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Get The Capital You Need with Bridge Loans for California Property

A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation.

Conventional loans

Secure Bridge Loans for Business and Real Estate

Sprint Funding offers accessible, hassle-free loans like commercial bridge loans for single family homes.
Conventional loans

Due to the COVID-19 pandemic, all bridge loan services are still not available and have yet to come back. Contact us for more information.

As a bridge loan investor, we can help make critical components of your business available like purchasing reliable equipment, maintaining cash flow year-round, cover immediate expenses like bills, and provide financing to your customers through the equity in your investment properties.

We can help you purchase a new home while you are in the process of selling your old one.

We do this by bridging the gap between the sales price of your new home and your new mortgage when you haven’t sold your old home yet and you have to close the purchase on your new home.

We help make these happen for businesses and real estate investors who need fast funding through a bridge loan financing.

What is a Bridge Loan?

About Sprint Funding

A bridge loan is a short-term loan (usually 1-12 months) with short-term plans that provides faster financing.

It can be used for bridging the gap between the shortage of funds and business expenses or used to purchase a new home while in the process of selling your current home.

It is a temporary financing facility providing short-term funding while you are processing or waiting for a permanent loan or until a current debt obligation is removed.

If you’re coming up on a time in your life where you’ll temporarily be without income, you may have heard of bridge loans. A bridge loan can be used in transactions to provide a flow of cash when you’re in a transitional period; for example, when you move into a new house.

A homeowner can use this as a short-term loan to give them quick cash to pay off debts or finance a new house.
While this may sound like a good opportunity to take, there are a few drawbacks that come along with its benefits.

A bridge loan will have higher interest rates than other options and will usually need to be backed by collateral, which can take the form of a business or real estate. This kind of loan will often be used for real estate transactions and is also known as a “bridging loan” or “bridge financing”.

Sprint Funding has gathered everything you need to know about bridge loans, how they can help you find new properties, and where you can find a high-quality one for yourself.

A bridge loan is generally offered by traditional banks, small banks, community banks and credit unions, alternative and non-traditional lenders.

It takes a relatively shorter time to process compared to traditional loans and can be repaid at the end of the term or in a series of daily, weekly, or monthly payments.

Interest rates are generally higher usually ranging from 8-20% but can be much bigger depending on the type and terms.

We at Sprint Funding can help you get the money you need with a bridge loan for your immediate expenses for your business or new homeownership while you wait for other financings to come through.

The main way that can help you secure a bridge loan is by leveraging single-family investment properties.

How Bridge Loans Work

A bridge loan “bridges” the gap when you need funds but they aren’t currently available. It’s also known as “gap financing”, “interim financing”, or a “swing loan”, and you can obtain one through companies or individuals.

Lenders can customize these loans to suit a wide range of situations; for example, they’re often used to help homeowners buy a new home while waiting for their current house to sell.

Borrowers will usually use the equity of their current house towards the down payment for their new home. Generally, lenders will offer bridge loans to borrowers who have low debt-to-income (DTI) ratios and high credit scores.

Getting a bridge loan will provide a homeowner with the extra time they need, along with a little peace of mind as they wait. However, as we’ve mentioned, this kind of loan comes with a higher interest rate than others, even though the borrowers typically have good credit scores.

Another potential drawback is that lenders will typically only provide a bridge loan for a total of 75% of both properties’ combined worth. This means that you will need to have a significant amount of cash savings in your pocket or a large amount of equity from your current property.

Bridge Loan Rates

Bridge loan interest rates will typically be high compared to a conventional loan — in fact, charges can get as high as 2% over the prime rate. Just like a traditional mortgage, your bridge loan will come with closing costs and origination fees that can cost a few extra thousand dollars, too.

On top of these, you might also need to pay for an appraisal. However, be advised that protection for buyers will often be limited in case the sale of your old home doesn’t proceed.

Be sure to go through the terms and conditions that come with your bridge loan offer before accepting anything. Since these loans are tied to your existing property, a bridge loan lender can foreclose it if you can’t meet your payments.

With this in mind, you’ll need to consider how long you can live comfortably in case your sale falls through. It’s also best to do plenty of research into real estate and find out how long it takes for houses to sell around your area.

Repaying a Bridge Loan

A bridge loan will generally last for a year before you need to start making your repayment. You would do well by structuring your payments and using the money from your home’s sale to begin repaying your bridge loan.

There will usually be a final due date for your loan when it must be paid back in whole. Be sure to discuss the terms of your payment with the lender for your bridge loan to ensure that you stay on the right track moving forward.

Average Fees for Bridge Loans

Rates will vary depending on the lender as well as location. Changes in interest rates can also affect this.
Typically there’s a loan origination fee and the cost is based on the amount of the loan.

Benefits of Bridge Loans

About Sprint Funding

Who Needs California Bridge Loans?

Those who are planning to purchase a new home before selling their old one, especially in California, are the most likely candidates for bridge loans.

Lenders provide the borrower with California hard money to purchase new property, and because it is secured by the old home, it offers lower interest rates than other types of loans. The borrower can then use the hard money from the sale of the old home or real estate to pay off the bridge loan.

Alternatively, a direct bridge loan can serve as a second mortgage — with the old property as collateral — providing extra money for renovations or other real estate purposes. This can be especially useful for borrowers who are unable to get a home equity loan or other types of lending because they do not have enough equity in their property.

A bridge loan can also be used to pay off an existing mortgage in the state so that the borrower can take advantage of lower interest rates from lenders. The money directly from the bridge loan is used to pay off the old mortgage, and any remaining money from the bridge loan can be used for another purpose.

Bridge Loan Rates in California

These are the costs associated with applying for a bridge loan in California:

Administration Fee

The administration fee for a bridge loan is generally between 1% and 2% of the loan amount. This fee covers lenders’ costs in originating and processing the loan for lending, which homeowners and investors have to pay.

Appraisal Fee

The appraisal fee is one of the bridge loan rates used to process and review the paperwork associated with your lending application and to appraise the value of your property for a bridge loan.
An appraisal is required on all new properties that will serve as collateral for a bridge loan, regardless of whether you are using a home equity line of credit or taking out a first mortgage. It is generally around $300-$400 but can be more depending on the value of your property.

Escrow Fee

When refinancing a new property, homeowners and investors may have to shell out hard money for an escrow fee. This is a fee charged by the title company or lenders to cover the cost of setting up an escrow account for a bridge loan. The escrow account is used to hold funds until the loan is closed.

Loan Origination Fee

A loan origination fee is charged by bridge loan lenders for processing new loans by homeowners and investors. This loan fee can be either a flat rate or a percentage of the total loan amount, and lenders typically charge between 0.5% and 1% of the loan figure.

Notary Fee

The notary fee is the fee charged by the notary public for their services pertaining to loans, lending, and real estate. It largely depends on the state in which the loans are being taken out and can range from $75 to $200.

Title Policy Fee

A title policy is an insurance policy that protects lenders against loss if there are any problems with the ownership of the property, whether for loans by homeowners or investors. The fee for this lending and real estate policy is typically between $200 and $300.

Bridge Financing Pros

Flexibility

Bridge loans offer borrowers, whether homeowners or investors, a great deal of flexibility. For one, bridge loans can be used for a variety of purposes, including buying a new property, renovating an existing property, paying off debt, or even taking care of unexpected expenses.

Additionally, bridge loans can have a variety of lending repayment terms and can be structured to fit the unique hard money needs of the borrower.

Consumer Empowerment

Loans can also empower homeowners and investors to purchase subsequent properties to expand their real estate portfolio without having to wait for the sale of their first property. A residential bridge loan can give them the lending opportunity to purchase now and sell later at a higher price.

A bridge loan also provides more negotiating power when making an offer if you want to purchase a new property because the money being offered will be more attractive to sellers.

Time

Bridge loan borrowers are given enough time to settle their finances and include the bridge loan repayments in their budget.

Plus, they can also use the time to secure more permanent lending or financing, whether through refinancing or selling the property. In most cases, the loan is interest-only for 12 to 24 months, giving the borrower time to position themselves for more ideal long-term loans and money.

Faster Application and Payout

The application process for a bridge loan is shorter and faster than that of a conventional mortgage. This is because the underwriting guidelines are less strict for bridge loans. The process typically takes about just one to two weeks.

Additionally, most bridge loan lenders will offer a quick turnaround time for payout, which can be as quick as 48 hours after approval in some cases.

Alternatives to Bridge Loans in California

Home Equity Line of Credit (HELOC)

A home equity line of credit, or HELOC, is a type of home equity loan in California that allows you to fund and borrow hard money against the current value of your property. Just like a bridge loan, a HELOC is relatively flexible but you can typically only borrow up to 85% of the appraised value of your home or real estate from most lenders through these loans.

Home Equity Loan

A home equity loan is a second mortgage on your property, whether it’s real estate in California or other states. These loans are typically for 10 to 15 years, and you pay the fund off in fixed monthly payments with interest.

One major disadvantage of a home equity loan is that it can take up to 45 days to fund, which may be too long if you need the hard money quickly to purchase your next real estate investment.

Business Line of Credit

A business line of credit in California provides you with hard money that you can draw from as needed, making these loans ideal to fund unexpected expenses or take advantage of lending opportunities when they arise.

However, one benefit that a bridge loan has against business lines of credit is that they can be used for a specific purpose, such as real estate transactions on your property, while business lines of credit lending hard money can only be used for general business purposes. As such, this loan may not be ideal for everyone.

Types of Bridge Loans

How Will a Commercial Bridge Loan Help?


Sprint Funding offers commercial bridge loans for those that need cash flow in a short timeframe.

If you’re seeking ways to bridge your current financial needs, we can help you with a commercial bridge loan to secure your resources to grow your business, provided that you put up an investment property.

What is a Residential Bridge Loan?


Sprint Funding is a residential bridge loan lender that can ease your financial burden when you need to pay a down payment for your new home and your existing home is not yet sold.

Typically, the rate for a residential bridge loan will be about 2% higher than for a 30-year, standard fixed-rate mortgage.

We offer bridge loans that you can use as a down payment on your new home so you can sleep soundly at night without having to worry about it.

The residential bridge loan that we offer allows homeowners or real estate developers these benefits:

  • Purchasing of commercial real estate and/or development of a commercial real estate
  • Using the equity from your current home to help you make an offer on a new one, without rushing to sell.
  • Roll the mortgages of two houses together, giving the buyer flexibility as they wait for their old house to sell.
  • A bridge loan can help you secure funding to facilitate the transition to a new home — like for a down payment or mortgage payments.
  • You can pay back the bridge loan with the proceeds once your current home sells.
  • A Bridge loan can afford you the freedom to move on your own terms and secure a new house when you need to, without having to wait for your old house to sell if you need to move within a specific timeframe.
  • A Bridge Loan can help you move to a new house faster while home improvements at the house you’re selling are being done to increase your home’s value.

What is a Small Business Bridge Loan?


The U.S. SBA (Small Business Administration) is an independent agency of the federal government with a mission to help Americans start, build, and grow businesses.

They assist, counsel, and provide financial aid to protect the interests of small businesses.

The Express Bridge Loan helps small businesses cope up with the temporary loss of revenue that they may be experiencing and can bridge the gap while they are applying for an SBA Economic Injury Disaster Loan.

A small business that needs cash urgently may qualify for an SBA Express bridge loan while waiting for the decision and disbursement of an EIDL.

Basic eligibility requirements:

  • Be an operating business
  • Be organized for profit
  • Located in the United States
  • Be small under the size requirements:
    – Government companies with as much as $35.5 million in sales and 1,500 employees depending on the industry.
    – Outside government, companies with less than $7 million in sales and less than 500 employees
  • Be able to demonstrate a need for the desired credit

Terms for the SBA Express Bridge Loan:

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part from the EIDL Loan proceeds.

Sprint Funding offers commercial bridge loans for those that need cash flow in a short timeframe.

If you’re seeking ways to bridge your current financial needs, we can help you with a commercial bridge loan to secure your resources to grow your business, provided that you put up an investment property.

Sprint Funding is a residential bridge loan lender that can ease your financial burden when you need to pay a down payment for your new home and your existing home is not yet sold.

Typically, the rate for a residential bridge loan will be about 2% higher than for a 30-year, standard fixed-rate mortgage.

We offer bridge loans that you can use as a down payment on your new home so you can sleep soundly at night without having to worry about it.

The residential bridge loan that we offer allows homeowners or real estate developers these benefits:

  • Purchasing of commercial real estate and/or development of a commercial real estate
  • Using the equity from your current home to help you make an offer on a new one, without rushing to sell.
  • Roll the mortgages of two houses together, giving the buyer flexibility as they wait for their old house to sell.
  • A bridge loan can help you secure funding to facilitate the transition to a new home — like for a down payment or mortgage payments.
  • You can pay back the bridge loan with the proceeds once your current home sells.
  • A Bridge loan can afford you the freedom to move on your own terms and secure a new house when you need to, without having to wait for your old house to sell if you need to move within a specific timeframe.
  • A Bridge Loan can help you move to a new house faster while home improvements at the house you’re selling are being done to increase your home’s value.

The U.S. SBA (Small Business Administration) is an independent agency of the federal government with a mission to help Americans start, build, and grow businesses.

They assist, counsel, and provide financial aid to protect the interests of small businesses.

The Express Bridge Loan helps small businesses cope up with the temporary loss of revenue that they may be experiencing and can bridge the gap while they are applying for an SBA Economic Injury Disaster Loan.

A small business that needs cash urgently may qualify for an SBA Express bridge loan while waiting for the decision and disbursement of an EIDL.

Basic eligibility requirements:

  • Be an operating business
  • Be organized for profit
  • Located in the United States
  • Be small under the size requirements:
    – Government companies with as much as $35.5 million in sales and 1,500 employees depending on the industry.
    – Outside government, companies with less than $7 million in sales and less than 500 employees
  • Be able to demonstrate a need for the desired credit

Terms for the SBA Express Bridge Loan:

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part from the EIDL Loan proceeds.

General Requirements and Guidelines for a Bridge Loan

We spelled out the general requirement and guidelines for you to secure a commercial bridge loan for your business.

Our dedicated loan specialists will be happy to assist and answer any questions you would have regarding these requirements or guidelines:

  1. Interest Rate: typically 8-20%
  2. Terms: 1-12 months
  3. Funding Amounts: Can range from $50,000 on the low end up to $50,000,000 (based on the capital resources of the loan lender)
  4. Time to fund: 3-10 days
  5. Repayments: Single balloon payment, monthly, daily, and weekly
  6. Collateral required: Usually the value of the property
  7. Time in business: 6 months or more
  8. Types of businesses funded: All types
  9. Financial Information needed: Income, assets, other real estate or business owned, existing debts, and the like, basic information about the property, and other documentation as deemed necessary.
Please note that bridge loans have higher interest rates and transaction costs that we offset with the speed and ease of obtaining your bridge loan.

Why Secure a Bridge Loan with Sprint Funding?

Sprint Funding is a certified bridge loan lender that offers a simple and fast online application process for any type of bridge loan.

Our dedicated and straightforward loan specialists will help you determine if bridge loan financing is right for you.

They will make the process very easy for you to understand letting you know exactly what will happen. We take the time to understand your needs and align them with our bridge loan services.

With our phenomenal service, once you submit all the necessary requirements for a bridge loan, you will get a decision approval within 24 hours.

After the approval, funds will be deposited into your account in no time.

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Sprint Funding can help you get Bridge loan rates fast and hassle-free. We have a tried-and-tested loan specialist team that can help you get the homes you always wanted.

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