When you are undertaking a project of any kind, whether it is construction, development, or short-term investment in real estate, one things is a must – financing. But at times, qualifying for a loan isn’t always possible. In these situations, taking out one of the bridge loans Houston private lenders offer is well worth considering.
A commercial hard money bridge loan is designed to be a bridge from having no funding to the point that you can qualify for a better loan. These short term loans are structured so that you get the money you need quickly and can take the steps needed to get a more traditional loan, then repay the bridge loan. As such, they’re a common option for those who are moving forwards quickly in the real estate world or other areas of business.
Bridge loans Houston are used in a variety of situations including:
• When a purchase opportunity exists but won’t for long, and you can’t wait for approval through a traditional lender.
• When you have too much debt to income ratio and can’t secure additional funds to finish a project.
• When a construction project must be completed before it qualifies for a traditional loan or before you can sell a property.
In other words, when you need additional funds to take steps that let you make a sale or qualify you for a more traditional long term loan, these short term loans are the right choice. They aren’t based on credit checks or debt to income ratios, but are instead based on the value of the assets being used to secure the loan. Usually you can borrow up to 60 to 65 percent of the total value of the asset used in the loan. This is often enough for those who need the loans.
Individual lenders structure their loans differently, and there is much variance in the industry where these loans are concerned. You can expect interest rates that are higher than traditional loans since they have a greater amount of risk for the lender. But, that interest rate is worth it to those who need funds quickly and are trying to secure the future of their commercial endeavors.
Simply put, a commercial hard money bridge loan is well worth looking at if you’re having trouble finding funding through other means. They could be exactly what you need.
For more info call: 713-784-7676 or email: info@houstonmoneyman.com.