorado Bridge Financing
Bridge financing is an important aspect of what we do here at Abbey Mortgage & Investments in Colorado. But what, exactly, are they and how do they work? On this page, you’ll find information about what bridge loans are, the different types of bridge lending options, what they’re used for, pros and cons, and more!
Commercial Bridge Lending
Commercial bridge mortgages are structured and made primarily for businesses looking for commercial real estate financing. These types of loans are quick business loans that are often used when traditional financing isn’t an option. Big banks and other lenders will not lend on a property if it is incomplete, needs renovating, hasn’t been constructed yet, and countless other reasons. Commercial bridge financing is an asset-based loan that has different guidelines and requirements than other financing options. Most notably, business bridge mortgages get you financing much quicker, don’t rely solely on your credit, and give you the flexibility to buy land plots or businesses that need renovation.
Residential Bridge Lending
Residential investment property bridge mortgages are one of the more popular Colorado bridge funds available. They are granted on an individual, case-by-case basis and operate much differently than traditional mortgage financing. This is due to the loan being private money or hard money loan. Big corporate banks have miles of red tape and regulations that have to be navigated before the loan will even be considered. With bridge financing, the funds are often held privately, so there are much less hassle and fewer frustrating hoops to jump through.
What is Bridge Financing used for?
The two most common uses for residential bridge financing are people looking to do a fix and flip real-estate project and people who want to move quickly on a new house when their current home hasn’t sold yet. A commercial bridge loan can be used for a variety of reasons, the most common being for credit reasons and developing.
Fix and Flip
When it comes to traditional home mortgage lenders, they are only willing to lend on the current value of the house, if at all. When you are trying to renovate a property — a fix and flip — you need the money to purchase the property and to put into increasing the value of the house. That’s why bridge financing is perfect for people who are trying to turn a profit on a property through a renovation project. Bridge financing is lent of off the value of the home once it is completed, is often asset-based rather than credit-based, and can be obtained much quicker and easier than traditional financing options.
Bridging the Gap
Additionally, perhaps the most common use for bridge financing is for homeowners who want to move on a new home before their current home has sold — hence the term bridge loan. The bridge loan bridges the gap between people selling an investment property to purchase a new one. Typically, after the previous property has sold, the bridge loan is paid off with funds from a new mortgage that provides longer-term, low-interest funding.
Commercial Bridge Lending Applications
The upfront costs associated with a new business are high, to say the least. More conventional loans won’t help cover renovation costs, remodeling, developing of land, and materials needed to get the business up and running. A commercial bridge loan is good for those businesses who want to open their first location or a new location. While normal big-bank lenders won’t loan money for starting up a business and building a new location, asset-based loans like commercial bridge financing will.
The Abbey Mortgage Difference
At Abbey Mortgage & Investments in Colorado, we use our in-house funding for all of our loans. This means you can simplify the process by cutting out the middle man an obtaining your directly from the source, unlike big banking corporations. Contact us today to learn more!
Asset-based rather than credit based
You are working directly with the source of your bridge lending needs
- You obtain funding much more quickly
- It is much easier to be approved
- They have high interest rates
- You sometimes have to pay two mortgages
- There are some upfront fees
Not a viable long-term financing option