Criteria for multi family bridge loan
A multifamily bridge loan is a short-term financing option that helps bridge the gap between the purchase or refinancing of a multifamily property and the long-term permanent financing. Lenders may have specific criteria for providing multifamily bridge loans, but here are some common factors they consider: Property type: Lenders typically focus on multifamily properties such as apartment buildings, townhomes, condominiums, or mixed-use properties with residential units. The property should be income-producing and have a minimum number of units, often ranging from 5 to 50 units. Property condition: Lenders assess the overall condition of the property to ensure it is habitable and does not have any significant structural or environmental issues. The property should meet local building codes and safety standards. Loan-to-value (LTV) ratio: Lenders consider the loan amount relative to the appraised value or purchase price of the property. They may require a certain LTV ratio, typica...