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Multifamily Bridge Loans
What is a Multifamily Bridge Loan?
Multifamily bridge loans are short term (12 - 24 month), interest only loans for the purchase and renovation of 5+ unit residential properties. OfferMarket is a private lender for experienced real estate investors.
Why do investors use bridge loans?
The bridge loan, whether for single family (1-4 unit) or multifamily (5+ unit) residential properties, is a powerful financing program that allows real estate investors to purchase properties with minimum down payment, and access a line of credit to renovate the property.
Bridge loans are interest only, meaning there is no principal repayment (amortization) on a monthly basis. Since the investor is only making interest payment and not making principal payments as they would with a mortgage, the investor can conserve cash while the property may be fully or partially vacant and focus on preparing the property for sale or refinance into a longer term loan.
Multifamily Bridge Loan Interest Rates
Our bridge loan index tracks the prevailing interest rate for bridge loans. See how OfferMarket's bridge loan interest rate and terms compare:
Multifamily Bridge Loan Guidelines
| Guidelines: | Multifamily Bridge Loan |
|---|---|
| Interest Rates | see index above |
| Origination Fees | 1 to 2 points (% of loan amount) |
| Property Types | 5+ unit and mixed use |
| Loan Amounts | $500,000 - $25,000,000 |
| Maximum LTV, ARV | 75% |
| Maximum Loan To Cost | Purchase: 80% of As-Is Value and 100% of rehab, Refinance: 75% of As-Is Value and 100% of rehab |
| Term Length | up to 24 months -- +0.5% for months 13 - 18, +0.75% for months 19 - 24 |
| Minimum Guarantor FICO | 650 |
| Ownership | LLC or Corporation |
| Recourse | Full recourse, Limited recourse |
What is the process for getting a multifamily bridge loan?
Timeline: 15 - 30 days
- Get a quote (takes 1 minute)
- Complete processing action items in your My Loans portal
âś… Credit & Background Check âś… Personal Financial Statement âś… Schedule Of Real Estate Owned (track record of experience) đź“„ Download your pre-approval letter đź“„ Download your loan terms âś… Upload entity docs âś… Authorize title order âś… Authorize appraisal order - Schedule closing
