Multifamily bridge loans are short term (12 - 24 month), interest only loans for the purchase and renovation of 5+ unit residential properties. OfferMarket is a private lender for experienced real estate investors.
The bridge loan, whether for single family (1-4 unit) or multifamily (5+ unit) residential properties, is a powerful financing program that allows real estate investors to purchase properties with minimum down payment, and access a line of credit to renovate the property.
Bridge loans are interest only, meaning there is no principal repayment (amortization) on a monthly basis. Since the investor is only making interest payment and not making principal payments as they would with a mortgage, the investor can conserve cash while the property may be fully or partially vacant and focus on preparing the property for sale or refinance into a longer term loan.
Our bridge loan index tracks the prevailing interest rate for bridge loans. See how OfferMarket's bridge loan interest rate and terms compare:
|Guidelines:||Multifamily Bridge Loan|
|Interest Rates||see index above|
|Origination Fees||1 to 2 points (% of loan amount)|
|Property Types||5+ unit and mixed use|
|Loan Amounts||$500,000 - $25,000,000|
|Maximum LTV, ARV||75%|
|Maximum Loan To Cost||Purchase: 80% of As-Is Value and 100% of rehab, Refinance: 75% of As-Is Value and 100% of rehab|
|Term Length||up to 24 months -- +0.5% for months 13 - 18, +0.75% for months 19 - 24|
|Minimum Guarantor FICO||650|
|Ownership||LLC or Corporation|
|Recourse||Full recourse, Limited recourse|
Timeline: 15 - 30 days