Bridge Loans

Bridge loans are designed for real estate investors for short term funding for investment properties.  The loans 1-2 year loans allow you to secure or refinance a property while you prepare to qualify for conventional financing or sell the property. Typically, the loan consists of the acquisition (buy or refinance) costs and can sometimes include the interest payments.  There are numerous reasons investors use bridge loans, from credit issues to lease up, to faster acquisition over conventional loans.

Banks take a long time -sometimes months –  to approve loans, and often have much stricter criteria to approving deals.  If you have your information ready, we can close in days or weeks. Hard money lenders have more flexibility in lending.  Insteading of focusing heavily on your financial background, we look at more common sense things like the project potential, your experience, and your financial history.  Hard money lending isn’t for everyone, but is a good alternative to consider depending on your circumstances.

You may use a bridge loan to acquire a property faster than using conventional loans and then refinance once you have control of the property. Or, you could use a bridge loan to establish or improve the tenancy before refinancing into conventional financing.  

There’s a multitude of reasons investors use Bridge loans.

Interest rates start at a competitive rate.  There are dependent on a number of factors, including project type and complexity, value of the project, loan size, location, and borrower experience.

Norfolk Capital was founded and led by a team that has decades of development and borrowing experience yourself. This means you get a team that understands your needs and can help you get the best program for your situation. When you work with Norfolk Capital, you get more than a lender, you get a team that’s on your side, focused on your success. 

We fund all kinds of projects, including: 

• Residential properties with 1-4 units
• Multifamily projects with 5+ units
• Mixed-use projects
• Commercial properties

We fund all types of situations, from acquisitions to refinance, and from buy and hold to sell. 

The application process is quick.  Click here to get started. 

Be prepared with: 

Information about the project 

• Address
• Property Type
• Acquisition cost
• Information about yourself: 
• Experience with similar projects
• Job and stated income
• Liquidity (cash and retirement accounts)
• Other real estate owned
• Credit score – But keep in mind that low credit is not a barrier to getting a loan, but we like to understand how you manage your finances.  

Documentation may depend on the situation and requirements, but typical requirements include

• Sales Contract
• Construction Budget
• Bank statements
• A list of properties you currently own (an REO Schedule)
• Experience with Similar projects
• Credit and background checks
• Rental income (for rental projects)
• Two years of tax returns
• LLC Operating Agreement or Articles of Incorporation

Liquidity at closing depends on a number of factors, but will include funds for: 

• Down payments as low as 10% of acquisition
• Money to start work on your project
• Closing costs and loan fees
• Interest payment reserves

Some of this will be collected at closing, some of it we will want to see in your bank statement to make sure you have the liquidity to keep the project moving. 

While traditional banks will typically take at least a month to close, we can close in a few days, though this is not the norm.  An appraisal is typically what holds up the process, those this is not always required for a loan.  If you want to close quickly, make sure you respond quickly to documentation requests and have everything ready.  

AL, AK, AR, CO, CT, DE, DC, GA, HI, IL, IN, KY, LA, ME, MD, MA, MI , MS, MO, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, WA, WV, WI, WY

We only lend to non-owner occupied properties held by a corporate entity.

Hard money loans are focused on asset-based underwriting.  As a result, credit score is less important than the project and other factors such as your experience.  We’ll want to understand the situation behind your credit score, but borrowers with bad credit qualify for hard money loans all the time.