Bridge loans for real estate investors
The work is done, the house hasn’t sold, and the rehab loan is about to mature. A bridge loan pays it off and gives you up to 12 more months to sell or lease.
- 70%
- of the property value
- 12 mo
- interest only
- $0
- prepayment penalty
Bridge · finished and listedBridge loan terms
Term sheetGuidelines as of November 2026
- Limit against as-is value
- Up to 70%
- Limit against your cost
- Up to 90%, for property bought within the last 6 months
- Loan size
- $50,000 to $3,000,000
- Term
- 12 months, interest only. A 6-month extension is available for a fee
- Cash-flow test
- None on renovated homes. 1.10 DSCR otherwise
- Prepayment penalty
- None
- Credit score
- From 660. 680 for newer investors
Program maximums for finished 1–4 unit investment property. Not a commitment to lend.
When a bridge loan is the right tool
A bridge loan sits between the project and its exit. The property is finished, it is on the market or being leased, and it is not yet ready for a 30-year loan. The bridge repays a maturing rehab or construction loan, or buys a finished property quickly, and is paid off when the property sells or is refinanced.
Bought within the last six months? The loan is sized on your total cost: up to 80% for newer investors and up to 90% for experienced investors on renovated homes. After six months the appraised value is used.
Two kinds of bridge loan
The condition of the property decides whether a cash-flow test applies.
| Renovated | Not fully updated | |
|---|---|---|
| Typical case | A finished flip or new build listed for sale or for rent | A move-in-ready property with no deferred maintenance, being leased ahead of a long-term loan |
| Cash-flow test | None | 1.10 DSCR at exit |
| Experience | Not required with 680+ credit | One completed project in 3 years |
| Maximum leverage | 80% of cost, or 90% with three finished projects, inside 70% of value | 75% of cost, or 85% with three finished projects, inside 70% of value |
What to have ready
- An LLC or corporation as the borrower, with its owners as guarantors
- The listing agreement or the leases
- Your closing statement from the purchase and the renovation receipts
- A payoff statement for the current loan
- Company documents: articles, EIN letter, operating agreement, certificate of good standing
Bridge loan questions
Can a bridge loan pay off my hard money loan?
Yes, once the project is finished.
How is the loan sized when the house is listed for sale?
On the lower of the list price and the appraisal, or on your cost if you bought within the last six months.
Do I need experience?
Not for renovated homes with 680+ credit.
What credit score do I need?
660, or 680 for newer investors.
How is a bridge loan different from a fix and flip loan?
A fix and flip loan buys the house and pays for the work. A bridge loan is short-term money on a property that is already finished.
What comes after the bridge?
Sell the property, or refinance into a 30-year DSCR loan once it is rented. There is no prepayment penalty either way.
Are the terms the same in every state?
No. Florida and the Austin, Houston and San Antonio areas ask for three finished projects and cap the loan at 65% of value.
Does the loan have to be in an LLC?
Yes, an LLC or a corporation borrows. If you don’t have one yet, you can set it up before closing.
Which states do you lend in?
In 47 states and Washington, DC: everywhere except North Dakota, South Dakota and Vermont. California, Florida and Texas are our main markets. Some programs have their own rules in certain states and counties, and we confirm them when we look at the deal.
Have a deal in hand?
Leave your contact details and a line about the deal. We get back to you with which loan fits, how much it covers and written terms, before you pay for an appraisal.
- No hard credit pull to see terms
- No tax returns or W-2s
- Business-purpose loans on investment property