Bridge Loans
Short-term financing solutions when timing is critical for your investment opportunities, with fast approval and flexible terms.
Key Details
Interest Rates
Rates vary based on property type, loan-to-value ratio, and borrower experience
Repayment Terms
Interest-only payments with balloon payment at maturity
Quick Approval
For qualified applicants
Eligibility Criteria
- Minimum credit score of 600
- Clear exit strategy (refinance, sale, or other repayment plan)
- Property value with sufficient equity position
- Demonstrated ability to execute on the business plan
- Minimum loan amount of $250,000
- Experience in similar projects or investments
- Liquid reserves to cover at least 6 months of payments
Important Note
Meeting the eligibility criteria does not guarantee loan approval. Each application is evaluated on a case-by-case basis, considering multiple factors including credit history, business performance, and market conditions.
Associated Fees
| Fee Type | Description |
|---|---|
| Origination Fee | 1.5% to 3% of the loan amount |
| Underwriting Fee | $2,500 - $7,500 |
| Exit Fee | 0.5% to 1% of the original loan amount (may be waived with refinancing through Fargin Capital) |
| Extension Fee | 0.5% to 1% of the outstanding balance if extension is needed beyond original term |
| Third-Party Reports | Appraisal, environmental, and other necessary reports (costs vary by property) |
Additional fees may apply based on specific circumstances. Please consult with your Fargin Capital advisor for a complete breakdown of all potential costs associated with your loan.
Key Benefits
Close in as little as 7-10 business days
Minimal documentation compared to conventional loans
No prepayment penalties
Loan amounts from $250,000 to $20 million
Interest reserve options available
Non-recourse options for qualified borrowers
Ability to finance distressed properties or time-sensitive opportunities
Seamless transition to permanent financing through our loan programs
Frequently Asked Questions
What is a bridge loan and when should I use one?
A bridge loan is a short-term financing solution designed to 'bridge' the gap between immediate capital needs and long-term financing. They're ideal for time-sensitive opportunities such as property acquisitions at auction, preventing foreclosure, taking advantage of distressed property sales, or covering costs during renovation before refinancing or selling.
How quickly can I get funded with a bridge loan?
We can close bridge loans in as little as 7-10 business days from application, depending on the complexity of the transaction and how quickly you can provide required documentation. For urgent situations, we offer expedited processing for an additional fee.
What is an 'exit strategy' and why is it important?
An exit strategy is your plan for repaying the bridge loan at the end of its term. Common exit strategies include refinancing with a conventional loan, selling the property, or securing other long-term financing. A clear and viable exit strategy is crucial for bridge loan approval as these loans are not designed for long-term financing.
What loan-to-value (LTV) ratio do you offer on bridge loans?
Our bridge loans typically offer up to 75% LTV based on the as-is value for acquisitions, and up to 75% of the after-repair value (ARV) for renovation projects. Higher LTV ratios may be available for experienced borrowers with strong track records.
Can I use a bridge loan for construction or major renovations?
Yes, we offer bridge loans specifically designed for renovation and construction projects. These loans include a renovation reserve that is disbursed in draws as work is completed and verified. This allows you to acquire and improve a property before securing long-term financing based on the improved value.
Ready to Get Started?
Our team of experienced loan advisors is ready to help you secure the financing you need for your business.