Bridge loans are short-term financing (6-24 months) used for acquisition, value-add, or transitional projects. Cost has three components:
Hold time is the biggest swing factor. A 6-month hold cuts your interest cost in half vs. a 12-month hold. Plan exit strategy carefully before committing.
Bridge loans are expensive relative to long-term mortgages. They make sense when:
Bridge loans and hard money loans serve similar purposes but at different price points:
| Loan Type | Typical Rate | Typical Points | Best For |
|---|---|---|---|
| Institutional Bridge | 9-12% | 2-3 | Larger deals ($500K+), strong borrowers |
| Hard Money | 11-15% | 3-5 | Smaller deals, faster close, lower borrower bar |
| Private Money | 10-13% | 1-3 | Negotiated terms, established lender relationships |
For investment property bridge financing, our marketplace places deals across institutional bridge sources for the best combination of speed and price.
Bridge loans typically close in 5-10 business days from a complete application. Some lenders close in 3-5 days for clean files with cash reserves. Compare to conventional financing at 21-45 days.
Most bridge programs require 660+ credit. Some specialty programs accept 620-640 with compensating factors (larger down, lower LTV, experience). Bridge underwriting weights asset and exit strategy more than credit.
Most bridge loans have extension options — typically 3-6 month extensions at additional points (0.5-1%). Build extension cost into your plan if exit timing is uncertain.
Fix and flip loans include rehab funds (drawn as work is completed). Bridge loans are typically purchase-only or refinance-only. Some lenders offer hybrid bridge + rehab structures.
No — LendingStreet places bridge loans across a marketplace of 30+ capital sources. We match your scenario to the source offering the best combination of speed, terms, and execution probability.