Bridge Loans — Overview
A bridge loan is a short-term, asset-based loan designed to give real estate investors speed and flexibility. When a deal requires fast closing, when a property needs renovation before it qualifies for conventional financing, or when you need to buy before your current property sells — a bridge loan is the tool. We work with hard money and private lenders who underwrite on the asset, not your income, and can close in as little as 5–10 business days.
Key Benefits
Close in Days
Bridge lenders underwrite on the asset. Less documentation means faster approvals — often closing in 5–15 business days.
Asset-Based Underwriting
Your income and credit are secondary. The property value and your exit strategy drive the approval.
Renovation Financing
Some bridge programs include a construction holdback — funds released as renovation milestones are completed.
Bridge to DSCR
Buy and renovate with a bridge loan, then refinance into a long-term DSCR loan once the property is stabilized and rented.
No Prepayment Penalty
Most bridge loans have no prepayment penalty — pay off early when you sell or refinance without penalty.
LLC & Entity Closing
Bridge loans are designed for investors and routinely close in LLCs, LPs, and corporate entities.
How to Qualify
- ✓ Property must have sufficient equity or purchase price must support the loan amount
- ✓ Clear exit strategy required: sale of property or refinance into permanent financing
- ✓ Minimum credit score of 600 (some programs have no minimum)
- ✓ Experience as a real estate investor preferred but not always required
- ✓ Property appraisal or BPO (broker price opinion) required
- ✓ Interest-only payments during the bridge term
- ✓ Loan term typically 6–24 months with extension options
- ✓ LLC, LP, and corporate entity borrowers accepted
Frequently Asked Questions
What is a bridge loan used for?
Bridge loans are used when speed or flexibility is required. Common uses include: buying a property before your current one sells, acquiring a distressed property that doesn't qualify for conventional financing, funding renovations on a fix-and-flip or fix-and-hold, and bridging the gap between purchase and permanent DSCR financing.
How fast can a bridge loan close?
Significantly faster than conventional loans. Most bridge loans close in 5–15 business days. In urgent situations with a clean deal, some lenders can close in as few as 3–5 days.
What's the exit strategy for a bridge loan?
Every bridge loan requires a defined exit strategy — either selling the property or refinancing into permanent financing (typically a DSCR loan or conventional investment loan). Lenders want to see that you have a realistic plan to repay the bridge loan within the term.
Are bridge loan rates higher than conventional rates?
Yes — bridge loans carry higher rates (typically 9–13%) because they are short-term, asset-based, and carry more risk for the lender. However, the speed and flexibility they provide often more than justifies the cost for time-sensitive investment opportunities.
Can I get a bridge loan for a fix-and-flip?
Absolutely. Fix-and-flip bridge loans are one of the most common use cases. Some programs include a renovation holdback — the lender holds back a portion of the loan amount and releases it in draws as renovation work is completed and inspected.
Ready to Get Started?
Talk to Steve or Zach today — free consultation, no credit pull required.
Loan Highlights
- Loan Terms 6–24 months
- Max LTV Up to 75–80%
- Min Credit Score 600 (some no min)
- Closing Speed 5–15 business days
- Income Docs Minimal / Asset-Based
- Property Types SFR, Multi, Commercial
- Close in LLC Yes
- Interest-Only Typically Yes
- Exit Strategy Sale or Refinance
- States All 50
