$875K Bridge Loan

  • 12 Month Terms
  • Up to 75% LTV

This professional property rehab client was in need of a prompt loan solution for a bridge financing opportunity. The project involved a property with a value of $1.2 million that required immediate funding for various purposes, such as acquiring the property, and covering renovation costs. In response, Insignia Capital provided an $875,000 bridge loan with 12-month terms, providing the borrower a year to execute their plans and repay the loan.

The phrase ‘Up to 75% LTV’ signifies the Loan-to-Value ratio, a financial metric used by lenders to assess the risk associated with a loan. LTV represents the percentage of the property’s value that the lender is willing to finance. In the case of this bridge loan, Insignia Capital was prepared to offer financing of up to 75% of the appraised value of the property. For instance, if the property’s appraised value stood at $1.6 million, the lender would be willing to provide a loan of up to 75% of that value, equivalent to $1.2 million.

It is important to acknowledge that the terms and conditions of bridge loans can vary depending on the lender and the specific circumstances of the borrower. These loans typically serve as short-term financing solutions that bridge the gap between immediate financial needs and long-term financing arrangements. Due to the nature of bridge loans, which often involve time-sensitive transactions and higher risk, they may come with relatively higher interest rates and fees compared to traditional loans. Please contact Insignia Capital for our latest rates and programs.