Apartment Loan Store has some of the lowest bridge loan rates in your area. We have had a specialty in Bridge Financing since 1997. The term of our bridge loans is between one and two years and for some projects up to three years. Our funds come from Hedge Funds, REIT’s, and private money investment funds.
We have great rates starting at 5.75% for experienced borrowers with stellar projects who are strong financially. Closing on our lowest rate bridge loans averages 30 to 45 days. For borrowers with lower net worth, liquidity and credit, our bridge loan rates start at 8.5%. One of our most popular programs can be used to purchase a value added multifamily complex that needs some rehab with a rate of 7.00% for up to a 2 year term. Once the renovations are completed and the property is stabilized (fully leased) we can convert the bridge loan to a very low 5 – 10 year fixed rate perm loan with a 30-year amortization.
Before we get into bridge loan rates, let us look at some key information about bridge loans to have a basic understanding about them. Our focus will be on multifamily bridge loans.
Four Purposes for Multifamily Bridge Loans
There are four purposes for multifamily bridge loans. The first is for financing multifamily complexes that need remodeling or rehabilitation. These are called value-added projects. In many cases we can lend up to 75% of the as completed stabilized value. The second purpose is for apartment buildings that have much lower than market occupancy and do not qualify for conventional permanent financing. The goal is to start with a bridge loan and once the property is stabilized (filled at market occupancy) it can be refinanced with a low rate conventional permanent loan. The third purpose is when you need to close quickly on a purchase or to refinance your existing mortgage where the term is up in 45 days or less. Keep in mind that if you go over the mortgage term without an extension from the lender you will be in default with the total balance due. Some of our bridge loans can close in one to two weeks in this situation. The fourth purpose is for ground up construction when the borrower cannot qualify for conventional construction financing.
We can pre-approve you and help you obtain value-added multifamily complexes that are sold at auctions at a lot under their current market value. Another good benefit is that almost all of our bridge loans are interest only with very short or no prepayment penalties.
Apartment Loan Store Multifamily Bridge Loan Programs
Platinum Bridge Loan for Strong Investors
5.50% is where rates begin. There is a two year term. Loan to appraised value can be as high as 75 percent. Those who can qualify have properties performing well, but require some remodeling—but not a lot. Another way investors can qualify is if they have quite a bit of net worth and liquidity. 30 to 45 days is the range of time for closing.
Gold Bridge Loan – for properties in good neighborhoods.
The range of rates is 6.50 %to 7.50%. A possible purpose for a Gold Bridge Loan is the multifamily complex had poor management, and the occupancy is a bit lower than market occupancy with lower than market rents. Another purpose could be that the property requires repair and remodeling. This particular type of loan can be converted to a low rate permanent loan for 5 to 10 years, and it is amortized for 30 years.
Premium Bridge Loan – Requires investor with moderate strength financially.
8.50% is the starting rate, term is one to two years, and 75 percent is loan to stabilized appraised value. One purpose of a premium loan is to buy a value added commercial property at auction that needs some rehabilitation.
Standard Bridge Loan – Could be utilized to get value-added commercial realty, for construction, or also for rehab.
9.00% is the starting rate. The term ranges from 12 to 18 months, and 65 percent to 70 percent is the loan to value. It takes two weeks or less to close the loan. And the loan is made principally to the real estate.
Structured Equity Loan – To be able to get up to 85 percent loan to value.
How do you get up to 85 percent loan to value on a bridge loan? You combine a 75 percent first mortgage with a 10 percent second position. This second position could be accomplished a type of financing called mezzanine, or preferred equity.
Note Purchase Loan – To be able to buy a mortgage note on a property that is not performing.
You purchase a non-performing property, then the property is foreclosed. Next, the note purchase loan converts to a bridge loan until it is stabilized and performing nicely.
As you can see, bridge loan rates vary based on the strength of the investor’s finances, and various qualities about the property and the time needed for closing. Give one of our friendly loan specialists a call today to discuss your project. We would love to win your business at Apartment Loan Store.