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
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment