Trusted Residential Bridge Loan Lenders
Crescent Lenders is a California-based direct bridge loan lender with decades of experience servicing both residential and commercial bridge loans to real estate investors.
Crescent Lenders has established itself as one of the finest hard money residential bridge loan lenders in California by providing quick approvals and funding, reasonable rates and dependable service.
In many cases, bridge financing is the best solution for obtaining quick access to existing real estate equity.
For investment property, a hard money bridge loan can be financed in a matter of days. Due to prior federal rules that all private lenders must follow, an owner occupied residential bridge loan may take up to two weeks.
Commercial bridge loans are also available from Crescent Lenders.
Our Lending Guidelines
| Interest Rates: | Starting @ 9.75% (interest only) |
| Closing Time: | 5 to 7 Days |
| Location: | Anywhere in California |
| Loan-To-Value : | Up to 75% LTV |
| Amounts: | $200K to $5M |
| Origination Fee: | 2 to 3 points, dependant on size and term |
| Lien Positions: | First Trust & Second Trust Deeds |
| Underwriting Fee: | $1500 |
| Loan Term: | 6 to 60 months (extensions available) |
Property Types
- Single-family & Multi-family Investment Properties
- Condominiums
- Retail Centers
- Office Buildings
- Industrial & Warehouse
- Hotels & Motels
- Healthcare & Assisted Living Facilities
- Special Purpose & Mixed Use
- Parking Garages & Lots
What is a Bridge Loan?
A residential bridge loan is a short-term financing solution given to a borrower who needs to buy property before the sale of their existing home. Bridge loans are used for real estate purchases that need to be completed quickly.
A bridge loan is a type of funding that allows you to borrow against the equity in your current property to finance the purchase of a new one.
After the new property is acquired, the old one is sold to pay off the bridge loan.
Bridge loans usually have a term of 12 to 24 months.
Bridge Loans are also frequently referred to by a variety of other names, including gap financing, swing loans, bridge financing and interim financing
Owner-Occupied Bridge Loans
In many situations, a property owner would want to purchase a new primary home but does not have the required liquid funds for a down payment.
The homeowner could sell their current home and use the proceeds to pay for the down payment, but as a result would need to obtain temporary housing until they have purchased a new primary residence.
Bridge loans from a residential bridge loan lender can help you avoid the time and expense of moving twice.
Qualifying for a Residential Bridge Loan
Residential bridge loan lenders are primarily focused on a the current market value of the home and the borrower’s equity in the subject property.
Most hard money lenders require a borrower to have a minimum of 25% equity in a property to be eligible for a bridge loan.
Hard money bridge loan lenders are not highly concerned with a borrower’s credit score, employment history or debt-to-income ratio.
Residential bridge loan lenders want to make sure the borrower is able to make the monthly interest payments and have the ability to sell their current home in a short period of time.
Advantages and Disadvantages of Bridge Loans
When funds are required to acquire a new property before the sale of a currently owned property, bridge loan mortgages can be useful to both real estate investors and homeowners. Before pursuing bridge loan financing, make sure the benefits outweigh the drawbacks.
Bridge Loan Advantages
Quick Access to Capital
Residential bridge loan lenders are not under the same strict rules and regulations of a bank and therefore can supply borrower's with funding in as little as 5 to 7 days rather than the 30 to 45 days an institutional lender will need.
Avoid Moving Twice
If a homeowner has enough equity in their primary residence but lacks the cash for a down payment on a new house, they may choose to sell their primary residence and move into a temporary home until they find a new home to purchase.
However, if the homeowner opts to obtain a bridge loan they could purchase a new home before the sale is final on their current primary residence.
The borrower would use the proceeds from the sale of their original primary residence to payoff the outstanding bridge loan.
Make an Offer Without Contingencies
Since homebuyers often require the net proceeds from the sale of their current property to cover the cost of their new home purchase, they usually include a contingency in their offer stating the homebuyer's present house must be sold before the purchase of the new home is finalized.
An offer with this type of contingency is not considered a strong offer and can result in a homebuyer missing out on their dream home.
Rather than making an offer with contingencies, it is advisable for home buyers to tap into the equity in their current homes via the use of a residential bridge loan.
Ideal Short-Term Financing Option
Big banks do not provide short-term financing since there is a substantial amount of paperwork required to complete only to have the loan paid off in a matter of months.
Therefore bridge loan lenders are a perfect resource for people in need of quick financing for a short period of time.
Bridge Loan Disadvantages
Higher Interest Rates than Bank Loans
Bridge loans from hard money lenders are more expensive than bank loans. Rates for bridge loans will differ depending on the specifics of the particular bridge loan deal, but they will often be in the range of 8-12% interest.
Large Fees
Bridge loan lenders usually charge origination fees of about 2 percent of the value of the loan which are most costly than traditional institutional lenders.
Residential Bridge Loan Requirements
Limited Documentation Needed
There are few hard money bridge loan criteria, making the bridge loan application and funding procedure quick and uncomplicated.
Paperwork such as tax returns, employment history, debt-to-income ratios and income statements are generally not required by hard money lenders.
Additionally, most bridge loan lenders can pre-approve a borrower after a short 5-10 minute conversation and borrowers can expect to receive funds in 5 to 7 days.
Loan-to-Value
Hard money lenders provide lower loan-to-value ratios (LTV) than bank loans for residential properties. Residential property bridge loans have a loan to value ratio of up to 70-75 percent, ensuring the borrower has enough equity in the property to safeguard the lender in case of default.
Monthly Interest Payments
The borrower must show that they have the financial wherewithal to make regular loan payments while the bridge loan is in place. The bridge lender may request tax returns, a W2, pay stubs, or bank statements, but a comprehensive examination of a client's finances is seldom necessary.
Exit Strategy
Lastly, bridge lenders want the borrower to explain exactly how they will repay the bridge loan.
Generally, for residential bridge loan borrowers the repayment will occur once the sale of the borrower's home is completed.
California's Trusted Bridge Loan Lenders
Crescent Lenders is a direct California bridge lender providing residential bridge loans from San Diego to San Francisco. Contact us to discuss how we may assist you with your bridge loan financing requirements.
Suite #116, 999 Overland Ave
Los Angeles, California
90064
Los Angeles, California
90064