Bridge Loans

Bridge Loans for Residential Investment Properties

Whether you are a novice investor or an experienced real estate investor, Omni Fund Loan Group has a reputation of providing the best rental property loans to help investors with their short or long term goals.

Short Term Financing Options for Multifamily

The most important decision investors will make when financing a property is to find the right mortgage that fits within your needs and investment goals.

Bridge loans for 2-units, 3-units, 4-units or 5 or more residential units.

Experienced in all types of mortgages with the best solution for you.

bridge loan to buy rental property

    Bridge Loan Details

  • Individual or multiple properties
  • Single-family, condo, townhome, multifamily
  • $200k – $20 million
  • 6 to 24 month terms, plus extensions
  • Interest Only payment
  • Owner-occupied or non-owner

Loans from $200,000 up to $20 million

 eligible properties

Bridge Financing for Residential Property

The overwhelming majority of bridge loans are for investment property. We also have a bridge loan for a primary home for loan amounts over $750,000

The decisions you make today will have financial consequences for the years to come. That's why it's important to partner with an experienced mortgage expert.

Popular Bridge Loan Questions

Does a bridge loan add to my debt to income ratio? + A bridge loan can add to your debt to income ratio if you are taking on additional debt to finance the loan. However, if the loan is structured to pay off existing debt, it could potentially lower your debt to income ratio. Most bridge loan lenders already understand it will add to the ratio but will disregard it due to your property being listed for sale and selling in the next 6-12 months.
Am I able to get 100% of the target property's value? + Typically, bridge loans allow borrowers to obtain up to 80% of the target property's value. However, in some cases, lenders may offer loan amounts of up to 90% if your current rental or primary property is worth much more than the target property.

Example: bridge loan property is worth $2 million with just $100k owed while the target property is selling for just $$1,000,000.
What happens if the bridge loan is not fully repaid after 12 months? + If the bridge loan is not fully repaid after one year, the borrower will face penalties and high interest rates. The lender may also initiate legal action to recover the unpaid amount. Getting an extension depends on the lender's policies and the borrower's ability to negotiate new terms and conditions.
What are my exit strategies if my home does not sell within 12 months? + If your home has not sold when the bridge loan becomes due, your exit strategy may involve refinancing the loan or negotiating an extension with the lender. Another option is to seek out alternative sources of financing, such as a personal loan or line of credit, to cover the outstanding balance. Ultimately, it will be important to have a solid plan in place to avoid defaulting on the loan.
How long does it take to get a bridge loan funded? + On average, a bridge loan on a residential 1- to 4-unit property takes between 3 to 10 business days mainly due to appraisals and confirming your collateralized property is in condition to be sold.
What are the cons of getting a bridge loan? + The interest rates and fees are higher than other forms of real estate financing, which can make some hesitate. The lender charges higher fees due to higher risks on the loan such as high debt to income ratios and relying on the equity in your property being used as collateral. This is an equity based loan, not a traditional loan that relies on debt ratios under 50 and verifying two-years of employment.
What are the advantages of a bridge loan? + Bridge loans offer a 10-day or less financing option for homebuyers and investors looking to purchase a new home while still owning their current property. With bridge financing, borrowers can avoid the stress and inconvenience of having to sell their existing home or rental property first before buying a new one. Additionally, with the ability to present purchase offers with all-cash or a higher down payment through a bridge loan can often make a borrower's offer more appealing to a seller, increasing the likelihood of their offer being accepted.
Will I have to make payments on both homes until the current home is sold? + No. The bridge loan payments for the target property do not need to repaid until after your home or rental property is sold or in 12 months when it is due in full.