Bridging Loans are short term loan obtained for financing or for investing in the real estate until traditional financing can be obtained. Most of commercial banks that we use for depositing our money etc do not provide bridge loan financing, this is because of loan’s capricious nature, lack of proper documentation and the risk involved.
Bridge loan lenders have been fettered by state or federal law; however there are some limitations with regard to interest rates. Other than this there are certain guidelines which regulate the bridge loan borrower.
1. The age limit of a borrower should be in between 18 to 70 yrs
2. The loan is obtained against the value and not against the purchase price of collateral property. This is of significance for the mature developers who often buy the property at a lower price. However this still remains the choice of Bridge Loan Lenders to decide upon.
3. Utmost loan value is 65-70% of the collateral property.
4. The interest rate is generally charged at a higher rate, as high as 15-29%. This is because the time frame of quick bridge loans is very short like a week up to 12 months.
Disclaimer: The entire information provide in this post is a mere piece of information and has been gathered from various sources. This has no legal value of its own.
For any further information you can drop a mail at enquiries@supreme-finance.com
Thursday, November 29, 2007
Thursday, November 22, 2007
Bridging Loans
Bridging Loans can save you from loosing your dream property just because you have problems selling your old property which has disabled you raising sufficient funds.
Easy Bridging loans are the convenient, shortest and quickest form of loan which can solve your financial problems at the very time of need. It is of exceptional help in times of temporary shortfall of money. It can be arranged for a week which can extend up to a period of twelve months.
Bridging Lenders usually work very quickly and can arrange the money as soon as they receive notice. In urgent cases money can be received with in 48 hours if the required documentation is in placed. It is an easy form of raising funds as the lenders are more flexible in their terms and conditions as compared to the other forms of loans.
Few notabilities should keep in mind when going for this option. Firstly, this is an expensive option as the rate of interest charge on the principal amount is generally higher because the loans are taken for a very short period. Secondly you need to vouch some security against the loan amount or if we put it in other words, the loan is sanctioned according to the amount of property which you have provide as a security against loan.
Easy Bridging loans are the convenient, shortest and quickest form of loan which can solve your financial problems at the very time of need. It is of exceptional help in times of temporary shortfall of money. It can be arranged for a week which can extend up to a period of twelve months.
Bridging Lenders usually work very quickly and can arrange the money as soon as they receive notice. In urgent cases money can be received with in 48 hours if the required documentation is in placed. It is an easy form of raising funds as the lenders are more flexible in their terms and conditions as compared to the other forms of loans.
Few notabilities should keep in mind when going for this option. Firstly, this is an expensive option as the rate of interest charge on the principal amount is generally higher because the loans are taken for a very short period. Secondly you need to vouch some security against the loan amount or if we put it in other words, the loan is sanctioned according to the amount of property which you have provide as a security against loan.
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