When timing matters, move with a plan.
Bridge loans are short-term, business-purpose loans for when timing matters. Compared with conventional financing, they often close faster, with fewer requirements and fewer potential delays, arranged through approved lending partners and subject to underwriting and approval.
Why investors use bridge financing.
When a deal is moving, waiting on conventional financing can cost you the property. Bridge loans are built around the property and the plan, so they often close faster, with fewer requirements and fewer potential delays.
- Often faster closings than conventional financing
- Typically fewer requirements and documents
- Fewer steps that can cause delays
- Underwriting focused on the property and your exit plan
Three ways investors use bridge loans.
Each one buys you time to carry out the plan. Every request is subject to underwriting and lending-partner approval.
1 · Acquire quickly, then rehab or build
When the right property comes up, a bridge loan can help you close on it quickly, before the renovation or construction starts. Once the plan is in place, you can move into rehab or construction financing, or sell or refinance.
2 · Acquire land before permits and approvals
A bridge loan may let you secure land before permits and approvals to begin building are in place. You hold the land while the approvals process plays out, then move into construction financing or sell.
3 · Reset the clock on a maturing loan
If a loan is coming due before the property is ready to sell, a new bridge loan with more time may pay it off, so you can sell at the property’s highest market value instead of having to sell fast.
What the program can look like.
Illustrative structure only. Each lending partner sets its own leverage, pricing, terms and requirements.
Rates, leverage, terms, draw structures, interest-reserve and non-Dutch interest features, and closing timelines are not guaranteed. They vary by lending partner and program and are subject to underwriting, appraisal, title review and approval. Business-purpose investment property only.
Documents lenders commonly ask for.
The exact list depends on the lending partner. Please don’t email SSNs, bank statements or ID documents. We’ll share a secure upload link when it’s time.
- Purchase contract, or the current loan’s payoff statement and maturity date
- Property or land details, photos and any rent roll
- For land: site plan, permit status and expected approvals timeline
- Business plan and timeline to exit
- Entity documents
- Proof of funds and reserves
Common questions.
How fast can a bridge loan close?
Bridge loans often close faster than conventional financing, because there are typically fewer requirements and fewer steps that can cause delays. Actual timing depends on the lending partner, title, appraisal and how quickly documents come in.
Can I buy land before permits are in place?
It may be possible. Some lending partners will consider land before permits and approvals are finished, based on the site, the plan and underwriting. Land terms often differ from terms on improved property, and we review them with you during your inquiry.
Can a bridge loan pay off a loan that’s about to mature?
Often, yes. A new bridge loan can pay off a soon-maturing loan and give you more time, so you are not forced into a quick sale. Approval depends on the property, its value and your exit plan.
How short is short-term?
It depends on the lending partner and the plan. Bridge terms are short by design and are reviewed with you during your inquiry.
