Bridge Loan in Tampa: Bridge the Gap to Your Next Investment
Thinking about moving but concerned about whether you’ll be able to sell your home before signing a contract on your new dream home? Enjoy flipping homes and want to get started on a new house before your latest masterpiece sells?
The Associates’ bridge loans in Tampa are the right choice for securing the funding you need. Whether you’re transitioning between homes or investing in your next project, a bridge loan helps you act quickly, even when your current property hasn’t sold yet.
Bridge loans offer several key advantages, including:
If you’re wondering whether a bridge loan is the right choice for your goals, we’re here to help. Contact The Associates Home Loan of Florida, Inc. today to explore your options and secure the funding you need for your next big move!
What Is a Bridge Loan?
A bridge loan is so called because it helps homeowners or residential real estate investors fill the financing gap between buying a new property and selling their current one. Sometimes referred to as a bridge mortgage or a bridging loan, it offers a practical solution for navigating short-term financial needs.
For example:
- If you’ve found your dream home but haven’t yet sold your current property, a bridge loan ensures you have the funds needed to secure the new home.
- If you’re eyeing an investment property, this loan allows you to act fast in a competitive market without waiting for other financing to come through.
How Do Bridge Loans Work?
- A bridge loan can cover down payments, closing costs, or even additional funding to improve your chances of securing favorable loan terms.
- Once your current home or investment property sells, the bridge loan is typically paid off, making it a practical option for short-term needs.
Whether you’re a homeowner or a real estate investor, Florida bridge loans offer a reliable way to navigate the financing challenges of buying and selling properties simultaneously.
Types of Bridge Loans
Bridge loans come in various forms to meet diverse financing needs. Here are the most common types:
- Residential Bridge Loans: Ideal for homeowners needing short-term loans to purchase a new property before their current home sells. Perfect for avoiding contingencies and ensuring a smooth transition.
- Bridge Loans for Investment Properties: Designed for real estate investors to quickly fund bridge loans for investment properties or renovations. Helps seize opportunities in competitive Florida markets.
- Commercial Loans: Tailored for businesses and investors purchasing or upgrading commercial properties. Provides fast access to funding while securing long-term lending options.
Whether you’re a homeowner or an investor, The Associates Home Loan’s bridge lenders are ready to help you secure the financing you need.
Key Advantages of Using Bridge Loans
Bridge loans offer numerous advantages for borrowers seeking quick and flexible lending solutions for real estate transactions or investment properties. Here are the key benefits:
- Quick Access to Funds: Ideal for time-sensitive opportunities, such as securing your next property or covering a down payment before your current property sells.
- Flexible Loan Amounts: The loan amount is typically based on the value of the property being used as collateral, making these loans asset-based rather than reliant on credit history.
- Short-Term Loan Solution: Designed to fill the gap between transactions, bridge loans allow you to act without delays while transitioning to permanent financing.
- Customizable Terms: Bridge lenders offer flexible repayment options, helping borrowers manage their interest rate, payment, and loan duration with ease.
Whether you’re investing in Florida properties or need a short-term solution for a real estate transaction, The Associates Home Loan of Florida can help. Contact us today to discuss how a bridge loan can fund your next move and provide the financial flexibility you need.
What Do I Need to Apply for a Bridge Loan?
Loan requirements will vary among different lenders. If you are considering applying for a bridge loan, you may need to meet the following requirements
The most important thing you need when applying for a bridge loan is equity. Ideally, you should have at least 20% equity in your current property.
In addition, you may need to also share:
- Copies of pay stubs for each applicant, reflecting a minimum of 30 days of income
- Names/addresses of employers for two years
- W-2s for two years
- One to two years of tax returns
- A completed and signed Form 4506-T or 4506T-EZ, provided by your Mortgage Banker
- Bank statements for two to three months
- If self-employed, year-to-date profit and loss statement, plus signed returns for last two years
- Proof of pension income, if applicable
- Social Security and Disability payments, if applicable
- Dividend earnings
- Bonuses
- Child support or alimony payments (optional for you to disclose)
- Information on debts such as car loans, student loans, and credit cards
- Security accounts (stocks, bonds, life insurance)
To know exactly what you’ll need to apply for a bridge loan from The Associates Home Loan, contact us today.
Tips for Choosing a Reputable Lender
The lending market is constantly expanding. Consumers must be vigilant and well-informed to ensure they aren’t taken advantage of by predatory lenders. There are many loan portals that claim quick, easy loans. To ensure you’re working with a reputable private lender, follow these key steps:
- Check Their Reputation: Verify the lender’s Better Business Bureau (BBB) rating. A strong BBB rating, such as an A+, reflects reliability and trustworthiness.
- Review Their Experience: Look for established lending institutions with a history of supporting borrowers. For example, The Associates Home Loan has been serving Floridians for 17 years, specializing in personalized loan products.
- Understand Their Loan Terms: Ensure clarity on the loan amount, interest rates, and additional costs like fees. For bridge loans, ask about their loan-to-value (LTV) ratios and whether they offer asset-based lending.
- Evaluate Their Process: A reputable lender will have a transparent underwriting process and provide clear timelines for funding. This is especially important when securing a loan for a down payment or a new home purchase.
- Seek Customer Support: Look for lenders committed to excellent service, with loan professionals available to answer your questions and guide you through the process.
The Associates Home Loan checks all these boxes. With a strong reputation, nearly two decades of experience, and a commitment to transparent processes and excellent service, we are here to help you secure the funding you need.
If you’re ready to apply for a bridge loan, you can give us a call at 813-328-3632, apply online, or stop by our office in Tampa.
Still not sure if a bridge loan is for you? No problem, simply call one of our skilled loan representatives for more detailed answers to your specific questions. We’d be happy to help!
Recently Closed Loans in Florida
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 572 | 55% | $115,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 452 | 57% | $335,000 |
| 495 | 17% | $30,000 |
| 522 | 38% | $85,000 |
| None | 36% | $145,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 517 | 20% | $30,000 |
| 626 | 12% | $40,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 591 | 53% | $285,000 |
| 727 | 60% | $575,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 645 | 42% | $1,750,000 |
Frequently Asked Questions
To be eligible for a bridge loan from The Associates Home Loan of Florida, you must be purchasing a property in Florida. You don’t need to already be a Florida resident, and you don’t need to have excellent credit. In fact, The Associates Home Loan is proud to help individuals who are rebuilding their credit.
Ultimately, different lenders have different requirements. The best way to determine whether you may qualify for a bridge loan is to speak with a skilled loan professional. Most lenders will take several factors into account when considering whether to grant a bridge loan, including the amount of equity or value of your current home or real estate property and your debt-to-income ratio (how much of your income goes towards servicing your debts).
The loan amount of your bridge loan will depend on the equity you have in your current home or real estate property and the terms set by the lender. Typically, borrowers can access up to 60-80% loan-to-value (LTV). Some lenders also allow to use a bridge loan as a second mortgage, lending a percentage of the value of the first home, which is then paid off when the home sells. To determine how much you may be eligible to borrow, call The Associates Home Loan of Florida today at 813-328-3632.
If you are in the market for a home and are ready to make an offer on a new property but haven’t sold your existing property yet, applying for a bridge loan can help you secure your new property without worrying about when your existing property will sell.
To ensure you’re able to make an offer when you find that property you just have to have, you’ll want to apply for your bridge loan when you’re ready to purchase a new home. That way, you can make a competitive offer that isn’t based on contingency or on a loan application. Knowing that you’ve been approved will make the process easier, increasing your chances of securing the property you want.
Because bridge loans are short-term loans that have a specific goal, the application process and turnaround time can be pretty quick. You can make your application process run more smoothly by ensuring you have all the documentation your lender requires.
At The Associates Home Loan, we try to close and fund loans in 7 to 14 days. You can start your application on our website at any time by clicking “Apply Now.” Alternatively, you can stop by our office or give us a call at 813-328-3632. Our friendly loan professionals are always available during business hours.
Bridge loans are asset-based and require that your current property is used as collateral to secure the loan. Once your home sells, the expectation is that the proceeds of the sale will go towards paying off the bridge loan.
The average loan interest rate for a consumer bridge loan is generally higher than that of a mortgage from a traditional lender. The exact interest rate will vary depending on the specifics of your loan application, however, most fall within the range of 8 to 10%. In addition to the interest, lenders may charge origination or servicing fees.
Every loan product carries a risk, with the main risk being the inability to pay it off. When you agree to a bridge loan, your current property is used as collateral to secure the loan. If you default on the loan, ownership of the property will be transferred to the lender.
Because bridge loans are short-term loans, they must be repaid, with interest, within 12 months. When considering the pros and cons of a bridge loan, you’ll want to calculate your monthly payments and determine whether you can pay back your loan according to the loan terms. Ideally, your property will sell and you will be able to put those funds toward repayment. There is a chance, however, that your current property won’t sell.
Whether you can get a bridge loan with poor credit will depend on your lender.
The Associates Home Loan prides itself on helping individuals who have financial difficulties get back on their feet. While traditional lenders will balk at funding a loan for an individual with a low credit score, we offer bad credit loans and hard money loans to help them meet their needs.
Your ability to secure a bridge loan with poor credit will depend on a variety of factors, including the amount of equity in your property, your income, your debt-to-income ratio, and more.
Every situation is different. The best way to ascertain whether you’re eligible for a bridge loan is to speak with one of the professionals at The Associates Home Loan of Florida.
Residential bridge loans are not generally available at traditional banks. Often, the best way to get a bridge loan is to check out your local hard money lender. The Associates Home Loan of Florida is proved to offer consumer bridge loans and other mortgage loan products to individuals looking to purchase real estate in Florida.
Each loan is different, and how quickly your bridge loan is disbursed will depend on your lender.
At The Associates Home Loan, we try to have all of our approved loans disbursed within 14 business days of the application date. We understand the importance of having your loan funds available so you can quickly act on any exciting properties.
Each loan is different, and how quickly your bridge loan is disbursed will depend on your lender.
At The Associates Home Loan, we try to have all of our approved loans disbursed within 14 business days of the application date. We understand the importance of having your loan funds available so you can quickly act on any exciting properties.
Both a bridge loan and a hard money loan require you to have equity in your current property and that your property be used as collateral to secure the loan. However, their goals differ. While a bridge loan focuses on the short-term goal of helping you purchase a new property, hard money loans can be used in a variety of ways, such as funding investment properties, renovations, or even business needs.
In addition, depending on your lender, hard money loans often have longer terms than bridge loans, providing more flexibility for borrowers. It’s important to note that some lenders do call their bridge loans “hard money bridge loans,” though this does not extend the terms of the loan. It merely reflects that, in general, individuals who apply for a bridge loan are in a difficult situation.
