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Bridge Loans

Need A Bridge Loan? Get Approved Today!

A Bridge Loan is a short-term loan that helps homeowners bridge the gap between the time that they receive money from the sale of their current to the time that they require the money for the down payment for their new home. At Clover, we specialize in providing bridge loans for new home or commercial property purchases to borrowers even if they have not yet sold their original property.

You as a homeowner will most likely buy more than one home and move at least a few times throughout your life. You might need to change locations for work or personal reasons, you may want to upgrade to a bigger or newer home, or you may decide to downsize to a smaller home. Whatever the reason, you will most likely want to use part of all of the money you earn when you sell a home towards the down payment of a new home. In some cases, people find themselves in a situation where their closing date for buying their new home falls before the closing date of selling their current home.

In other words their house has not sold in time to give them the funds to put a down payment on the new home they are purchasing. This is where a bridge loan can really help by using the equity in your current home as collateral for a loan to put towards the purchase of your new home. This type of loan is usually a short term solution that ranges from a few months all the way up to one year. Clover can help you get this kind of loan using collateral like real estate or other assets.

How much money can you get with a bridge loan and for how long?

Lenders will need to evaluate a borrower’s specific situation in order to give a borrower a maximum loan amount. Based on this information, the lender will also determine how much time the borrower will have to pay the loan back. In most cases lenders are comfortable lending up to $200,000 for as long as up to 1 year. If more time or money is needed, the lender will need to consider various factors in order to decide if you qualify. Keep in mind for larger and longer loans a lien may need to be registered on your property. A qualified mortgage agent can help you determine the best course of action to take, and find the right lender for your specific needs and situation.

How is a bridge loan calculated?

Here’s a simple example to help you better understand how a bridge loan is calculated. If you are looking to purchase a new home and the closing date is in 25 days, meanwhile the closing date for the house you are selling is in 75 days a bridge loan would cover the required for the 50-day period (75 days – 25 days = 50 days) after you close on the purchase.

To better understand the process lets use an example, you are purchasing a new home for $500,000 and you have put down a 5% deposit (in this case that would be $25,000), but you wish to use the remaining $240,000 of equity in your current home to put towards your new home. The problem is that there is a 50-day gap between the sale of your current home and the closing date for the purchase of your new home. This leaves you with insufficient funds to close on the purchase in time. In this scenario a bridge loan would be ideal choice to help “bridge” together the gap between the selling of your current home and the purchase of your new home. A bridge loan will give you the funds to pay the difference between your deposit and your total amount due while you wait for the sale of your original property to close.

Are there any additional fees?

As with any loan, a bridge loan has interest, though it is generally similar to a rate you would expect from a personal line of credit. You can expect a bridge loan to be higher than your first mortgage rate, and it generally falls around the prime rate + 2% mark. In some case it can be up to 3% over prime, but that depends on a variety of factors. A bridge loan is issued over a short period of time, and will be repaid when the equity of your previous home is collected after the sale closes.

Typically in addition to the small interest applied to you loan there is a flat administration fee which is usually between $200-$500. If you need a loan that is more than $200,000, the lender might register a lien on your property. In this case you will also need to hire a real estate lawyer when you pay the loan back and want to remove the lien. Your mortgage agent can provide you with 3 or more different real estate lawyer recommendations if you don’t have one already.

How to qualify for a bridge loan?

To apply and qualify for a bridge loan you will need to provide the lender with a copy of the original purchase agreement for your new home, and a copy of the sale agreement for your current property. However if your closing date is not firm, then you will need to turn to a private lender because most banks and traditional lenders will require a firm closing date in order to approve you for a bridge loan.

How can bridge loans be used for businesses?

If you are a business and find that you are waiting for long-term financing, but you need cash to manage expenses in the meantime, than a bridge loan might be a great temporary solution. A business bridge loan can help cover utilities, rent, payroll, inventory costs, and more while you wait for your long-term financing is ready.

How do bridge loans work in real estate?

Why Work With Us

Low Rates

*Bridge Loan Rates start as low as 5.49%

*Rates are subject to change. Terms and conditions may apply.

Fast Service

We pride ourselves on quick, easy & honest service. Our clients always come first.

Bad Credit

We specialize in dealing with bad credit & bank declines. We turn a “no” into a “YES!”

Easy Application

*No credit checks. No complicated application.

*Terms & conditions may apply.

Call or text us today at 416-674-6222 or toll free at 1-800-673-2230 for a Free No-Obligation Mortgage or Bridge Loan consultation.

Our Customers Love Us

Sandra F.

I was in debt and needed help getting back on track. My mortgage agent at Clover Mortgage helped me get approved for a home equity loan to consolidate all of my debt in one small monthly payment. Now I’m saving over $1,000 a month in interest and am left with less debt and more money in my pocket at the end of each month. Thank you Clover!

David J.

I’m a self employed independent contractor. I earn a decent income, but when I went to the bank to refinance my home, they denied my application telling me that I didn’t have enough “provable” income to qualify for refinancing my home. When I came to Clover I was almost out of hope. My Mortgage Agent at Clover was caring and professional, and help me get a great rate and flexible terms on full refinance. The whole process took less than 48 hours! I was impressed at how quickly and easily they were able to get me the money and home refinance I needed. Thank you Clover Mortgage, I’m recommending you to everyone I know!!

Andrea R.

I had really bad credit, but really wanted to purchase a Condo. When I went to the bank they made me go through a lengthy application process that took weeks, and then they turned me down at the end of it all. When I found Clover Mortgage online, I called them and a friendly Mortgage Agent was able to help me get approved for a mortgage quickly and hassle-free. I got a good rate and now live in a home that I am comfortable in and am able to easily afford my monthly payments.

Ankur R.

I definitely recommend Clover Mortgage to any new home buyer! They were very professional and helped my husband and I get mortgage for our new home at an even better rate than the bank was offering us. They also helped us get the mortgage with a smaller down-payment than the bank demanded from us. Since we did our mortgage with Clover, several of our friends and family members got their from them also, and Clover Mortgage has been able to help all of them, even the ones that were completely turned away and rejected by their banks.

Janet L.

My husband and I found ourselves in a tough situation. Luckily my expert mortgage broker at Clover Mortgage helped us get a fast and easy approval for an amazing rate for refinancing our home. Clover’s service is the best I’ve ever experienced and I’ve been recommending them to all of my family members and friends ever since. Thanks for your help Clover!

Raj I.

I definitely recommend Clover Mortgage to any new home buyer! They were very professional and helped my wife and I get mortgage for our new home at an even better rate than the bank was offering us. They also helped us get the mortgage with a smaller down-payment than the bank demanded from us. Since we did our mortgage with Clover, several of our friends and family members got their from them also, and Clover Mortgage has been able to help all of them, even the ones that were completely turned away and rejected by their banks.