BRIDGE FINANCING

We offer loans at 80% combined LTV up to $5,000,000. Bridge loans are also known as interim, gap, or swing loans. Bridge loans bridge the gap during times when financing is needed but not yet available. Businesses use bridge loans because they can be customized for different situations but are mainly used until permanent financing is secured or it removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively high interest rates, and are usually backed by some form of collateral, such as real estate or inventory. Bridge Loans usually have two Main Options

  1. Hold two loans: Borrow the difference between your current loan balance and up to 80% of your home’s value. The funds in the second mortgage is applied to the down payment for the second home while keeping the first mortgage intact until it can be eventually paid when the building is sold.
  2. Roll both mortgages into one: This solution allows you to take out one large loan for up to 80% of your home’s value. You pay off the balance of your first mortgage and then apply the second toward the down payment of your next home.

Both options can be utilized for funding lags between the purchase of one property and the sale of another property. This solution requires excellent credit rating and low debt-to-income ratio. Bridge loans roll the mortgages of two houses together, giving the buyer flexibility as they wait for the old property to sell. We offer bridge loans worth 80% of the combined value of the two properties, meaning the investor buyer must have significant home equity in the original property or significant cash savings on hand.

 

About the author

Millennium Capital is a multi strategy Private Equity, and Capital Advisory firm dedicated to helping businesses succeed with a full range of strategic finance services making both direct investments in operating companies as well as partnering with other private equity, venture capital firms, banks, and our strategic network of investors to provide long-term and short term financial solutions.
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