Loan Programs
Bridge financing exists to buy time between a purchase and a permanent loan. Used well, it lets you compete with cash offers and stabilize an asset on your schedule. Used carelessly, it puts a maturity date on a refinance you have not yet earned.
Bridge program terms
- Up to 80–85% of purchase price on stabilized property; 85–90% LTC with rehab
- 6 to 24 month interest-only terms, with extension options
- Close in 5–10 days on a clean file
- Exit into a permanent DSCR loan, or a sale
- DSCR takeout pre-underwritten alongside the bridge
When bridge is the right instrument
- Competing against cash. A seller taking a lower price for speed and certainty is a real edge, and a five-to-ten day close buys it.
- The property is not yet financeable. Vacant, mid-renovation, or rated C5 on condition — none of these clear a permanent DSCR loan. Bridge carries the asset to the point where one does.
- Cash-out refinance seasoning has not run. You bought all cash six weeks ago and need liquidity now.
- An auction or portfolio purchase on a timeline conventional financing cannot meet.
The BRRRR cycle, and where each loan sits
- BuyBridge or rehab loan funds the acquisition at 85–90% of cost. Your capital covers the gap plus closing.
- RehabRenovation funded through reimbursement draws against completed work. Interest accrues on the drawn balance only.
- RentLease the property. A signed lease at or above market rent is the single strongest document in the refinance file.
- RefinanceDSCR loan at the new appraised value, typically 75% LTV, paying off the bridge and returning your capital.
- RepeatRecycled capital funds the next acquisition. The cycle only compounds if step four returns most of what step one consumed.
Everything hinges on step four, which is why we underwrite it in step one. Model the full cycle on the BRRRR calculator.
The seasoning problem, stated plainly
You want to refinance at the new higher value as soon as the work is done. Most lenders want six months of ownership from deed recording before they will lend against that new value rather than your purchase price.
On a four-month renovation, that means two additional months of bridge interest with no work happening. On a $250,000 bridge at 10.5%, roughly $4,400 of pure waiting.
| Approach | Cost | Trade-off |
|---|---|---|
| Wait out the six months | 2–3 extra months of carry | Cheapest rate, but capital sits idle |
| Day-one cash-out lender | +25 to +50 bps | 70% LTV cap; smaller lender pool |
| Delayed financing exception | Standard pricing | Only for all-cash purchases; capped at original price plus documented costs |
| Bridge with a 12-month term | Slightly higher rate | Removes the maturity pressure entirely — usually the right call |
What the takeout needs to clear
The bridge is only as safe as the permanent loan behind it. Before we fund the short-term note, we confirm that the stabilized property will support it:
- Projected post-rehab rent against projected PITIA at the refinance amount — the DSCR must clear the tier you are counting on
- The ARV supported by comparable sales an appraiser would actually use, not the three best sales in the neighbourhood
- Post-renovation tax reassessment reflected in the PITIA, not the seller's old bill
- Reserves available at refinance, which for a cash-out is commonly six months of PITIA
- Bridge term long enough to cover the rehab, lease-up, seasoning, and the refinance itself
If the takeout does not clear on those assumptions, the honest answer is that the bridge should not fund either. We would rather say so at term sheet than at maturity.
Structure the bridge and the takeout together
Send the deal and the plan. We will size both loans at once so the exit is underwritten before the entry funds.
Get a term sheet Model the cycleBusiness-purpose loans on non-owner-occupied investment property. Bridge financing carries maturity risk; a permanent takeout is not guaranteed by the existence of a bridge loan. Not a loan commitment.