A maturity date that arrives before the project is done puts you on the lender's clock. A new bridge loan can pay off the old one and give you time to finish, sell or refinance.
In short: If your hard money or short-term loan is maturing and the lender will not extend, a new bridge loan can pay it off. Bridge rates start at 7.99%, interest-only payments are common, and a bridge can close in as little as 10 days. The new loan is sized on the property's current value and your exit plan, so it works best when there is equity and a clear path to a sale or a DSCR refinance. Start as soon as you know the extension is not coming.
Short-term loans are built for a plan: buy, renovate, sell or refinance. Delays in permits, contractors, the sale or leasing can push the project past the maturity date.
Some lenders extend for a fee. Others will not, or they offer an extension on terms that no longer make sense. Once a loan passes maturity, default terms in your note may apply, so moving early matters.
If the project is finished and rented, you may not need a bridge at all. A DSCR refinance can pay off the hard money directly with a 30-year loan.
This example is illustrative and not a quote. An investor's hard money loan has a $280,000 payoff and matures in three weeks. The lender will not extend. The rehab is mostly done and the property's current value is $380,000.
A new bridge loan of $280,000 pays off the old loan. That is about 73.7% of current value. The investor pays closing costs in cash. At a sample interest-only rate of 9.25%, the bridge payment is about $2,158 a month.
The investor finishes the remaining work, leases the property and later refinances into a DSCR loan, or lists it for sale, depending on the plan.
| Item | Amount |
|---|---|
| Current value | $380,000 |
| Hard money payoff | $280,000 |
| New bridge loan | $280,000 (about 73.7% of value) |
| Monthly interest-only payment at sample 9.25% | About $2,158 |
| Closing costs | Paid by the borrower in cash |
Speed depends on the file. Bring these with your first request so the financing team can size the loan right away.
Waiting on an appraisal can eat days you do not have. Some bridge programs require no appraisal and rely on other valuation methods. Where an appraisal is needed, ordering it on day one helps.
A bridge payoff buys time. It does not fix the reason the first loan ran long. Before closing, write down what has to happen and how long it will take: the remaining work, the listing, or the lease-up and DSCR refinance.
If the plan is a DSCR refinance, check that the rent will cover a 30-year payment at 1.0x or better, and ask about seasoning, which varies by program. Our bridge to DSCR guide walks through that handoff.
Sometimes the current lender offers an extension, just not a good one. Compare the full cost of each path in dollars: the extension fee and any rate change on the old loan, against the closing costs and interest on a new bridge.
Also compare the time each one buys. An extension that is too short to finish the plan can leave you facing the same deadline again. A new loan sized to your actual timeline can be the cheaper choice even with closing costs.
Ask for the payoff in writing, good through a date past your expected closing. Confirm any fees that will be added at payoff. Keep the conversation professional. A lender that sees a payoff is coming is often easier to work with on timing.
Yes. A new bridge loan can pay off a maturing hard money or short-term loan when the property has enough equity and a clear exit plan.
A bridge loan can close in as little as 10 days. A complete file, a quick payoff letter and clear title help.
It may still be possible, but tell us right away. Default terms under your current note can raise the payoff, which affects how much the new loan needs to cover.
If the property is finished and rented, a DSCR refinance can pay off the short-term loan directly with a 30-year loan. A bridge fits better when work or leasing is still underway.
It depends on the property's value and the program. Tell us what you need, and the financing team will show what the property supports.
No. Bridge loans can finance properties with work remaining, though the scope and the exit plan affect the terms.
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