Bridge loans
A bridge loan is a short-term loan for an individual or business in anticipation of permanent or financing is obtained from a less interest charging source. Money obtained after permanent or refinancing is obtained is used to clear of the bridge loan. The interest rates for such loans will be in the range of 12 – 15 %.
Who Opts for bridge loans in Georgia?
Usually people who what to purchase a new residence and short on down payment take a bridge loan on currently owned home which is up for sale or till a loan from a bank or a less interest charging financial institute is obtained. In case the property to be purchased is an investment and the property is part of the auction, the purchaser has only two to six weeks time to complete the transaction, bridge loans are opted. Long term lending sources cannot give money in that quick time.
Bridge loans are also obtained by developers to start a project while permit is applied and yet to be granted. Since the nature of project will determine whether the project will get permission or not, the interest rate is very high almost 21%. These types of loans are offered by all hard money lenders. Hard money lenders who can take such huge risks will offer these loans. Once the project obtains permissions, it becomes is easier for the developer to get loans from more conventional sources.
About Bridge Loan Lenders in GA
Here are some of the GA hard money lenders who provide brigde loans- Atlanta Private Lending, Brook View Financial, EDC Capital Partners, Piedmont Capital Lending, Peach Stone Capital, Valuation Mortgage Capital
