How Long Does It Take to Get a Bridge Loan
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Timing is everything in real estate, and a bridge loan can provide the short-term financing needed to secure a new property before your current one is sold. But how quickly can you actually get approved and funded?
The timeline for a bridge loan depends on the lender, your financial profile, and how prepared you are with documentation.
Understanding the typical process will help you plan ahead and move with confidence.
Bridge Lenders: Bridge loans are provided by hard money lenders, also known as bridge lenders or private money lenders.
Interest-only Payments: Bridge loans typically require only monthly interest payments during the loan term, with the full principal balance due at the end of the term. This structure enables borrowers to manage their cash flow while holding two properties.
Short-term Loans: Bridge loans typically last from 3 to 24 months and are secured by collateral, usually real estate.
Higher Interest Rates & Fees: Bridge loans are more expensive than traditional mortgages, reflecting their short-term and flexible nature.
Funding Timeline: They can be funded in as little as 5 to 7 days.
Higher Interest Rates & Fees: Bridge loans are more expensive than traditional mortgages, reflecting their short-term and flexible nature.
Collateral Based Underwriting Factors:
The most desirable feature of a bridge loan is its speed. Lenders can approve these types of loans in a matter of days, versus bank loans that can take months.
Let’s go over a typical timeline for obtaining bridge loan financing, which can vary on a case-by-case basis.
Borrowers in need of quick financing can expedite the funding process by having all documents in digital format, ready to be sent to the lender, and being responsive to any requests from the lender.
There is no universal basic checklist for securing a bridge loan; instead, each bridge lender has its own lending criteria.
Borrowers should have the bare essentials ready before even speaking to a lender; this shows professionalism and can start things off on the right foot.
Lenders want to know how they will be repaid. Failure to clearly explain this step will make the lender skeptical.
Provide recent mortgage statements and a clean title.
Bridge lenders vary widely on required documents, but may ask for any combination of the following.
Russell is a seasoned real estate investor, writer, and hard money lending expert, as well as the co-founder of Crescent Lenders. He holds a degree from the University of Southern California’s Marshall School of Business. Outside of work, Russell enjoys surfing and spending time outdoors with his dog, Amy.