Bridge Loans
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A bridge loan is a short-term loan used to cover the gap between buying and selling a property, or between the end of one loan and the start of another. It essentially provides temporary financing until a more permanent solution can be arranged, such as securing a longer-term mortgage or selling a property.
Purpose:
Real Estate Transactions:
Bridge loans are commonly used when buying a new property before selling the old one to bridge the financial gap.
Financing Gaps:
They can also be used to cover temporary financial needs when waiting for long-term financing or the sale of an asset.
Short-Term:
Bridge loans are designed to be repaid within a relatively short period, typically 6 months to a year.
Secured:
They are often secured by the borrower's assets, such as the property being purchased or sold.
Higher Interest Rates:
Due to the short-term nature and higher risk, bridge loans generally have higher interest rates compared to traditional long-term mortgages.
Examples:
Buying a new home before selling your old one: A bridge loan can cover the down payment and mortgage on the new home until your old home sells, says Experian.
Funding a construction project:
A bridge loan can be used to finance construction costs while awaiting a more permanent loan.
Investing in real estate:
Real estate investors may use bridge loans to flip properties or cover short-term expenses.
Apply Today For Your Bridge Loans at Fundslenders
Loan Amount
The loanable amount is up to 70% of the appraised value/ market value of the real estate property, subject to the member’s Single Borrower’s Limit, paying capacity and take-home pay policy, as applicable.
Requirements for computation of paying capacity
- Latest 1month payslip
- Proof of other income for those filing with family income
Requirements for property valuation
- Contract to Sell from the Developer OR
- Property Appraisal
- Duly accomplished Authority to Inspect form
- Photocopy of TCT/CCT
- Photocopy of current year’s Tax Declaration
- Photocopy of current year’s Tax Clearance
- Photocopy of current year’s Tax Receipt
- Duly accomplished Debit Advice Payment Form (if payment will be deducted from RSD)
*Appraisal fee depends on the location of the property and is non-refundable if the member opts not to proceed with the loan application.