A bridge loan is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing property. The qualifications for getting a bridge loan vary depending on the lender, but generally, you will need to meet the following criteria:
- Strong credit score: Lenders typically require a credit score of 680 or higher to qualify for a bridge loan.
- Sufficient equity in your current property: Lenders will want to see that you have enough equity in your existing property to use as collateral for the loan.
- Adequate income and assets: Lenders will want to see that you have sufficient income and assets to repay the loan.
- A solid plan for repayment: Lenders will want to see a clear plan for how you will repay the loan, typically through the sale of your existing property or through long-term financing.
- A property that is likely to sell quickly: Lenders will want to see that the property you are purchasing is likely to sell quickly, so they can be assured that they will be repaid in a timely manner.