On behalf of a doctor and his wife, we helped them purchase a $1.8 million property on the west coast of Florida, their dream home.
Their biggest obstacle was their credit history. The doctor had some derogatory accounts, including a charge-off on a Small Business Administration (SBA) loan. The amount owed on the SBA loan was more than $500,000.
This was the kiss of death for them at many lending institutions, but we were able to get them approved by a lender under a hard money bridge program. (Click here to learn more about how to overcome negative credit events.)
Our clients received 75% loan-to-value for a loan amount of $1,350,000. Their bridge loan is short-term (1 year), and since there is no prepayment penalty, they can refinance into a more conventional loan as soon as possible.
Because the bridge program provided for a fast close, our clients met their closing deadline under the purchase agreement, and they are now the proud owners of their dream beachfront home.
The seller and the seller’s realtor were also very thankful that the loan closed, since the two prior contracts had fallen through.