Mortgages are Available for Those in the Restaurant Industry
Operating or working in a restaurant is difficult enough without having to consider a typical mortgage. If you get a significant portion of your income from tips, you won’t be able to get a conventional loan until you have a two-year history of tip income documented on your tax returns. We created a bridge loan to enable you to purchase your ideal house before you have a full two years of tip income history. We refinance you into a conventional loan after you have two years of self-employed tip income.
We recently assisted a client who had only 16 months of tip income. The client could not obtain a conventional loan since they did not have a 2 year history of tip income. We gave them a bridge loan to buy a house, and then refinanced them into a conventional loan after their tax returns were completed 8 months later. This helped the client purchase a new home without having to wait until they had a full two years of tip income history.
Common Uses of Residential Bridge Loans
Buy Before You Sell
Purchase new home before old home sells even if you can’t qualify for both house payments using a conventional loan. We provide a bridge loan to enable you to purchase a new home and then refinance you into a long-term conventional loan when you old home sells.
New House Needs Repairs
Purchase a new home that needs repairs even if you can’t qualify for a conventional loan (due to the repair issue). We provide a bridge loan to enable you to purchase a new home and then refinance you into a long-term conventional loan after your repairs are complete.
Fixed Income Buyer
Purchase a new home even if you are retired and are on a fixed income and can’t qualify for a conventional loan. We provide a bridge loan which you can pay off once your old home sells.
1099 or Contactor Income
Purchase a new home even if you are a contractor with less than two (2) years of tax returns and can’t qualify for a conventional loan. We provide a bridge loan until you get two years of income history and we then refinance you into a long-term conventional loan.
Old Home Needs Repairs
Purchase a new home with a Bridge Loan to provide you time to repair and sell your old home (applies even if you can’t qualify for both payments with a conventional loan). We then refinance you into a long-term conventional loan once your old home sells.
Purchase a new home even if you are a restaurant owner or server with less than two (2) years of tax returns and can’t qualify for a conventional loan. We provide a bridge loan until you get two years of income history and we then refinance you into a long-term conventional loan.
Residential Bridge Loan Benefits
Purchase a new home even if don't qualify for a conventional loan.
Self-Employed Buyers can qualify even if you don't have a 2 year income history.
Purchase even if new house needs repairs and conventional loan is not available.
Give you time to repair old house.
Buy your new home before your old home sells.
Avoid moving twice.
Your old mortgage payment doesn't count against you.
Gain the edge over other buyers by using our funds to submit a cash offer.
How to Obtain a Bridge Loan?
Complete Your Application
Get approved for both a short-term loan and long-term home loan from us in a single step. Get started now!
Use Our Funds To Buy Your New Home
We provide you a short-term loan to pay cash for your new home.
Move On Your Schedule
If you are selling your old home, move when it makes sense for you – no interim housing, no storage, no stressful contingencies.
Refinance Your Short Term Loan
We will refinance you into a long term loan as soon as you qualify for a conventional loan.
Bridge Loan Pricing
Low Up Front Costs
- $495 fee to set up your Short-Term Loan and allocate Funds for your use.
- We provide you a Proof of Funds Letter that you have funds available to make a Cash Offer.
Pay Cash for New Home
- Draw against the Short-Term loan to close on your new home.
- We just charge a simple 1% origination for the amount you draw from the line of credit.
- The $495 up front fee will be credited toward these closing costs.
Best Short Term Rates
- If you are selling an existing home, Bridge loan Payments may be deferred for up to 3 months to give you time to sell your old home.
- Your Short-Term loan generally have a 6 to 10 month term.
I’ve worked with Jay Hurst on several loans. Jay is extremely knowledgeable and helpful, and was able to advise me on the options for my recent purchase. Great guy to have on your side, and great rates!
Hurst Lending was very easy to work with and stayed in constant contact with me throughout the loan process so I never had to wonder what the status of the loan was.
Bridge Loan Case Studies
Each client has different needs, desires, and situations, and high quality buyers sometimes do not qualify for a traditional conventional loan. We can help buyers use a short-term Bridge Loan to surmount common challenges they face by the maze of complicated conventional loan underwriting rules. If you have run into a hurdle obtaining a conventional loan, please contact us as we can often help you purchase a home or investment property using a Bridge Loan.
- Move Up Buyer
- Fixed Income/Retired
- Tip/Restaurant Income
- New House Needs Repairs
- Old House Needs Repairs
- Need to Close Quickly
- Buyer Fell Through
- Lacking Down Payment
- Provide Liquidity to Solve Cash Flow Issues
- No Seasoning Cash Out
If your present home is too small for your needs and have equity in your old home, a Bridge Loan can help you purchase your new, larger home without selling your current home – and without moving twice.
We recently helped a borrower who could not qualify for a conventional loan since their old home had not yet sold and they did not qualify carrying both house payments. We provided them a Bridge Loan to purchase a $700k home. Our program gave them “credit” for the equity they had in their existing house and allowed them to close quickly on their new home. Once their old home sold, we refinanced them into a long-term 30-year fixed conventional loan.
The Bridge Loan allowed the borrower to win a competitive bid without the need for a contingency contract, execute the purchase their new home and move once rather than twice. In the end, the borrower had a 30-year fixed conventional loan at a competitive rate, while saving a little money along the way.
Please visit our Buy Before You Sell page for more details on this offer.
A bridge loan can assist retirees on a fixed income move closer to family and purchase a new home, even if they don’t qualify for a conventional loan.
We recently helped a client who was on a fixed income purchase a $400k condo near their relatives using a bridge loan. We did not solely focus on the clients income and instead looked at the amount of equity they had in their old home which was worth over $800k. The clients goal was to purchase their new condo, sell their old house, and then pay off our bridge loan. We provided the client a bridge loan that allowed them to pay cash and even close quickly for the condo. They then sold their home and paid off our bridge loan 3 months later. The client was able to pay off our bridge loan (without any pre-payment penalty) as soon as their house sold and were able to qualify for our bridge loan even though they were on a fixed income.
Entrepreneurship is hard enough without thinking about a typical mortgage. If you’ve been self-employed for less than two years or transitioned from a w-2 employee to a 1099 contractor recently, you may not qualify for a conventional mortgage.. Hurst Lending created a bridge loan to enable you to purchase your ideal house before you have a full two year income history. Once you have two years of self employed income, we then refinance you into a conventional loan.
We recently helped a client that moved from a w-2 job to a contractor role 18 months ago. The client could not obtain a conventional loan since they did not have a 2 year self-employed income history. We provided them a bridge loan to purchase a home and once thier tax returns were completed 6 months later, we refinanced them into a conventional loan. This helped the client purchase a new home without having to wait until they had a full two years of self-employed income history.
Operating or working at a restaurant is hard enough without thinking about a typical mortgage. If you’ve receive a substantial portion of your income via tips you cannot get a conventional loan until you have a two year history of tip income as documented on your tax returns. We created a bridge loan to enable you to purchase your ideal house before you have a full two years of tip income history. Once you have two years of self-employed tip income, we then refinance you into a conventional loan.
We recently helped a client that only had 16 months of tip income. The client could not obtain a conventional loan since they did not have a 2 year history of tip income. We provided them a bridge loan to purchase a home and once thier tax returns were completed 8 months later, we refinanced them into a conventional loan. This helped the client purchase a new home without having to wait until they had a full two years of tip income history.
If you are trying to purchase a new home that needs repairs we can help by providing a bridge loan even if you can’t qualify for a conventional loan (due to the repair issue). We provide a bridge loan to enable you to purchase a new home and then refinance you into a long-term conventional loan after your repairs are complete.
We recently helped a client purchase a new home that needed repairs. The new house was partially remodeled and some of the rooms did not have carpet and a bathroom was not complete. The client could not get a conventional loan since the house was not in a habitable condition and the seller was not in a position to complete the repairs. We stepped in and provide the customer a brige loan that allowed them to purchase the property and we then refinanced them into a long term conventional loan after they completed the repairs.
If your present home is too small and needs repairs, a Bridge Loan can help you buy a new larger home and give you time to remodel your old home before selling it.
We recently helped a client who wanted to purchase a new house but had a old home that needed repairs. We provided them a bridge loan to purchase a $650k new home. Our program provided them the time they need to remodel their old home after they moved out. Once they fixed-up their old home and sold it, we refinance their bridge loan into a long-term conventional loan. This allowed the to purchase their new home and maximize the sale price of their old home.
Please visit our Buy Before You Sell page for more details on this offer.
We provide clients a short-term line of credit/loan to enable you to pay cash for your new home. We provide a proof of funds letter showing that we have funds allocated for you use to purchase your new home. This is very similar to a commercial line of credit issued by banks. These funds are FULLY available for you to use to purchase a property. The funds are simply waiting for an executed contract, along with an appraisal and clear title to be released to the purchaser.
When you draw against your short term loan, we charge a simple 1% origination fee, and the approximate cost to refinance you into a long term loan is.25% to .5% in extra fees — in many cases associated with using Hurst Lending to refinance out of the short term loan. This is a small cost to pay to help you make your offer more attractive and win your dream home.
More details can be found at https://hurstlending.com/dominate-loans/dominate-with-a-cash-offer.
We have a lending program to help you buy your new house if the buyer for your old home falls through. With this program, you can close on a new house, put your old home back on the market, and qualify for both homes by using a bridge loan.
We recently had a client who recieved a contract for their old home and they they put a contract on a new property. Their buyer BOM’ed out over a financing issue and our client could not qualify to purchase the new home (since they did not have enough income to qualify for a conventional loan). We helped the client save their deal by providing them a bridge loan to purchase their new home. Once their old home sold, we refinance their bridge loan into a long-term conventional loan.
The lack of a down payment can stop people from purchasing a home or investment property. Buyers generally need 5% downpayment to purchase a primary residence or 20% to purchase an investment property. We can occasionally offer a bridge loan to allow our clients to purchase a primary residence or investment property with a lower down payment.
We recently helped a client purchase an investment property from a relative. The relative just wanted to sell the house for $150k since that is what they owed but the house was worth $250k. Our client only had a 5% downpayment. We provided them a bridge loan to acquire the property for $150k minus their 5% downpayment. After they closed on the property, we refinanced them after 6 months into a conventional loan. Since the client loan was fully seasoned (after 6 months) they were able to refinance based on the full appraised value and even tool out some cash. This was a great way to use a bridge loan to acquire an investment property for just 5% down.
Some of our customers rely on us to provide them liquidity to help them acquire property using a Bridge Loan. These customers often have substantial assets but accessing their equity could take time. They might need time to sell another real estate assett or selling stocks might be at a great time or they might incure unfavorable tax consequences. We quickly provide these customers funding to acquire a new property and they can then take the next few months to sell their assetts and then pay off our Bridge loan.
We recently provided a Bridge Loan to a client who found a great investment property. The house came on the market and they had to move quickly. We provided the Bridge Loan and they closed on the property in appoximatly 16 days. During this period the client put another rental property that was fully paid off on the market and set the closing date for early Januray. This allowed the client to acquire the new property, have time to sell the old property, and they moved their tax liability for the sale until the next year. We also have clients who use our Bridge Loans to avoid selling stocks that have dipped in value and they want to wait to sell until the stock market improves. In both of these cases, our Bridge Loan provids them the liquidity to enable them to close quickly and take a number of months to liquate assets at a better time (at which point they paid off our Bridge Loan).
We offer a simple Bridge Loan solution that allows you to get cash out of your renovated investment properties at their improved value, right away. This loan offer is a great solution for investors who purchase an investment property and want to acess their equity (based on the after repair value of the property). Investors need to wait 6 month to access their equity (using the stepped up value) with a conventional loan or up to 1 year with many investor cash flow loan products.
We recently helped an investor, who purchased a property with a $150k hard money loan and spent $50k on repairs. After the repairs the house was worth $300k. With a conventional loan they could refinance the property right away but they could only get a loan for $200k to pay off their hard money loan and pay back their repair costs (at least until they owned the home for 6 months or a year). We provided the investor a bridge loan for $240k as soon as their repairs were finished. The client ended up paying off their hard money loan, reimbursing themself for their repair costs, and putting $40k extra in their pocket to purchase their next property. We then refinanced the investor into a long-term conventional investment property loan when they owned the property for 6 months.
If you are interested in learning more about our no-seasoning Bridge Loan, more details can be found at https://hurstlending.com/investor-loans/no-seasoning-investor-cash-our-refi-loan.
Your cash offer will gain attention and rise to the top of the other offers.
Close on time – your funds are guaranteed by Hurst Lending.
Your cash offer removes financial contingencies and is less risk for the seller.
Move into your new home on your new schedule.
Frequently Asked Questions
How do I get started?
It’s quick and easy. Get approved for both a short-term loan and long-term home loan from us in a single step.
What if I can't qualify for the old house payment and mortgage on the new house?
We’re financing your short-term credit/loan with our own funds. We employ common sense underwriting criteria that considers your former home’s equity and liberal debt-to-income ratios to help you qualify for a new home before your old one sells.
Why is the interest rate higher on a bridge loan?
Bridge loans are 12-month short-term loans. The loans are given on the idea that buyers can sell their existing homes fast and need less than the loan term to pay it off. Since this isn’t guaranteed, bridge loans are riskier for lenders and have higher rates.
Can I use a HELOC instead of a Bridge Loan?
HELOCs are sometimes used as Bridge Loan alternatives. HELOC loans employ home equity as security for a significant cash withdrawal. The money can be used for anything, even buying a second home, once withdrawn.
Few lenders will give a HELOC to a borrower whose home is for sale or who is planning to sell their home. Our bridge loans are more flexible and we don’t care if you are selling your old home. One of our mortgage specialists can help you decide whether a bridge loan or HELOC is ideal for you.
How long does it take to close this kind of transaction?
As quickly as we can get an appraisal and clear title. Everything else has been completed and the money is waiting. The line of credit is secured by the new property being purchased.
When can I move into my new home?
You can move into your new home as soon as you close on the purchase of your new home using our bridge loan.
When can I refinance out of the short term loan?
You can refinace or pay off your bridge loan at any time (without any pre-payment penalities).
What is the cost of our Bridge Loan?
We charge a simple 1% Origination fee when you draw against your short term loan and the approximate cost to refinance you into a long term loan (after you old house sells) is .25% to .5% in extra fees* related to using Hurst Lending to refinance out of the short term loan.
Am I required to use Hurst Lending to refinance out of the short term loan?
We would love to help you refinance out of our short-term line of credit/loan but this is not required. If you use us for your refinance, we will apply a lender credit to your refinance to help keep you closing costs as low as possible.
About Hurst Lending
We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process. Have you ever experienced the frustration of trying to buy before you sell; Losing your dream home in a bidding war; Trying to get a No-Seasoning Cash-out loan; Being unable to obtain a mortgage because your new or old house needs modest repairs; or simply because you prefer using our funds to close quickly without having to liquidate other investments? Our Industry-leading suite of short-term loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.