Bridge loans are short-term financing options that help borrowers “bridge” the gap between the sale of their current property and the purchase of a new one. These loans are typically used when immediate cash flow is needed, but the sale of an existing property hasn’t been completed. Here’s a closer look at how bridge loans work:

1. Purpose and Use
   • Bridge loans provide immediate funding for the purchase of a new property while waiting for the sale of the existing property.
   • They can also be used for urgent renovations or repairs required to sell a property at a better price.
2.  Loan Structure
   •  These loans are short-term, usually lasting between 6 months to 3 years.
   • They are structured as interest-only payments with a balloon payment at the end or as a lump-sum repayment when the existing property sells.
3. Qualification and Criteria
   
   • Bridge loans have more flexible qualification criteria compared to traditional loans. At KRA Private Mortgage Funding, we look beyond just credit scores, considering the equity in your current property and your overall financial health.
4. Application Process
   • Apply by providing detailed financial documents, including information about your current property, the new property, and your overall financial situation.
   • Our team at KRA simplifies the application process, offering personalized assistance and quick approvals. Click here to complete an application online. E-mail your completed application to kristi@kraprivatemortgage.com.
5. Repayment Options
   • Repayment is typically made through the proceeds from the sale of your current property.
   • Flexible repayment terms are available to suit your financial situation, ensuring you can comfortably manage your finances during the transition.

Bridge loans can be a valuable tool for homeowners and real estate investors needing immediate funding. At KRA Private Mortgage Funding, we offer customized bridge loan solutions that align with your financial goals and timelines.