New Jersey Bridge Loans
Rates Starting at 8%
The fastest Bridge Lender in the state of New Jersey.
We lend directly using our own capital
- Instant pre-approval on the phone
- Funding typically within one week; two weeks for larger loans
- Loan amounts up to $10 million
|Loan Size||Up to $10 million|
|Loan to purchase (residential)||80% of Purchase Price|
|Loan to purchase (commercial/industrial)||70% of Purchase Price|
|LTV||75% of the ARV|
|Term||1 to 3 years|
|Lien||First lien; additional second liens accepted|
|Points||1–3% of the loan amount|
We provide Bridge Loans in the following counties in New Jersey:
- Hudson County
- Bergen County
- Passaic County
- Essex County
- Morris County
- Sussex County
- Warren County
- Union County
- Somerset County
- Middlesex County
- Hunterdon County
- Mercer County
- Monmouth County
- Burlington County
- Ocean County
- Atlantic County
- Cape May County
Read more about getting a Bridge Loan in the following areas:
Why Use a Bridge Loan
- Much faster funding times. We operate on a completely different schedule than banks because we only underwrite the value of the property. This means funding times within 7 days for most deals. We can even fund in 2-3 days if you have an existing appraisal.
- Force appreciation. Investors looking to create value will look to buy properties that have below market rents or need substantial rehab. While banks will not fund to the full potential of these properties (if they can fund at all), we will. Our bridge loans allow you to get temporary funding to stabilize the properties before refinancing with a bank or flipping.
- Rebuilding Credit. Together with you, we are in the real estate business, not the personal credit business. While we may check your credit history, most of our lending criteria surrounds the property itself. We offer bridge loans even if you have bad credit.
- Funding for your business. As a real estate investor, it’s best to avoid liability by holding assets in an LLC not in your personal name. Our bridge loans are always made to your business.
Why Choose a NJ Bridge Lender
Get the trusted experience of a New Jersey Bridge lender, that combines the old-world personal touch with the lighting fast technology, decision making, and loan processing of today. Offering bridge loans for fix and flips, mixed-use, commercial, or industrial properties, we are a one stop solution for all your real estate funding needs.
Financing You New Jersey Real Estate Investment
Whether you are looking for a bridge loan in northern NJ, central NJ, southern NJ, or the Jersey Shore, we cover all areas of the state. Because we are a local lender, we know the town ordinances and zoning laws and can help you navigate them.
As an added benefit, having us as your lending partner allows you to gain access to our network of contactors, appraisers, legal counsel, and brokers.
Bridge Lender for Asset-Based Real Estate Loans
Our bridge lending program can fund smaller single-family homes, retail stores, as well as larger office buildings and warehouses.
Loan terms range from 12 to 36 months. If you have a need for a very short duration loan of only a couple of months, we can help there as well.
No situation is too complex. When others pass, we fund.
What are bridge loan lenders?
Bridge lenders are asset-based, alternative (non-bank) lenders, which evaluate the underlying property much more than the borrower when making lending decisions. The opposite is true with a bank loan. While both banks and bridge lenders issue mortgage loans, the lending criteria for a bridge loan is significantly different.
Shorter Underwriting Process. The bridge loan underwriting process is much shorter than a bank’s underwriting timeframe. New Jersey bridge loan lenders can often fund the loan within 1-2 weeks, whereas banks typically take 3-4 months to make the same loan.
More Property Funding Options. Bridge lenders fund properties that most banks will not fund. This includes property that requires substantial rehab, or missing key residential features such as a kitchen, or bathrooms. The property might also have structural issues, code violaitons, or missing a CO. Additionally, New Jersey bridge lenders can provide loans to real estate investors looking to refinance their existing debt from lenders, while also helping the investor to cash out on a property.
Accessible with Low Credit. Banks often refuse to lend to someone with a lower FICO score, whereas bridge loan lenders do not require a high credit score. This makes them ideal for someone with poor credit.
It’s also important to keep in mind that bridge loan lenders only lend on investment real estate and do not make mortgages for residential purposes. At closing, the borrower affirms that they will not reside in the property. Renting the property out, however, is allowed.
How do bridge loan lenders work?
Bridge loans are much faster to obtain (and easier) than a loan from a bank, which means the interest rates vary between 8% and 11%. Additionally, borrowers can expect there to be anywhere from 1 to 3 points charged at closing, and the typical duration of the loan is 12 to 24 months, with 12 being the most common. The total loan amount, which includes funds for the property purchase and funds for the rehab, should not exceed approximately 67% of the property After-Repair-Value (ARV).
A bridge loan will involve funding a portion of the purchase price, and when applicable, funding any rehab that needs to be done. The loan amount is between 70% to 85% of the purchase price, depending on the property type, plus 100% of the rehab required. The rehab portion is distributed in arrears once a portion of the work is completed. For example, if the total rehab amount for the property is $30,000, the borrower will complete the first round of work for $10,000, and request the draw. Once that amount is used on the next portion of work, the borrower can request an additional $10,000, etc.
What do bridge loan lenders look for?
Our New Jersey bridge loan lenders at West Forest Capital typically have the following requirements:
- Bridge lenders only make loans to LLCs and not to individuals since the loan is considered a commercial loan. While starting an LLC might sound intimidating, they are very easy to create.
- Properties purchased at market value or below – and thereby creating equity for the borrower – are helpful when obtaining a bridge loan. Bridge lenders will want to ensure both the purchase price and the ARV “make sense.” An appraisal will be ordered to assess this.
- Additionally, if the loan is being used for property rehab purposes, the bridge lender will need to ensure the repairs are done according to a rehab schedule which lists out the scope of work and associated costs.
- It is important for bridge lenders’ collateral lien to be in first position, so a clean title report is needed.
- Lastly, the deal must make sense for all involved – for the bridge lender and for the borrower. This means that the purchase price should be low enough that when added to rehab costs and soft costs (such as closing fees and interest), there is enough spread in the deal to make it profitable for the borrower.
What are bridge loans used for?
New Jersey Bridge loans can be used for:
- Fix-and-flip properties that traditional banks refuse to lend on due to either poor borrower credit or the property itself not fitting bank underwriting standards.
- Properties that have below market rents that will be purchased, stabilized (rent increased), and refinanced with a traditional bank at a lower rate.
- Funding investment real estate purchases that need to be done in a timeframe that a traditional bank cannot meet. Bridge loans can be issued within 1-2 weeks, whereas a bank might take 3-4 months or longer.
- Refinancing a property to raise cash fast for another investment or project.
- Refinancing an existing mortgage that is maturing.
- Purchasing property under an LLC. Traditional banks rarely fund LLCs.