Multifamily Bridge Loan

Nonbank Multifamily Bridge Tear Sheet

	Nonbank Multifamily Value Add Bridge Loan	Nonbank Multifamily New Construction Bridge Loan
Loan Amount	$250k - $10mm	$250k - $10mm
Loan Term	12 - 24 months	12 - 24 months
Coverage Area	Most States	Most States
Asset Verification	2 months recent bank statements	2 months recent bank statements
Income Verification	No	No
Time to Close	30 - 45 days	30 - 45 days
Max Leverage	65–75% of purchase price and 100% of rehab cost	75% of total project cost, typically structured as a small portion of the land or teardown cost and 100% of the rehab
Rates, Points and Fees	Private bridge rates	Private bridge rates
Minimum FICO Score	680–720 minimum	680–720 minimum
Sale or Rental Strategy	Both Allowed	Both Allowed
Experience Required	Yes	Yes
Monthly Payment	Interest only	Interest only
Balloon Payment	Pay back the loan balance at sale or refinance	Pay back the loan balance at sale or refinance
Interest Charged on Undrawn Amounts	No interest on undrawn amounts	No interest on undrawn amounts
LTARV Requirement	70–75% LTARV, meaning the loan amount can be no more than 70–75% of the as complete value	70–75% LTARV, meaning the loan amount can be no more than 70–75% of the as complete value

Fix N Flip Loan Calculator

Fix n flip loans and New construction loans are typically 12 month, 18 month, or 24 month balloon loans, interest only, where the borrower intends to repay the loan by either refinancing (taking out) the bridge loan with a permanent loan, or selling the property and repaying the loan at sale.

The "Rehab Holdback Use Factor" is a simplification to help estimate the total monthly interest payments. Our lenders typically don't charge interest on undrawn amounts, so we've included this percentage to adjust for not using the entire rehab holdback amount from the beginning of the loan. Our lenders typically have no minimum term length. They get you on the up front points and fees and then the total interest paid is variable depending on how soon you draw the money and how many months until you pay it back, with no minimum interest.

Purchase Loan Amount ($):

Rehab Holdback Amount ($):

Rehab Holdback Use Factor (%):

Loan Term (# of months):

Interest Rate (Annual %):

Points (% of loan amount):

Lender Fees ($):

Appraisal Fee if applicable ($):

3rd Party, Recording, Insurance, and Title ($):

# of Months to Sell or Refi	3 months	6 months	9 months	12 months
Total Interest Estimate, Sum of Monthly Payments ($):

Output: Up Front Loan Costs:
Output: Up Front Appraisal and 3rd Party Fees:
Total Up Front Loan Cost including 3rd Party ($):

Multifamily 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 Multifamily 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
Building Plans (if needed)
List of permits needed (if needed)
Copies of any permits obtained (if available)

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 Multifamily Bridge Loans?

Nonbank multifamily bridge loans are useful for investors who don’t meet strict bank criteria for full doc loans, or want a process with fewer requirements for their purchase and rehab or ground up development project. These loans are similar in nature to fix n flip loans for 1-4 unit residential, and nonbank new construction loans, except they have more experience requirements and lower leverage than their 1-4 unit counterparts.

Nonbank Clearing Advantages

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