Rates as Low as 9.75%
75% LTV
Trusted 5-Star Rating on Google
Anywhere in California
Direct Lender, Not a Broker
$200K to $2M
No Upfront Fees
Self-Employed or Foreign National
Pre-Approval in Hours, Funding Within Days
Crescent Lenders is a California-based direct bridge loan lender with decades of experience servicing residential and commercial bridge loans to real estate investors.
Crescent Lenders has established itself as one of California's finest hard money residential bridge loan lenders by providing quick approvals, funding, reasonable rates, and dependable service.
In many cases, bridge financing is the best solution for quick access to existing real estate equity.
A hard money bridge loan can be financed in days for investment property. However, 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.
A residential bridge loan is a short-term financing solution for borrowers who need to buy property before the sale of their existing home. Bridge loans are used for quick real estate purchases.
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 various names, including gap, swing, bridge, and interim financing.
In many situations, a property owner wants to purchase a new primary home but lacks 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 they 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.
Residential bridge loan lenders are primarily focused on the home's current market value 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 ensure that the borrower can make the monthly interest payments and sell their current home quickly.
For more information on obtaining a bridge loan, click here.
When funds are required to acquire a new property before selling 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.
Quick Access to Capital
Residential bridge loan lenders are not subject to the same strict rules and regulations as banks and, therefore, can supply borrowers 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 it 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 of their current primary residence is final.
The borrower would use the proceeds from the sale of their original primary residence to pay off 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, home buyers should tap into the equity in their current homes through a residential bridge loan.
Ideal Short-Term Financing Option
Big banks do not provide short-term financing because it requires a substantial amount of paperwork to complete, only to have the loan paid off in a matter of months.
Therefore, bridge loan lenders are a perfect resource for people who need quick financing for a short period of time.
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 loan's value, which is more costly than traditional institutional lenders' fees.
Limited Documentation Needed
There are few hard money bridge loan criteria, making the bridge loan application and funding procedure quick and uncomplicated.
Hard money lenders generally do not require paperwork such as tax returns, employment history, debt-to-income ratios, and income statements.
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 an LTV 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 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, repayment for residential bridge loan borrowers occurs once the sale of their home is completed.
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.