What is a Bridge Loan?
A bridge loan is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. They're commonly used by real estate investors who need quick capital to act on time-sensitive opportunities.
Bridge loans offer fast approvals and closings, allowing you to move quickly in competitive markets without waiting for traditional financing.
Key Benefits
- Close in as little as 10 days
- Interest-only payments during the loan term
- Up to 75% LTV on most properties
- Residential and commercial properties
- Terms from 6 to 24 months
- Use equity from current property to buy a new one
Who This Loan Is For
Investors who need fast capital to close before selling an existing property or securing permanent financing. Bridge loans are ideal for acquisitions, value-add deals, and gap financing where speed matters more than long-term rate.
Typical Requirements
- • 70–75% LTV on most properties
- • Interest-only payments during the term
- • Terms from 6 to 24 months
- • Clear exit strategy (sale or refinance)
- • Closings often in 1–2 weeks (subject to underwriting)
Key Terms to Know
- Bridge Loan
- Short-term financing that bridges the gap between buying a new property and selling an existing one or securing long-term financing.
- Loan-to-Value (LTV)
- The loan amount divided by the property value. Bridge lenders typically cap LTV at 70–75%.
- Interest-Only
- A payment structure where the borrower pays only interest during the loan term, preserving cash flow for the project.
- Carry Cost
- The ongoing cost of holding a property (interest, taxes, insurance) before it is sold or refinanced.
- Takeout Financing
- The permanent loan or sale proceeds that repay the bridge loan at the end of the term.
See our FAQ and loan resources for more definitions and checklists.
Related Loan Programs & Resources
Need Capital Fast?
Our bridge loan specialists can get you funded in as little as 10 days.