A Bridge Loan Program and a Jumbo Loan Program are two distinct types of financing options used in real estate, catering to different needs and situations. Here’s an overview of each:

1. Bridge Loan Program

A bridge loan is a short-term loan used to bridge the gap between the sale of an old property and the purchase of a new one. It allows homeowners to access the equity in their current property before it sells, providing them with immediate funds to purchase a new home. These loans typically last from a few months to a year and are meant to be repaid when the borrower sells their existing home or secures long-term financing.

Key Features of a Bridge Loan:
Short-Term Financing: Usually lasts 6-12 months, though it can sometimes extend up to 24 months.

Secured by Existing Property: Often secured by the borrower’s current home, using the home’s equity as collateral.

Higher Interest Rates: These loans tend to have higher interest rates due to the short-term nature and higher risk involved.

Repayment: Paid off either when the borrower sells their current home or arranges a longer-term loan.

Down Payment Assistance: Can be helpful for homebuyers who need to buy a new home before selling their current property, without the risk of losing out on their new purchase.

Ideal For:
– Homeowners buying a new home before their current home sells.
– Those who need fast access to cash for a property purchase.
– Borrowers with significant equity in their current home.

2. Jumbo Loan Program

A  jumbo loan is a type of mortgage that exceeds the limits set by the Federal Housing Finance Agency (FHFA) for conforming loans. Because it exceeds the conforming loan limit, it cannot be purchased or securitized by Fannie Mae or Freddie Mac, which makes it a “non-conforming” loan. Jumbo loans are typically used for the purchase of high-value homes in areas with high real estate prices.

Key Features of a Jumbo Loan:
Loan Amounts: These loans are larger than the conforming loan limit, which is typically $726,200 (as of 2024) for a single-family home in most parts of the U.S. In high-cost areas, this limit can be much higher.

Higher Risk: Because these loans are larger, they carry more risk for lenders, so they usually require more stringent borrower qualifications.

Down Payments: Jumbo loans often require higher down payments, typically 20% or more.

Credit Score and Debt-to-Income Ratio: Borrowers typically need a higher credit score (usually 700 or higher) and a lower debt-to-income ratio compared to standard loans.

Interest Rates: Jumbo loan interest rates can be higher than conventional loans, though the gap has been shrinking in recent years.

Ideal For:
– Buyers of high-value homes in markets with higher-than-average property prices.

– Those who can afford larger down payments and meet stricter credit requirements.

Key Differences:
Purpose: A bridge loan is used to “bridge the gap” between the sale of a current home and the purchase of a new one, while a jumbo loan is used to finance the purchase of a high-priced home.

Loan Amounts: Jumbo loans are for larger amounts, typically above the conforming loan limits, while bridge loans are generally smaller, meant for short-term use.

Term Length: Bridge loans are short-term (months), while jumbo loans are long-term (15-30 years).

Interest Rates and Risk: Bridge loans tend to have higher interest rates due to their short-term nature, while jumbo loans, being larger and more risky, may also have higher rates but are typically longer-term loans.

Both loan programs serve specific needs and can be essential for homebuyers in different situations.

A Bridge Loan Program and a Jumbo Loan Program are two distinct types of financing options used in real estate, catering to different needs and situations. Here’s an overview of each:

1. Bridge Loan Program

A bridge loan is a short-term loan used to bridge the gap between the sale of an old property and the purchase of a new one. It allows homeowners to access the equity in their current property before it sells, providing them with immediate funds to purchase a new home. These loans typically last from a few months to a year and are meant to be repaid when the borrower sells their existing home or secures long-term financing.

Key Features of a Bridge Loan:
Short-Term Financing: Usually lasts 6-12 months, though it can sometimes extend up to 24 months.

Secured by Existing Property: Often secured by the borrower’s current home, using the home’s equity as collateral.

Higher Interest Rates: These loans tend to have higher interest rates due to the short-term nature and higher risk involved.

Repayment: Paid off either when the borrower sells their current home or arranges a longer-term loan.

Down Payment Assistance: Can be helpful for homebuyers who need to buy a new home before selling their current property, without the risk of losing out on their new purchase.

Ideal For:
– Homeowners buying a new home before their current home sells.
– Those who need fast access to cash for a property purchase.
– Borrowers with significant equity in their current home.

2. Jumbo Loan Program

A  jumbo loan is a type of mortgage that exceeds the limits set by the Federal Housing Finance Agency (FHFA) for conforming loans. Because it exceeds the conforming loan limit, it cannot be purchased or securitized by Fannie Mae or Freddie Mac, which makes it a “non-conforming” loan. Jumbo loans are typically used for the purchase of high-value homes in areas with high real estate prices.

Key Features of a Jumbo Loan:
Loan Amounts: These loans are larger than the conforming loan limit, which is typically $726,200 (as of 2024) for a single-family home in most parts of the U.S. In high-cost areas, this limit can be much higher.

Higher Risk: Because these loans are larger, they carry more risk for lenders, so they usually require more stringent borrower qualifications.

Down Payments: Jumbo loans often require higher down payments, typically 20% or more.

Credit Score and Debt-to-Income Ratio: Borrowers typically need a higher credit score (usually 700 or higher) and a lower debt-to-income ratio compared to standard loans.

Interest Rates: Jumbo loan interest rates can be higher than conventional loans, though the gap has been shrinking in recent years.

Ideal For:
– Buyers of high-value homes in markets with higher-than-average property prices.

– Those who can afford larger down payments and meet stricter credit requirements.

Key Differences:
Purpose: A bridge loan is used to “bridge the gap” between the sale of a current home and the purchase of a new one, while a jumbo loan is used to finance the purchase of a high-priced home.

Loan Amounts: Jumbo loans are for larger amounts, typically above the conforming loan limits, while bridge loans are generally smaller, meant for short-term use.

Term Length: Bridge loans are short-term (months), while jumbo loans are long-term (15-30 years).

Interest Rates and Risk: Bridge loans tend to have higher interest rates due to their short-term nature, while jumbo loans, being larger and more risky, may also have higher rates but are typically longer-term loans.

Both loan programs serve specific needs and can be essential for homebuyers in different situations.

Single-Family (1-4 Units)

Asset Base Capital offers construction loans for non-owner-occupied, single-family properties, condos, and townhomes. These loans are specifically tailored to finance the construction or renovation of investment properties, providing investors with the necessary capital to complete their projects.

Asset Base Capital, our construction loan rates start at 11.29%. Our land and construction loans are typically used to finance both the purchase of the land and the construction of a new property. Reach out to one of our loan analysts to get the most up-to-date information on our loan programs, rates, and requirements. They will guide you through the application process and support you every step of the way.

CONSTRUCTION LOAN GUIDELINES

LOAN CRITERIA

Collateral: Non-Owner Occupied Single Family Properties, Condos, & Townhomes

Rates: Starting at 11.29%

Term: 12 Months to 24 Months

Loan Amount: $100K* – $3M (*Based on Loan Amount)

Minimum Property Value: $150K** (** As-Completed Value)

Credit Score: 650 Minimum

Max. Allowed Loan Amount: As is – up to 75%

ARV: up to 85%

Leverage Based on Experience: Documented experience in the past three years

COMMERCIAL LOAN PROGRAM
Multi-Family, Mixed Use, Apartment Complexes, and More

Rich Capital’s commercial loans cater to investors seeking financing for commercial real estate properties or projects.
These loans are distinct from residential mortgages and are tailored to the unique needs and requirements of commercial real estate investments.

Commercial real estate loans from Rich Capital may be used to finance various types of commercial properties, including office buildings, retail spaces, industrial properties, multifamily buildings, and more.

Commercial loan rates can vary depending on factors such as the property’s value and condition, the loan-to-value ratio, and market conditions. Rich Capital offers commercial loans ranging from small to large amounts, depending on the specific needs of the borrower and the scope of the project.

Working closely with our lending professionals will help borrowers navigate the application process and secure financing that aligns with their investment objectives.

COMMERCIAL LOAN GUIDELINES

KEY FEATURES:

Loan amounts up to 7.5MM
Up to 85% LTV
Nationwide financing
First-time investors in commercial are welcome
Min FICO 660
Great for qualifying self-employed investors and small business owners

PROPERTY TYPES:

Apartment Complexes
Multi-family
Mixed use (Residential in nature)
and more