What Is a Bridge Loan?
A bridge loan is short-term real estate financing — typically 6 to 24 months — designed to “bridge” the gap between an immediate capital need and longer-term financing. It closes fast, requires minimal documentation compared to conventional loans, and is secured by real property.
Bridge loans are the right tool when timing matters more than rate: buying before your current home sells, closing a deal before a competitor, pulling equity out of a property quickly, or funding a renovation before refinancing into permanent financing.
When Bridge Loans Make Sense
Buying before selling. You’ve found the home you want but haven’t sold your current one. A bridge loan lets you buy now using your existing home’s equity as collateral, then pay it off when you sell.
Fix-and-flip and renovation projects. Purchase and renovate a property quickly with bridge financing, then exit via sale or a long-term DSCR or conventional refinance.
Time-sensitive acquisitions. Auction purchases, estate sales, and off-market deals frequently require closing in days or weeks — not the 30–45 days a conventional lender needs.
Foreclosure prevention. Access equity in a property to cure an existing default before permanent damage to the asset or credit.
Commercial and mixed-use. Stabilize a property — bring it to occupancy thresholds — before refinancing into agency or conventional commercial debt.
Bridge Loan Terms and Rates in 2026
Bridge loan pricing reflects short-term risk and fast execution. Expect:
| Factor | Typical Range |
|---|---|
| Loan term | 6–24 months |
| Interest rate | 9–13% depending on LTV, credit, and property |
| Origination points | 1–3 points |
| Residential LTV | Up to 80% |
| Commercial LTV | Up to 65% |
| Fix-and-flip LTV | Up to 70% of ARV (after-repair value) |
| Minimum loan amount | $100,000 |
| Maximum loan amount | $5,000,000+ |
Rates vary by lender, LTV, credit score, property type, and loan purpose. Lower LTV and stronger credit always produce better pricing.
How to Qualify for a Bridge Loan
Bridge loans are asset-based — the property secures the loan, which means qualification is significantly more flexible than conventional financing.
Credit score. Most programs require a minimum 620–640. Unlike conventional loans, one missed payment won’t necessarily disqualify you — underwriters look at the full picture.
Equity or down payment. For a purchase, plan on 20–35% down depending on property type and exit strategy. For a refinance, the loan-to-value ratio determines how much you can access.
Exit strategy. Every bridge loan approval requires a credible exit — sale of the property, permanent refinance, or payoff from another source. Underwriters will evaluate whether the exit is realistic within the loan term.
Property condition. Bridge loans can close on properties that conventional lenders won’t touch: vacant, partially renovated, deferred maintenance, or mid-construction. The collateral value at the time of the loan drives approval.
Income documentation. Because bridge loans are short-term and asset-secured, income documentation requirements are minimal. Many programs require no tax returns, no W-2s, and no employment verification.
Property Types We Finance
- Single-family residential (1–4 units)
- Multi-family (5+ units)
- Mixed-use
- Commercial office, retail, and industrial
- Fix-and-flip and value-add properties
- Vacant and non-warrantable properties
Bridge Loan vs. Hard Money Loan
The terms are often used interchangeably, but there is a distinction. Bridge loan refers to the purpose and duration — short-term financing to bridge to a defined exit. Hard money refers to the source of capital — private investors or funds rather than banks.
In practice: most bridge loans are funded by private (hard money) sources. The difference matters when talking to lenders — a bridge loan from a mortgage company operates under different licensing and compliance requirements than a direct hard money lender.
Closing Timeline
Bridge loans close significantly faster than conventional financing:
- Application to approval: 2–5 business days
- Appraisal: Rush appraisals available in 3–5 days
- Clear to close: 7–14 days from application in most cases
- Full process: 10–21 days depending on title and property complexity
Closings in under 10 days are possible for straightforward transactions with clear title.
How the Process Works
- Submit the deal. Property address, purchase price or current value, loan amount needed, exit strategy.
- Term sheet. We provide a preliminary term sheet within 24–48 hours.
- Appraisal and underwriting. Property inspection and title ordered simultaneously to compress timeline.
- Closing. Once title is clear and appraisal is in, closing happens fast.
Bridge loans are relationship-driven. We want to understand your deal and your plan — not run you through a scoring model.
Ready to Get Started?
Talk to a licensed loan officer about your options — no obligation.