Four Types of Loans Where TBG Funding is Not the Answer
Although bridge lenders often lend when traditional institutions don’t, there are still certain criteria that can automatically disqualify a loan application from going through.
If your company is considering applying for a bridge loan, make sure you aren’t bringing any of these factors to the table:
Loans That Aren’t Backed Real Estate
All bridge loans are backed by collateral, but at TBG Funding, only specific types of collateral are considered. In order for your company’s loan to be approved, we need to be able to secure the loan with a first mortgage on your real estate asset.
Loans That Have No Viable Exit Strategy
Because of the nature of bridge loans, a proper exit strategy is crucial in order to get approval for funding from a bridge lender. Before considering funding any loan, a bridge lender must determine that you have a well-developed plan for paying it back. If you have no defined strategy for paying back the loan in case of default, your loan request will be declined.
Owner-Occupied Homes
At TBG funding, we lend only on investment properties. Due to the nature of residential mortgages and their accompanying requirements, we don’t lend on owner-occupied residences.
Not Enough Skin in the Game
A common scenario where a bridge loan request will be turned down is a case where the borrower doesn’t have enough of a down payment to put toward the purchase of the property, or if they don’t have enough equity to borrow against in a property they already own. Some real estate investors incorrectly assume that a bridge lender will finance 100% of a property’s value. At TBG Funding, we require our borrowers to have significant “skin in the game”, which acts as an incentive for borrowers to complete the project and pay back the loan in full.
Reach out to the TBG Funding team for all of your private lending needs.
Call us at 718-705-9300.