02/21/2026
How the Our Bridge Loan Works at MAG
This is a short-term investment property loan designed for non-owner occupied homes (rentals, flips, etc.). It’s typically used to pull equity out, refinance, or bridge until sale or long-term financing.
Here’s what that means for you:
• The loan term is 12 months
• Payments are interest-only
• The full balance is due at the end (balloon payment)
• No prepayment penalty — you can pay it off early
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How Much Can Be Pulled Out?
We structure the loan based on one of two things:
1. Loan-to-Cost (LTC) – based on what you paid
2. Loan-to-Value (LTV) – based on current appraised value
Maximum leverage is generally:
• Up to 70% of the property’s value
• Or up to 80–90% of cost (depending on experience & credit)
Important:
If the property was purchased within the last 6 months, we usually base the loan on your purchase price (cost basis), not a new value.
If you’ve owned it more than 6 months, we may use the appraised value instead.
Minimum loan: $50,000
Maximum loan: $3,000,000
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Property Requirements
Eligible properties:
• Single-family homes
• 2–4 unit properties
• Condos / townhomes
• Investment only (not primary residence)
Not eligible:
• 5+ unit properties
• Commercial
• Mixed-use
• Vacation rentals
• Mobile homes
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Borrower Requirements
• Must borrow in an LLC or Corporation
• Minimum 660 credit score
• At least 51% ownership must personally guarantee
• Minimum net worth equal to 10% of the loan amount
• Clean title (tax liens over $50K must be paid)
If credit is between 660–680, we may require an interest reserve.
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Exit Strategy
You need a clear plan to:
• Sell the property
• Or refinance into a long-term loan
If the property is rental-focused and not newly renovated, we may require it to meet a minimum DSCR (1.1 ratio).
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What Determines Final Loan Amount?
• Appraisal
• Your experience level (investor tier)
• Credit score
• How long you’ve owned the property
• Market location
• Property condition
