Real estate bridge loans provide temporary financing when an investor needs to act before a sale, refinance, renovation or permanent loan is completed.
Bridge financing may help qualified investors acquire a property, replace maturing debt, access property equity or carry a transaction through a transitional period.
Real estate transactions do not always align with traditional bank timelines. A buyer may need to close before another property sells. An existing loan may mature before permanent financing is ready. A property may require leasing, renovation or stabilization before qualifying for a long-term loan.
A bridge loan is designed to cover that temporary financing gap.
Bridge financing may be considered for:
A bridge request should include a clear explanation of the current situation and how the loan will be repaid. Review factors may include:
Bridge financing is temporary, so a credible and documented exit is especially important.
Depending on the transaction, repayment may come from:
A bridge loan is generally shorter term and designed for transitional or time-sensitive situations. Conventional mortgages are typically intended as long-term financing for stabilized properties.
Yes. Bridge financing may be used to acquire investment real estate when the transaction requires a faster or more flexible structure than a traditional bank can provide.
Bridge financing may be available to replace an existing mortgage or maturing loan, subject to property value, equity and the proposed exit strategy.
Requirements vary by program and transaction. Property income, business financial information, bank statements or other documentation may be requested.
Bridge financing may be considered for residential investment, multifamily, mixed-use and commercial properties.
An initial review may be completed quickly when the property and transaction details are complete. Final approval and closing depend on valuation, title, insurance and due diligence.