Bridge Loan is a short-term hard money loan that bridges between two financing events. Two flavors common in the desk's network:
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Stabilization bridge — acquire under-rented or distressed multifamily, hold 12–24 months while stabilizing rents and operations, refinance to permanent (DSCR or agency).
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Flip-extension bridge — extend an expiring fix-and-flip loan when the property hasn't sold by maturity. Buys 3–6 months at a higher rate while the listing matures.
Rate: 9–13%. Term: 6–24 months. LTV: 65–75%. Prepayment penalty: usually waived for stabilization payoff; sometimes 1% for early payoff on flip-extension.