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For Whom Bridge Loan Is An Excellent Option

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Texas Commercial Loans

A bridge loan is a type of short-term financing that gives businesses and individuals the flexibility to borrow money for up to a year. Also referred to as bridging loan, bridge financing, gap financing. Interim financing and swing loans, Texas bridge loans are secured by collateral such as the borrower’s house or other assets. Bridge loans usually have interest rates between 8.5 percent and 10.5 percent, making them more expensive than conventional, long-term financing options.

Nonetheless, the application & underwriting process for bridge loans is usually faster than conventional loans. Moreover, if you can be eligible for a mortgage to buy a new house, you can perhaps qualify for a bridge loan – assuming you’ve the needed equity in your first house. This makes bridge loans an excellent option for homeowners who wish fast access to funds to buy a new home prior to they’ve sold their present property.

When to use a bridge loan?

Bridge loans are mostly used when a homeowner wishes to purchase a new home prior to selling their present property. A borrower can use a part of their bridge loan to pay off their present mortgage while using the rest as a down payment on a new house. Similarly, a homeowner can make use of a bridge loan as a second mortgage that covers the down payment for their new home.

A Texas bridge loan is a good fit for you if you:

  • Have selected a new house & are in a seller’s market in which homes sell fast.
  • Wish to buy a property but the seller won’t accept an offer depending on the sale of your present house.
  • Cannot afford a down payment on the new property without first selling your present house.
  • Wish to close on a new house prior to selling your present house.
  • Are not scheduled to close on the sale of your present house prior to closing on the new home.

Bridge loans can also be used by businesses to take benefit of instant real estate opportunities or to find temporary expenditures. These loans are usually offered by hard money lenders, which finances loans employing your property as security.

Texas Commercial Loans is more than a lender, we are your partner. With local market knowledge & a streamlined process, we work with you to give access toTexas bridge loans to ensure that your project gets completed quickly & efficiently.

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