A bridge loan is a short-term loan prior to longer-term financing, sale, or other financial events.
Bridge loans are also known as short-term loans or interim loans. The “bridge” refers to the short span or gap of time. That span is often between two financial events.
Borrowers may need funds more quickly than a bank loan or another longer-term financing can be arranged. Bridge loans can often originate quickly and provide funds fast, while longer-term financing or other transactions are pending.
Borrowers may repay bridge loans with longer-term financing; However, repayment events may include:
- longer-term refinancing
- collateral property sale
- an equity investment
- sale of another property
- distributions from a business
- distributions from other investments
- sale of investments
- receipt of a judgment or settlement (including divorce)
- other monetary events
Speed in providing the loan is often important. To avoid delays, lenders may ignore income and other items. Verifying aspects of income can be time-consuming. Bridge loans may have higher costs. Bridge loan amounts are often limited by a loan-to-value ratio. This avoids time spent on other items. Bridge loans that are asset-based may be described as hard money loans.
People often take bridge loans because they need the funds quickly. An opportunity may disappear if they do not act quickly. Partner buy-out time limits. Sellers may take other offers. Price may go up. Sale may be canceled. People may need money to avoid other consequences. People need money to avoid default, forfeiture, credit damage, lawsuits, etc. Often the advantages of a quick bridge loan far outweigh the costs.
We provide Colorado bridge loans for 2 days to 3 Years. Our bridge loans are secured by real estate. This avoids time on spent income verification.We understand a speedy loan process is valuable.
Our loans are secured by real estate in the following:
- Denver Area
- Boulder Area
- Colorado Springs Area
- Fort Collins Area
Call (303) 500-3200.
Investment residential and commercial real estate only.