How Long Does it Take to Get a Bridge Loan?
Bridge loan timeframes for approvals and funding will vary based on the type of lender and type of property being used to secure the bridge loan.
While there are some conventional lenders who will provide bridge loans, banks and credit unions typically prefer to fund long-term loans. Expect an approval and funding timeframe of 30-45+ days from a conventional lender.
A bridge loan from a hard money lender can be approved and funded very quickly, especially when compared to an average timeline of a conventional lender such as a bank or credit union. Conventional lenders typically have a long approval process that requires numerous application forms, various documents and waiting periods.
Hard money bridge loans can be funded sooner than other types of financing, but the process and timeline will vary based on whether the subject property is investment or owner-occupied.
Hard Money Bridge Loan for Investment Property
A bridge loan for investment property from a hard money lender can be approved and funded within days. The borrower will need to first fill out the bridge loan application provided by the lender. Once the application is received by the hard money lender, it can be approved same-day.
The bridge loan approval process can be completed so quickly because hard money lenders are primarily concerned with the value of the property as well as the borrower’s equity in their property. A rough property valuation and simple loan to value ratio are the main considerations for bridge loan approval.
As long as the property has sufficient equity based on the requested loan amount, the bridge loan request has a high likelihood of being approved and being approved quickly.
Once the hard money bridge loan lender has approved the bridge loan request, funding can be completed within 3-5 days if needed.
Hard Money Bridge Loan for Home Purchase
A bridge loan for home purchase (Owner-occupied / Primary Residence) from a hard money lender can be approved and funded quickly, but the funding process will take longer due to the current federal regulations for owner occupied loans.
Once the hard money lender receives the bridge loan application, the loan request can be approved same-day. Owner-occupied bridge loans are subject to regulations that require various mandatory recession periods and other processes that push the minimum time to fund to 2-2.5 weeks.
Funding in 2-2.5 weeks is typically fast enough for homeowners. Once they receive the loan proceeds from funding they are ready to purchase their new home with an all-cash offer or a significant down payment.