UK
IRE
AU
CA
US
ZA
NA- Borrow up to 80% LTV
- Competitive rates
- Terms up to 24 months
- Approval in as little as 5 days
Buying property at auction may speed up the buying process, let you pay a lower price, or give you the opportunity to purchase an unusual property.
US property auctions move fast. Buyers must pay in full within a time frame that’s usually too short to get a traditional property loan. So, if you don’t have the cash to pay upfront, how can you buy at auction? The answer is auction finance – a fast and simple bridging loan that lets you buy with confidence at auction, then gives you time to re-sell for a profit or secure a long-term mortgage. Don’t miss out on bargains. Use an auction loan to be a winner when the hammer falls.
Auction finance is a type of bridging loan used to buy residential or commercial property at auction. Because auction houses usually require payment in full within 14 or 28 days of purchase (56 days if bought online), it can be difficult for some buyers to arrange a traditional property loan within this short time frame. Auction finance can cover this gap for 1 to 24 months, allowing the borrower to pay the auction house according to their rules, and sufficient time to re-sell the property or arrange a long-term mortgage to replace the auction loan.
All auction finance is essentially the same: A lender provides short-term funds to pay the auction house, then the buyer repays the lender by either re-selling the property or replacing the auction loan with a traditional residential or commercial mortgage.
However, depending on their available cash, the buyer may choose from two types of auction finance to pay the necessary deposit:
In all cases, auction finance is more expensive than traditional property loans.
Auction finance can be used to buy a variety of US properties:
The properties may be used by the buyer in different ways:
Yes, although standard bridging loans can take much longer to arrange. Because of the tight time constraints, auction finance uses the purchase price of the property as the valuation and does not require an independent audit. This makes it faster to secure the borrowing buyers need.
The key features of auction finance:
Auction finance is based on the value of the purchased property. This means there is greater consideration of the value of the property than the buyer’s income or credit status. Bad and poor credit scores can be accepted.
Even though auction finance is based on the value of the purchased property, the borrower must still meet the following demands:
Whether you’re buying US property for a place to live, to use for your own business, or you’re seeking to re-sell for a profit or rent out the property, buying at auction can be a great way to benefit from real estate. No matter if you’re a first-timer or a seasoned professional, Swoop has you covered. Contact us today to secure the auction finance that suits your buying needs.
Swoop was amazing! I was looking for refinancing and they were straight onto finding me the best possible option. I would highly recommend them.
Owner, F45 Cambridge
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
Swoop promise
At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.
Find out more about Swoop’s editorial principles by reading our editorial policy.
Disclaimer: Swoop Funding LLC (“Swoop”) is a financial technology platform and commercial finance broker, not a lender. Swoop does not provide loans or make credit decisions. We match US-based firms with third-party lenders, equity funds, and grant agencies. All financing is subject to lender credit approval and the specific terms and conditions of the funding provider.
Broker Compensation Disclosure: Swoop provides its platform and matching services to applicants at no direct cost. We receive compensation in the form of a commission or referral fee from the finance providers in our network upon successful placement. This compensation may vary by provider and product. In certain instances, the commission paid to Swoop may influence the interest rate or terms offered by the lender, which can affect the total amount payable under your agreement.
Credit Authorization & FCRA Notice: By submitting an application or registering an account, you provide “written instructions” to Swoop under the Fair Credit Reporting Act (FCRA) to obtain your personal and/or business credit profile from consumer reporting agencies. This information is used solely to evaluate your eligibility for financing and to match you with appropriate lenders in our network.
State-Specific Disclosures:
Florida & Utah: Swoop complies with state commercial financing disclosure laws regarding the transparency of terms for non-real estate secured commercial transactions.
Entity Information: Swoop Funding LLC is a Delaware limited liability company. US Headquarters: 43 W 23rd St, New York, NY 10010, United States. Contact: hello@swoopfunding.com
General Terms: Applicants must be 18 years of age or older. All firms must be registered and operating within the United States. SBA loans are issued by private lenders and guaranteed by the U.S. Small Business Administration; Swoop is not a government agency. Please review our Terms of Use and Privacy Policy for full details.
If you have a complaint, please refer to our Complaints Policy.
yet? Register here!