Bridge Loan FAQ
LendingHome offers fast, reliable hard money financing for your fix and flip projects. Want to know more? We’ve put together some resources and FAQs for you.
What is a Bridge Loan?
A Bridge Loan is a short-term mortgage that is used to finance a property until permanent financing is found, the home is resold, or the home is rehabilitated and then resold. Property investors who fix and flip properties are the most common customers of LendingHome Bridge Loans.
What’s the process to get a Bridge Loan through LendingHome?
The process is simple and reliable. To apply for a loan, start by getting your rate. We’ll ask you a few quick questions about you and the home you’re interested in and then give you a customized rate—all in about 3 minutes. From there, we make it easy to finish a full application from directly within your personalized online dashboard. There you will answer some remaining questions and upload the required documentation. The dashboard will also make sure you know exactly where you stand at each step in the process, even when the loan is going through our underwriting processes. Check out our explanation of how the process works.
When do I get my rate?
Our simple pre-qualification only takes about 3 minutes, and you will get your customized rate immediately. Should any of your information change during the process, we’ll simply recalculate and show you your new rate, in real time.
How long does it take to close?
Timing to close will vary depending on the terms of the individual loan. We will fund loans as soon as possible once we have received all of your information, performed a valuation of the property, and verified documentation. The sooner you provide us with the needed information, the sooner we can push your loan forward to closing.
Are you a broker or a lender?
LendingHome is a direct lender. We lend our own funds to make sure you close reliably and on time. After closing, we generally sell loans to our institutional investors and to individuals on our investor portal.
What loan programs do you offer?
LendingHome offers two programs: Bridge Loans and Consumer Home Loans. Our Bridge Loan program focuses on property investors who need short-term financing for a home they intend to resell for a profit.
Will I qualify for your loans?
You can find out in just 3 minutes. Begin by answering a few short questions, and we’ll give you estimated rates. If anything you told us keeps you from qualifying, we’ll let you know exactly what that is.
What states do you provide Bridge Loans in?
LendingHome currently provides Bridge Loans in Arizona, California, Colorado, Connecticut, Florida, Georgia, Kentucky, Massachusetts, Maryland, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia. This list is growing quickly, so be sure to check back regularly if we don’t currently offer Bridge Loans in your state.
How much documentation do I need to provide?
We ask for the least amount of documentation possible. Once you’re ready to apply for a loan, we will generate a custom checklist for you that details the minimum amount of information you’ll need to provide to us. Our goal is to make the process as simple as possible for you. If you have everything ready, you can be done in about 20 minutes. If not, you can always come back later and finish any remaining tasks.
How does your technology make the financing process easier for me?
You can get your personalized rate within minutes. Your personalized online dashboard makes it easy to know exactly where you stand––see a checklist of documents you need to provide and a timeline of all of the activity happening on your loan, in real time. When you need help, click on button to contact your team of loan specialists. Once the loan has closed, your monthly payments begin seamlessly (usually via ACH auto-debit), and you can track your balances right in your dashboard.
Are you all automated or can I talk to someone?
You can talk to someone any time that you have questions or need help. You can reach your dedicated Loan Specialist via phone or email with one click from your online dashboard.
What are the fees to apply and close?
We’ve streamlined and automated our process to minimize your application and closing fees. For borrowers, there is an application fee of $350 due upon submission of your loan.
At closing, you will be charged a service fee between $499 and $1,195 and a closing fee. The service fee goes towards costs we incur to process and underwrite your loan (e.g., valuation, background check, flood certification, etc.). The closing fee varies by loan program and the rate and terms you select. Fees are net-funded at closing. That means, for example, if you have $1,000 in fees to close on a $200,000 loan, you will be given $199,000 at closing where we keep the difference as our fee.
How will I know the status of my application?
We’ve designed your Loan Dashboard so there are no surprises: when we know something, you know too. Watch your loan as it goes through our process flow. See pending information requests, complete your borrower checklist, upload documents directly, message your team of Loan Specialists, and more.
Do you provide rehab financing?
Yes, we do! We are able to offer funds for light to moderate rehab projects (we don’t finance land or ground-up construction.) In determining how much we are able to offer in rehab funds, we look at the as-is value of the property as well as the estimate after repair value.
Are rehab loans fully funded at closing?
LendingHome keeps rehab funds as a holdback. These funds are held in escrow until after the work has been completed and proof of the work has been submitted. The funds are earmarked for the borrower but not released until the work has been confirmed, at which point a draw is done.
What is your draw process like?
You can choose to obtain your draw in one of two ways. You can either take out small chunks as the rehab is completed or wait until the entire rehab is complete, when you would make one drawdown for the full amount of the project. Draw fees vary between $175 and $199 for each draw.
The process for obtaining a draw is simple: make a request in your borrower dashboard and drag-and-drop your photos, receipts, and other proof of work. We’ll review your submission promptly, and the funds will be released within 3 to 5 business days from the time of review.