e-dennis.net

When is a Bridge Loan Used?

e-dennis.net A bridge loan is appropriate when funding is needed for an immediate need, such as real estate purchases like buying a new house. This is important during financial crisis o cash shortage. Bridge loans can also be used for renovations, conversions, development finance for residential and commercial properties, refurbishment, purchase of commercial property, and purchase of land. The more unconventional uses of bridge loan are funding for dream holiday, for wedding expenses, shortage of case, inland revenue and capital for business,
The amount of the bridge loan depends on the borrowers own needs, the lender, and the borrowers income. Many lenders will not give the full amount of the property and will offer a loan amounting to 70 percent of the property's worth. Standard bridge loans range from 1000 to 50,000.