Our client was under contract to purchase a vacant lot of land in Miami, Florida. As most borrowers do, he took his chances and applied for a traditional loan. However, he had several income issues, including:
- Negative adjusted gross income on his tax returns due to his self-employment status;
- No steady track record of income from his recently acquired short-term rental properties;
- Unacceptably high DTI as a result of the aforementioned income limitations.
As a result of his DTI issues, the lender denied his loan application.
That’s when his realtor introduced us to him. They needed help to get the deal closed.
With the closing deadline around the corner, a bridge loan was perfect for our client’s scenario. Bridge loans are known for their speed to the closing table. And, since bridge lending is solely collateral-based, the borrower’s DTI is not a factor at all.
We therefore found a bridge lender for our client, and we closed the transaction on time, much to everyone’s relief.
Now that our client owns the land, the next step is to find a construction loan to fund the spec build of a luxury single-family home.
In a time crunch? Need to qualify based on the collateral instead of your own DTI? A bridge loan may be the solution for you as well. Contact us today to discuss all your bridge lending needs.
