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Stabilized Bridge Loan


Last updated: October 25, 2024


*Hard money bridge loans for turnkey properties -- strictly for real estate investors.*


What is a stabilized bridge loan?


A stabilized bridge loan is a short term interest-only loan for the purchase or refinance of move-in ready ("turnkey") residential real estate.


Why use a stabilized bridge loan?


Real estate investors use stabilized bridge loans for the following reasons:


  • Need to purchase a turnkey rental property fast, not enough time for a DSCR loan.
  • Need to purchase a turnkey property fast with the exit strategy to sell the property for a profit.
  • Need to refinance a hard money loan for a completed rehab project with the exit strategy to sell the property.
  • Need to refinance a hard money loan for a completed rehab project with the exit strategy to refinance into a DSCR loan.
  • Need to refinance a property purchased with cash with the exit strategy to sell the property.
  • Need to refinance a property purchased with cash with the exit strategy to rent and refinance the property with a DSCR loan

Stabilized bridge loan guidelines


Component Guidelines
Max LTV (as is) 70%
Max LTC 85% (only applies if refi and owned less than 6 months)
Interest rate get instant quote, term sheet and pre-approval
Points 1.5% (loans greater than $200,000), 2% (loans less than $200,000)
Lender fees $1,425 (legal, doc prep, underwriting)
Min loan amount $75,000
Min credit score 660
Term 12 months (standard), 18 months (by exception)
Eligible property types 1-4 unit residential
Extensions up to 6 months (1% fee for first 3 months, 1.5% fee for second 3 months)
Structure interest only
Borrowing entity LLC, Corporation (personal name not allowed)
Personal guarantee Yes (does not report to personal credit or affect DTI)