Two investor bridge quotes can look similar on rate and still cost thousands of dollars apart. The difference is usually in the fine print.
In short: To compare bridge loan offers, calculate the total dollar cost over the time you actually expect to hold the investment property, then check leverage, extension terms, valuation method and closing speed. Rate alone is misleading because points, fees, extension charges and how interest is calculated can outweigh a lower rate. The cheapest offer for a 6-month hold is often not the cheapest for a 12-month hold. LendingStreet finances bridge loans on non-owner-occupied investment property and lays every option out on the same terms so you can compare them directly.
Bridge loans are short. Over a 6 to 12 month hold, upfront points and fees make up a large share of the total cost, so the rate on the term sheet tells only part of the story.
Add up every dollar: interest for your expected hold, origination points, lender fees, and any exit or extension fees. Then compare that single number across offers.
Example only. These are hypothetical offers to show the math, not LendingStreet quotes. An investor needs a $600,000 interest-only bridge loan on a non-owner-occupied property.
Offer A has a higher rate and fewer points. Offer B has a lower rate and more points. Notice that Offer A wins at both a 6-month and a 9-month hold, even with the higher rate.
| Offer A | Offer B | |
|---|---|---|
| Rate (interest-only) | 10.50% | 9.75% |
| Points | 2 ($12,000) | 3 ($18,000) |
| Lender fees | $1,500 | $2,500 |
| Interest, 6-month hold | $31,500 | $29,250 |
| Total cost, 6 months | $45,000 | $49,750 |
| Interest, 9-month hold | $47,250 | $43,875 |
| Total cost, 9 months | $60,750 | $64,375 |
If the bridge loan includes a renovation holdback, ask whether interest is charged on the full loan from day one or only on funds actually drawn. Charging on the full amount is sometimes called Dutch interest.
On a loan with a large rehab budget, that one term can change the cost by thousands. Make sure each offer is quoted the same way before you compare.
One offer may quote leverage on purchase price, another on as-is value, another on total project cost. A headline of 85% means little until you know what it is 85% of.
Convert every offer to the actual cash you need at closing, including points and reserves. That number is what matters to your investment.
| Question | Why it matters |
|---|---|
| Leverage on price, as-is value or cost? | Changes the dollars you bring to closing |
| Is rehab funded, and how much? | Affects total project cash |
| Are points financed or paid in cash? | Changes cash at closing |
| Interest reserve required? | Can tie up cash for months |
Ask what an extension costs and whether it is automatic or at the lender’s discretion. A cheap loan with no extension option can become expensive if your sale or refinance slips.
Also ask how the property will be valued. Some bridge programs, including ours, offer no-appraisal options on qualifying deals using a desktop valuation or broker price opinion, which can save time and cost.
A slightly cheaper offer is worthless if it cannot close by your contract date. Ask each source for a realistic closing timeline and what they need from you to hit it.
Our bridge programs can close in as little as 10 days on clean investor deals. Your loan officer will lay out each option’s cost, leverage and timeline in the same format.
You can request quotes from several sources, but they rarely come back in the same format. Submitting your deal through our quote form gets you 2–3 bridge options from our financing team, laid out side by side on cost, leverage and timing.
No. On a short hold, points and fees can outweigh a lower rate. Calculate the total dollar cost for your realistic hold period before deciding.
Common costs include origination points, underwriting or processing fees, valuation costs, title and closing costs, and sometimes extension or exit fees. Ask each source for a full fee list in writing.
Dutch interest means you pay interest on the full loan amount, including rehab funds not yet drawn. Non-Dutch interest charges only on money actually disbursed, which is usually cheaper when the rehab budget is large.
Not automatically. Higher leverage usually costs more and leaves less cushion if values or timelines change. Compare the cash required, the total cost and the risk to your exit plan.
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