What’s the Difference Between a Ground-up Construction Loan and a Bridge Loan?
In the world of real estate investing, there are many ways to obtain the financing you need to meet your financial goals. Both ground-up construction loans and bridge loans are popular with investors looking to build their portfolios quickly. With a ground-up construction loan, borrowers get money to build the ideal building, while a bridge loan allows a borrower to buy a new property before they’ve sold an existing one. Let’s look at the differences between these two types of financing so you know which one will work for you.
When Should I Not Get a Bridge Loan?
A bridge loan can be a way to get short-term funding to pay down a new property without waiting for conventional financing approval. Since they are short-term loans for only a few years, the interest rates are usually much higher. Some lenders may even require collateral. While this can be a good idea in some cases, it may be better to pursue another method of financing. Our Titan Funding team invites you to learn more about these loans. We will provide a brief overview of when one can be a good idea and conclude with situations with better choices than a bridge loan.
What Are the Pros and Cons of an Adjustable-Rate Mortgage?
An adjustable-rate mortgage, or ARM, is a loan with a low-interest rate for the first 3 to 10 years.