As the term implies, a bridge loan "bridges the gap" between times when financing is needed. They are used by both corporations and individuals and can be customized for many different situations. Bridge loans are short-term interim financing solutions. Typically, bridge loans are used until a permanent form of financing can be obtained. Money from the new financing is generally used to pay back the bridge loan, as well as other capitalization needs. Rather than waiting for a standard financing product, savvy investors realize that there are many reasons to pursue a bridge loan.

 

In many cases, investors will lose a valuable real estate opportunity if they wait for the conventional loan process which can take at least 30 days and sometimes longer. In other scenarios the property does not qualify for conventional financing due to structural, zoning or repair issues. A bridge loan allows the Borrower a period of time to repair the property until permanent financing is available. Wasatch Credit Association can provide a fast, cost-effective solution in the form of a bridge loan.