FAQs

A bridge loan is used as a short-term solution to finance real estate until permanent financing is secured.

Bridge loan payments are Interest Only (IO) and calculated with simple interest. By multiplying the loan amount and the interest rate, and dividing the result by 12 (months), you will get the monthly payment. There are no principal amortization payments during the term of the loan. Principal is repaid at maturity with a lump-sum or balloon payment.

Bridge loan interest rates range between mid 7s and high 9s (~7.5%-9.9%).

Yes. Vaster can provide loans to investors looking to pay off an existing mortgage that is reaching maturity or to reduce their current interest rates.

Yes. New construction condominiums are Vaster’s expertise. We lend on new construction condos and finance closing costs which helps many investors close without the need to bring cash to closing.

Vaster also lends on diverse types of condominium, single family homes, and townhome properties.

Yes. A cash-out bridge loan allows investors to take equity out of a free & clear property. The cash out proceeds can then be used to remodel, to pay off an existing debt, or to invest in a new business.

It depends. If the remodeling work does not require significant structural changes or additions, you could get a cash-out loan with Vaster and use the loan proceeds to add new floors for example. 

Yes. Vaster provides bridge loans on selective multifamily, office, retail, and mixed-use properties.

Yes. Vaster lends on selective residential and commercial land with as-of-right residential or commercial uses.

Yes. Some lenders offer construction bridge loans for building homes. Vaster currently does not provide ground up construction loans.

Institutional and private investment funds offer bridge loans.

Vaster provides bridge loans and can help you identifying and structuring your or your client’s financing needs. Click Here to get in contact with a Vaster Loan Originator.

At Vaster Capital of course! Click here to get started with your loan request.

Qualification for a bridge loan depends on 3 factors: collateral, borrowing entity, and financial strength of the sponsor.

To discuss your financing needs please visit our contact page to connect with one of our Vaster Loan Specialists. 

Yes. Although Vaster runs credit checks on all sponsors, the approval decision is not credit score driven. However, major credit events like a recent foreclosure, bankruptcy, and/or judgement could affect eligibility for approval.

Yes. Loans with good payment history and overall performance could be eligible for extension.

Yes. Bridge loans can be refinanced and paid off with proceeds from another loan.

Yes. Bridge lenders must comply with HMDA requirements.

Home Equity Lines of Credit are usually offered by traditional banks to primary homeowners with excellent credit and financial profile. It is a full documented and credit score driven loan.

Vaster provides Bridge Loans to corporate entities on investment properties. These loans require less documentation and are not credit score driven.

Hard Money or Hard Equity loans are based 100% on the quality of the property. Required documentation of the sponsor documentation is very light and almost inexistent. Since no financial information of the sponsor is provided, the interest rates and fees on these loans are substantially higher.

Bridge loans, on the other hand require more information about the sponsor’s financial strength. Bridge loans are designed for experienced and professional investors that need quick access to capital to execute real estate investment strategies. By providing information about the intended transaction and their financial strength, investors can access lower rates and fees.

A complete loan application is a signed copy of the application with supporting documentation attached. Click here to get started.