Mound City Lending

Bridge Loans

Lightning-fast financing for time-sensitive opportunities. Our bridge loans provide immediate capital to secure properties, close deals quickly, or bridge the gap between purchase and long-term financing. Perfect for competitive markets where speed is essential.

Loan Features

Close in 5-7 Days

Ultra-fast approval and funding process. Get pre-approved in 24 hours and close your loan in as little as 5-7 days to secure time-sensitive deals.

Up to 75% LTV

Finance up to 75% of the property value with minimal documentation. Ideal for cash-out refinances, auction purchases, or quick acquisitions.

Flexible Exit Strategies

Short-term financing with multiple exit options: refinance to permanent financing, sell the property, or extend the loan term as needed.

Loan Terms & Rates

Standard Terms
Loan Amount:$50,000 - $3,000,000
Loan-to-Value (LTV):Up to 75%
Interest Rate:11.5% - 15.5%
Term Length:6-12 months
Extension Options:Up to 6 months
Closing Timeline:5-7 days
Fees & Costs
Origination Fee:2.5% - 4.0%
Processing Fee:$750
Appraisal Fee:$400 - $700
Title & Escrow:Varies by state
Extension Fee:1.5% of loan amount
Prepayment Penalty:None

When to Use a Bridge Loan

Bridge loans are ideal for time-sensitive situations where traditional financing is too slow:

Competitive bidding situations requiring all-cash offers
Auction purchases with tight closing deadlines
Property needs repairs before qualifying for traditional financing
Cash-out refinance to fund another investment opportunity
Temporary financing while awaiting long-term loan approval
Off-market deals requiring immediate capital

Qualification Requirements

Borrower Requirements
  • Must operate through a business entity (LLC, Corporation, Partnership)
  • Minimum credit score of 640 (streamlined process for higher scores)
  • Proof of funds for down payment (25-30% of purchase price)
  • Pass borrower competency assessment (75% minimum score)
  • Clear exit strategy (refinance, sale, or permanent financing)
Property Requirements
  • Residential properties: single-family, townhomes, condos, multifamily (1-4 units)
  • Non-owner occupied investment properties only
  • Property can be in any condition (including major repairs needed)
  • Clear title or ability to clear title at closing
  • Located in acceptable markets (most major metro areas)
Documentation Requirements

Bridge loans feature streamlined documentation for faster closings:

  • Purchase contract or property details (for refinances)
  • Proof of funds for down payment and reserves
  • Business entity documentation (LLC operating agreement, EIN)
  • Personal and business credit authorization
  • Exit strategy documentation (pre-approval letter, listing agreement, etc.)

Example Scenarios

Scenario 1: Auction Purchase

Situation

Investor finds a foreclosure auction property worth $300,000 that needs $40,000 in repairs. Auction requires all-cash purchase within 30 days.

Bridge Loan Solution

Purchase Price:$240,000
Bridge Loan (70% LTV):$168,000
Borrower Cash:$72,000
Closing Time:7 days

Exit Strategy

After closing, investor completes repairs and refinances into a fix-and-flip loan to fund renovations, or sells property for profit.

Scenario 2: Cash-Out Refinance

Situation

Investor owns a rental property free and clear (value: $400,000) and needs quick capital for a new investment opportunity.

Bridge Loan Solution

Property Value:$400,000
Bridge Loan (75% LTV):$300,000
Cash to Investor:$300,000
Closing Time:5 days

Exit Strategy

Investor uses cash for new purchase, then refinances both properties into long-term rental loans within 6-12 months.

Bridge Loan Best Practices

  • Have a clear exit strategy before closing - don't rely on market appreciation alone
  • Budget for higher interest costs - bridge loans are more expensive than traditional financing
  • Maintain adequate reserves - unexpected delays can extend the loan term
  • Start planning your refinance or sale immediately after closing

Need Fast Financing? We Can Help.

Don't miss out on time-sensitive opportunities. Get pre-approved in 24 hours and close in as little as 5-7 days.