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Bridge Loan Financing

Short-term financing for the purchase, refinance, or cash-out of qualifying non-owner-occupied investment properties.

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Bridge Loan Financing

Flexible, short-term financing consideration for real estate investors navigating time-sensitive acquisitions, property transitions, lease-up, stabilization or a delayed permanent-financing exit.

Loan Purpose Property Transition
Term Profile Short-Term Financing
Transaction Purchase or Refinance
Core Requirement Defined Exit Strategy
Bridge Loan Overview

Capital for the Space Between Acquisition and Permanent Financing

A bridge loan is generally used when a property or transaction is not yet positioned for conventional or permanent financing. It provides a temporary capital structure while the investor executes a defined plan.

The plan may involve repairs, tenant improvements, lease-up, improved occupancy, operating stabilization, resolving a maturity or preparing the property for sale or longer-term financing.

Bridge financing is designed to solve a temporary capital need—not to replace a long-term business plan. A realistic, supportable repayment strategy is central to the review.
1

Time-Sensitive Acquisition

Pursue an eligible property when the transaction requires a more flexible or accelerated financing structure.

2

Property Stabilization

Complete improvements, leasing or operational changes before seeking permanent financing.

3

Maturing or Existing Debt

Replace eligible near-term debt while executing a clearly documented refinance or disposition strategy.

4

Delayed Permanent Financing

Create time to satisfy occupancy, seasoning, documentation or property requirements for the intended permanent loan.

Common Financing Needs

When Bridge Financing May Fit the Transaction

The appropriate structure depends on the property, required capital, execution plan, borrower strength and expected repayment source.

01

Acquisition Bridge

Short-term financing for an eligible investment-property acquisition requiring speed or flexibility before longer-term financing is available.

02

Renovation and Repositioning

Finance an acquisition or refinance while completing eligible improvements intended to strengthen value, occupancy or property performance.

03

Lease-Up and Stabilization

Provide time to improve occupancy, establish operating history and position a property for permanent financing.

04

Maturing Loan Refinance

Replace eligible debt approaching maturity while the borrower completes a documented refinance, stabilization or sale strategy.

05

Property Transition

Address temporary property, tenancy or operational circumstances that prevent immediate placement into permanent financing.

06

Eligible Cash-Out

Selected transactions may permit equity proceeds when supported by value, leverage, ownership history and a credible use of funds.

The Critical Question

How Will the Bridge Loan Be Repaid?

Because bridge financing is temporary, underwriting must establish a reasonable path to repayment within the proposed loan term.

The exit should be supported by the property’s condition, business plan, expected value, projected income, marketability and the borrower’s ability to complete the strategy.

Common Bridge Exit Strategies
1

Refinance Into Permanent Debt

Complete the planned improvements or stabilization and qualify for DSCR, multifamily or other longer-term financing.

2

Sale of the Property

Complete the investment plan and repay the bridge loan through an arm’s-length property disposition.

3

Documented Capital Event

Selected transactions may rely on another verifiable repayment event acceptable under the originating lender’s guidelines.

Bridge Underwriting

What We Review Before Identifying a Structure

Bridge financing considers both the property’s current position and the borrower’s ability to execute the proposed business plan.

Review Area One

Current Property Value

The property’s current condition, purchase price, supported value and requested leverage.

Review Area Two

Business Plan

Planned renovations, lease-up, stabilization, repositioning or other actions expected during the bridge term.

Review Area Three

Exit Strategy

The proposed refinance, sale or other repayment event and the evidence supporting its feasibility.

Review Area Four

Borrower Experience

Relevant investment, ownership, renovation, development or property management experience.

Review Area Five

Liquidity and Equity

Borrower contribution, funds required to close, project capital and post-closing liquidity.

Review Area Six

Timeline and Market

Required closing date, project duration, property demand, local market conditions and expected loan term.

Property Profiles

Properties We Can Review for Bridge Financing

Eligibility varies by property type, condition, location, occupancy, transaction size and originating lender.

1–4

Residential Investment

Eligible single-family and two-to-four-unit non-owner-occupied properties.

MF

Multifamily

Apartment and multifamily properties requiring acquisition or transitional capital.

MX

Mixed-Use

Selected properties combining eligible residential and commercial uses.

CRE

Commercial Real Estate

Selected commercial property types subject to asset- and market-specific review.

Prepare the Submission

Information That Helps Us Review the Scenario

A complete initial submission helps us assess timing, identify potential structures and address transaction risks early.

Property and Financing

  • Property address and asset type
  • Purchase price or estimated current value
  • Requested loan amount and transaction type
  • Current property condition and occupancy
  • Existing debt and maturity date, if applicable
  • Required closing date
  • Renovation or improvement budget
  • Expected stabilized value or sale price

Borrower and Business Plan

  • Borrowing entity and ownership structure
  • Estimated borrower credit profile
  • Relevant real estate experience
  • Available funds and borrower contribution
  • Post-closing liquidity
  • Project scope and execution timeline
  • Lease-up or stabilization plan
  • Detailed refinance or sale exit strategy
How It Works

From Bridge Scenario to Closing

Begin with the property, timing, financing need and exit. Additional documentation is collected as the request advances.

1

Submit the Scenario

Provide the property, requested financing, closing timeline, business plan, borrower profile and intended exit strategy.

2

Review Potential Structures

We compare the transaction with available bridge programs and identify likely leverage, documentation and execution requirements.

3

Complete Due Diligence

The originating lender completes valuation, underwriting, title, documentation and final approval.

Common Questions

Bridge Loan FAQs

Important considerations before submitting a short-term real estate financing request.

What is a commercial real estate bridge loan?

A bridge loan is short-term financing used to address a temporary real estate capital need until the property can be refinanced, sold or repaid through another documented exit.

When might a bridge loan be appropriate?

Bridge financing may be considered for time-sensitive acquisitions, renovations, lease-up, property stabilization, maturing debt or situations in which permanent financing is not yet available.

How important is the exit strategy?

The exit strategy is fundamental. The originating lender must determine that the proposed refinance, sale or other repayment source is reasonable and sufficiently supported.

Can bridge financing be used for a property purchase?

Yes. Eligible investors may use bridge financing to acquire a property when timing, condition, occupancy or another transitional factor makes permanent financing impractical at closing.

Can an existing loan be refinanced with a bridge loan?

Selected refinance transactions may qualify, including eligible debt approaching maturity. The borrower must present a credible plan for repaying the new bridge loan.

Can renovation or improvement costs be included?

Selected programs may provide capital for eligible improvements. The project scope, budget, borrower contribution, draw structure and experience are reviewed under the applicable guidelines.

Is bridge financing only for distressed properties?

No. Bridge financing can also support performing or fundamentally sound properties that face a temporary timing, occupancy, renovation, documentation or financing constraint.

How quickly can a bridge loan close?

Timing depends on the completeness of the submission, appraisal or valuation, title, property complexity, borrower responsiveness and underwriting. No closing timeframe should be assumed until the transaction is reviewed.

Can bridge financing provide cash-out proceeds?

Selected programs may consider eligible cash-out transactions. Availability depends on supported value, leverage, ownership history, use of proceeds, property performance and borrower qualifications.

Does submitting a scenario create a commitment to lend?

No. A submission is a request for preliminary review only. Financing remains subject to available programs, property and borrower eligibility, due diligence, underwriting and final approval by the originating lender.

Start the Review

Have a Time-Sensitive Real Estate Scenario?

Submit the property, requested financing, required closing date, business plan and expected exit strategy for a preliminary bridge-loan review.