REALFI BRIDGE LOANS CAN HELP YOU
If you find that you need to close a deal fast, RealFi Funding has a new loan product that can help.
Homeowners may find it challenging to sell their existing properties in order to purchase a new one. Likewise, investors may have their money tied up and lack access to funding to make a lucrative deal.
The competition for available properties is intense. However, access to funding can give you a competitive edge in a tight real estate market. The RealFi Quick Loan program may serve as a solution for both types of borrowers.
Keep reading to learn more about RealFi bridge loans.
The Growing Competition in Real Estate
In 2020, the United States housing surplus dipped to record lows as the available housing stock fell nearly 10% compared to the previous year. Entry-level homes decreased by 16% and analysts expect this trend to continue.
As a result, there’s a severe shortage of residential properties in the United States that has forced the housing market sales calendar to move up drastically. While typically the spring is the busy season for residential real estate, the overheated competition for properties has pushed the busy season to begin as early as January.
The market has changed in major cities across the United States like New York, Los Angeles, Houston and Denver. In three of the 100 largest markets in the country, January was the biggest month of the year for real estate purchases and sales.
The cost of real estate is rising and inventory is shrinking. As a result, the housing market has become fiercely competitive.
Buyers have been hitting the market earlier and earlier for these reasons. Those who are actively in the market to purchase property have modified their strategy to navigate this new environment.
Understanding RealFi Bridge Loans
A bridge loan is one of several types of real estate finance products that we offer at RealFi Private Lending, part of the RealFi Financial group of companies. For instance, if you’ve lived in your home for some time, you have available equity that you may be able to leverage to purchase a new property if you desire.
More to the point, you can use it to secure a bridge loan and make buying a new home easier. The short application process for applying for our quick close bridge loan is what differentiates it from other loan products, such as conventional loans.
Most existing homeowners rely on the sale of their homes to find a new purchase. However, closing dates don’t always align as desired.
When this happens, homeowners transitioning from one property to another can find themselves in a precarious situation. However, a bridge loan can serve as the solution.
Bridge loans are ideal for purchasing a new home before selling your existing property. A bridge loan can serve as a form of temporary financing. You can use it as a figurative “bridge” to purchase a new home before selling your first one.
The amount of money that you can access with a bridge loan will vary based on the current market value of your home and what you owe. This difference is called equity. You can use your equity to fund the purchase of your new home.
Seize Opportunities With a RealFi Quick Close Loan
Typically, a bridge loan is a short-term agreement. You may also hear a bridge loan called gap financing, interim financing or a swing loan. Most bridge loan terms last about a year. People will sometimes secure a bridge loan for real estate transactions.
A business, investor or consumer might apply for a bridge loan. Bridge loans are suitable for a variety of situations.
Various kinds of businesses turn to bridge loans to cover expenses while waiting for other revenue. However, they’re also used frequently in the real estate industry.
Typically, an investor or corporation will secure a bridge loan if there’s a gap between the purchase of a property and the sale of another one. Like residential borrowers, they’ll use the loan to cover expenses until the original property sells. For investors, bridge property loans are ideal for taking advantage of fast-moving opportunities because they have a much shorter application, approval and funding timeline.
Bridge loans also offer a unique benefit for real estate transactions. Borrowers can roll the mortgages of the two houses into the loan. This option gives buyers flexibility as they wait for the original property to sell.
An Overview of RealFi Quick Close Loans
RealFi Quick Close Loans are slightly different from the standard bridge loan. At the same time, it has many things in common with this beneficial loan product.
We fund more than $650 million in mortgages each year. RealFi Quick Close Loans are a part of our growing bank financing options.
It’s a new loan solution that we originate. With our RealFi private loan program, we’ve emphasized speed and flexibility.
You can apply for the RealFi Quick Close Loan for both owner-occupied and non-owner-occupied properties. Interest rates for the loan vary depending on the loan-to-value-ratio of your existing property. It also varies based on the type of property.
Furthermore, the rate will differ based on your profile. However, rates will typically fall somewhere between 7% and 8.5%.
The loan will also feature origination points anywhere from 1% to 3%. The origination fee rates are specific to the loan.
The funding timeline of a Quick Close Loan can vary. The speed of the loan depends on the flow of documentation.
It also varies depending on whether you provided all needed information at the start of the application process. In most cases, however, deals can close between three and seven days.
A Closer Look at RealFi Bridge Loans
Investors and consumers can apply for a RealFi Quick Close Loan to purchase a residential property. The loan amount can vary from $150,000 to $1,500,000. However, we may provide funding for up to $2,250,000 in some situations.
The maximum LTV that we finance is 75%. If you’re a foreign national, you can apply with an LTV of less than 70%.
If you want to pay off your existing mortgage, however, you must have an LTV of less than 60% to 70%. Furthermore, you must have equity in the property.
Finally, you can apply for a Quick Close Loan if you’re an investor with an ITIN number and an LTV of 80% or lower. We also offer limited bridge funding for rehab projects. For our rehab loans, we can issue funds in a single draw or with a small holdback.
Finally, all our Quick Close Loans are first-lien loans. However, here is where our program differs slightly from bridge loans.
Most bridge property loans have terms of one year. Our Quick Close Loans may have a term of anywhere from 1 to 30 years. In some instances, you can negotiate interest-only payments for up to the first three years.
RealFi Is Redefining Lending to Meet Your Needs
At RealFi, we specialize in alternative investments. We leverage technology to provide you with the best loan
products possible. In fact, we’re redefining real estate finance.
We provide you with the best experience possible by combining an innovative approach with experienced management. Our state-of-the-art technology combined with our in-house expertise enables us to deliver a seamless, transparent borrowing process. From start to finish—you’ll notice the RealFi difference.
We’re a direct lender. We offer mortgage products in major markets throughout the United States.
More importantly, we believe in a relationship-focused approach to real estate lending. We offer customized financing solutions and certainty of execution. What’s more, we deliver a transparent borrowing experience throughout the entire process.
We founded RealFi to address the need for capital among investors and borrowers. Today, our modern mortgage lending process enables investors and homeowners across the United States to gain an edge in a fiercely competitive real estate market.
With RealFi Funding, you can access the capital you need to close deals and stand out from the crowd.
Your Lifetime Partner in Real Estate Financing
Now you know more about RealFi Quick Close Loans. RealFi is the top source for customized financing solutions. We continue to grow and innovate, adding branches and team members across the nation each year.
Our team includes a diverse mix of legal, financial, management, real estate and other professionals. We offer a unique blend of experience and backgrounds. It is this unique mix of talent that enables us to deliver innovative loan products year after year.
Opportunities are fleeting. A RealFi bridge loan can serve as your solution for winning in an ever-tightening real estate market. Partner with us to meet your real estate funding needs now and in the future.
Contact a RealFi Private Lending mortgage expert today at (800) 601-1917 or connect with us online to learn more about taking advantage of our Quick Close Loan to close your next deal fast.