Private Money Bridge Loan In Norco California

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Private Money Bridge Loan In Norco California

First Capital Trust Deeds secured a private money bridge loan in Norco, California for real estate investors acquiring an investment property.

Twelve month private money bridge loans are very common with real estate investors all throughout California. We could say that they are popular, but they’re really not popular. These loans are typically the loan of last resort for buyers who have a few financing hiccups that cannot be overcome before the scheduled close of escrow.

We’ve written extensively on this site about all of the incredibly strong clients we’ve worked with over the past few years who have had trouble securing conventional or jumbo financing. Usually our clients are over the top in terms of strength with 750+ FICO scores, great liquidity, great cash flow, multiple investment properties, etc. Yet, in this lending environment, they run into problems obtaining loans because all their investments give them so many tax deductions, which lowers their adjusted gross income (AGI) so low that technically they cannot show the ability to service a loan.

It’s kind of nuts that a bank would turn these types of borrowers down. But they do and that’s the world we live in. It’s been a great benefit to private money lenders who have been making loans to highly creditworthy borrowers like these clients in Norco since 2009.

At least for most of these bridge loan borrowers, they know that after they file their income taxes early in the upcoming year, showing a little more income than in previous years, they’ll be able to pay off the private money loan at 11.00% and refinance into a conventional loan around 4.00%.  Until then, they use the bridge loan as a means to an end.

Private Money Bridge Loan Terms:

  • $325,000 Loan Amount (60% LTV)
  • 11.00% Interest-Only
  • $2,979/Month Payment
  • 12 Month Term
  • No Prepayment Penalty
Do you have a similar financing scenario?
Inquire about your financing options with FCTD.