Some buyers use private money bridge loans to close quickly on a property before refinancing with a conventional or jumbo loan a few months after the close of escrow. That was the case with this 12-month bridge loan in Orange County.
The buyer, an experienced investor, wanted to be able to close quickly in the existing competitive market filled with cash buyers and others able to close in 5-10 days. Instead of going through the 30-45 days conventional loan or jumbo loan process, they used a 12-month bridge loan to secure the property and would proceed with the refinance within 2-3 months.
We’ve seen this strategy used many times, over the past few years, of originating private money loans in a highly competitive seller’s market where cash buyers are the norm.
12-Month Bridge Loan Terms:
- $620,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty