Commercial Bridge Loan

Commercial and Mixed Use Property Bridge Loan Tear Sheet

Loan Amount	$250k - $5mm
Loan Term	12 - 36 months
Coverage Area	Most States
Income Verification	No
Time to Close	30 - 45 days
Max Leverage	65% of appraised value for refinances. 70% of purchase price for purchases.
Cash Out Refi	Allowed
Asset Verification	2 months recent bank statements
Rates, Points and Fees	Private bridge rates
Minimum FICO Score	680 minimum
Sale or Rental Strategy	Both Allowed
Rural Locations	Not Allowed
Experience Required	Yes
Monthly Payment	Interest only
Exit Strategy	Pay back the loan balance at sale or refinance.
Minimum Interest	6 months
Eligible Property Types	Office, Retail, Light Industrial, Mixed Use

Commercial Bridge Loan Process

Step 1- Initial Discussion, Loan Application, and Term Sheet

Discuss the loan scenario including rehab construction plan, costs, and end value
Suggest relevant loan programs and provide parameters
Scope of Work form and recent experience schedule (we can get this over the phone too)
Loan application and initial info request (we can get this over the phone too)
Term Sheet and Appraisal Fee

Step 2- Initial Info Required for Commercial Bridge Loan

Any remaining info points to complete the Loan Application
Photo of ID and void check
Contact information for your title agent and insurance agent
If borrower is an LLC, then LLC Operating Agreement and EIN Letter
Bank statements with cash to close and required reserves for Purchases

Step 3- Appraisal, Title, Insurance, and Additional Info from Borrower

Appraiser visits the property and completes the appraisal report
Lender reviews the appraisal report, internally re-checks value and reviews for property condition
Title agent provides title policy, works with lender on revisions and clarifications
Insurance agent provides insurance policy, works with lender on revisions and clarifications
Lender usually comes up with other things to ask for from borrower

Step 4- Final Underwriting, Closing, and Funding

Lender sends complete file to underwriting, and they may find issues or require more things at that point
Final coordination between title company and lender on loan docs and scheduling
Closing and Funding

Why Use Nonbank Clearing Commercial and Mixed Use Property Bridge Loan?

Nonbank commercial and mixed use property bridge loans are useful for purchasing or refinancing commercial property without the rigamarole of a full doc bank loan for commercial property. Some of these scenarios can also be met with DSCR loans for commercial and mixed use property (link). Bridge loans are for scenarios where the borrower can pay back the loan within months, as opposed to a term loan, which can be serviced over time with property-level cash flow.

Nonbank Clearing Advantages

Competitive rates and structures (multiple lender outlets)
Familiar with commercial bridge underwriting and lender guidelines
Excellent service and simplified loan processing