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Project loans · Investment property

Bridge loans for real estate investors: buy now, put the 30-year loan on later.

A bridge loan gives a real estate investor short-term money to buy or hold an investment property until it can be sold or refinanced into a long-term DSCR (debt service coverage ratio) loan, which qualifies on the property's rent divided by its monthly payment. It is not for buying a home to live in before you sell your current one — that needs a residential lender.

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Leverage
70–85% LTV
Term
12–24 months
Minimum credit
660–700
Closing
7–14 days

Typical market ranges, October 2026. Not an offer — your terms depend on the deal.

How it works

A bridge loan is underwritten on the day you pay it off.

A bridge loan is a short-term, interest-only loan — 12–24 months on published programs — on a property that is close to its long-term state but not there yet. It may be vacant, mid-turnover, newly renovated or bought on a deadline. The lender is underwriting the exit: a sale, or a DSCR refinance once the property rents and seasons.

Stabilized bridge loans are for rent-ready property with no renovation planned; one program published 70% of value and 85% of cost with a 660 minimum score. Value-add bridge loans add a rehab budget released in draws and lend against after-repair value — up to 95–100% of purchase, capped at 80% of ARV, at another. If the work is more than cosmetic, you're in fix and flip territory.

Some lenders hold back an interest reserve at closing: months of payments set aside from the loan so the interest pays itself while the property is vacant. It protects you through lease-up, but it is borrowed money, so you pay interest and points on it. One construction lender requires at least a one-month reserve and lends a higher share of cost when the reserve is financed.

A bridge can also take over from a project loan that's running out of time. Lenders pitch bridge loans for finished flips and new builds that need longer on the market: one program accepts homes already listed for sale, and another's no-DSCR bridge is built for recently renovated or newly built homes listed or about to be, in C2 condition or better, at up to 70% of value. Price it against an extension first. On a $285,000 flip loan, one published schedule charges 1%, or $2,850, for three more months. A 70% bridge on a $400,000 house is $280,000 — $5,000 short of the payoff before 1.5 points ($4,200) and closing costs. At 80% of value it would be $320,000 and clear the payoff.

Refinance proceeds = new value × DSCR loan-to-value − bridge payoff − closing costs
  • Seasoning sets the calendar. About 90 days of ownership is typical before a DSCR cash-out on the new appraisal. Some lenders waive it when they made the bridge loan; others, such as Roc and Civic, cap the refinance at 80% of your cost basis — price plus documented rehab — until seasoning ends. In the example below, that would cut the refinance from $255,000 to $244,000.
  • The DSCR lender decides whether the exit works. Most want a DSCR of 1.00 or higher; one bridge lender's DSCR-exit program requires 1.10 on the lower of in-place and market rent.
  • Work out the rent the exit needs before you buy. In the example, PITIA — principal, interest, taxes, insurance and any HOA dues — is $2,201, so a 1.00 DSCR needs $2,201 of rent and a 1.10 exit test needs $2,421. The $2,650 lease clears both, at 1.20.
  • The refinance rate isn't locked while you bridge. At 7.875%, half a point above the 2025 HMDA median, the same $255,000 loan costs $1,849 a month in principal and interest instead of $1,761; PITIA rises to $2,289 and the ratio slips from 1.20 to 1.16.
  • Staying with one lender can change the price. One fix-to-rent program discounts origination 50% and the rate 0.5% when you refinance with it — and adds a point to the payoff if you don't.
WORKED EXAMPLE · BRIDGE TO DSCR IN FIVE MONTHS
Close · purchase price
$280,000
Close · bridge loan, 80% of price at 10% interest-only
$224,000
Close · cash in: 20% down, 1.5 points, ~2% closing costs
$64,960
Months 1–2 · light rehab, paid in cash
$25,000
Month 3 · lease signed
$2,650/mo
Months 1–5 · bridge interest, 5 months at 10%
$9,333
Month 5 · appraised value after work
$340,000
Month 5 · DSCR refinance at 75% of value
$255,000
Month 5 · bridge payoff + ~3% refinance costs
−$231,650
Month 5 · cash back at refinance
$23,350
Cash left in the deal$75,943

Cash in $99,293 ($64,960 + $25,000 + $9,333) less $23,350 back, with $85,000 of equity at the new value. The DSCR loan at 7.375% (the 2025 HMDA median investor rate) over 30 years is $1,761 P&I; with $300 taxes and $140 insurance, PITIA is $2,201 — a 1.20 DSCR on $2,650 rent. Excludes rent collected and carrying costs during the bridge. Illustrative only — not a rate quote.

Who it's for

Seven jobs a bridge loan does well.

Buy now, refinance laterClose at interest-only cost, then move to a 30-year DSCR loan once the rent and the appraisal support it — or once rates do.
Lease-upA vacant or partly leased property can't show in-place rent. The bridge carries it until leases are signed and the DSCR lender can count them.
Light rehabPaint, floors, fixtures: work that lifts value without a full renovation. Some bridge programs fund it in draws; others fund no rehab and expect you to pay for it.
Closing fastPublished bridge closings run as few as 7–14 days, against about 2–5 weeks for a DSCR purchase — the difference on a listing with competing offers.
Refilling cash after an all-cash buyPaid cash to win the deal? Lenders pitch bridge loans for replenishing reserves after an all-cash purchase; one sets a 6-month window for that refinance, after which the property counts as seasoned.
More time to sellA finished flip or new build that needs longer on the market than its project loan allows. A bridge can replace that loan; price it against an extension before you choose.
1031 timingA delayed exchange gives you 45 days to identify replacement property and 180 days to close. A fast bridge closing can help you make those dates; how the debt affects the exchange is a question for your CPA and qualified intermediary.
Requirements

What bridge lenders look for.

A bridge lender underwrites the property and the exit more than the borrower. Ranges are from bridge program pages published in October 2026.

Credit score
660–700 minimum at the lenders that publish one.
Property
1–4 unit homes, townhomes, PUDs and warrantable condos held as investments; one lender also takes manufactured homes. Lots and owner-occupied homes are excluded.
Condition
Stabilized programs want rent-ready property: one lender asks for C2 or better on its no-DSCR bridge and C4 or better, with no deferred maintenance, on its DSCR-exit bridge.
Leverage
70–85% of value. One lender lends 85% of cost and adds verified capex if you've owned the property under 6 months; value-add programs reach 95–100% of purchase, capped at 80% of ARV.
Loan amount
$50,000 to $5,000,000.
Term
12–24 months, interest-only: 12 months at one lender, 13 or 19 at another, 12, 18 or 24 at a third.
Valuation
Lighter than on a long-term loan at some lenders: one values in-house with no third-party appraisal, another says appraisals are in-house or waived, and a third offers exterior-only valuations case by case. The DSCR refinance at the exit will need its own appraisal.
Listed for sale
Allowed at some lenders. One bridge program accepts homes currently listed; another's no-DSCR bridge for renovated or newly built homes requires a value within the 90th percentile of the local market.
Ownership period
A refinance within 6 months of purchase is handled as a delayed purchase at one lender; after 6 months it's a seasoned refinance on current value.
Rehab
Varies by program. Some bridge loans fund no rehab at all; others fund up to 100% of the budget in draws.
Exit
A sale or a DSCR refinance. One lender's DSCR-exit bridge requires a 1.10 DSCR on the lower of in-place and market rent.
Borrower
Close in your name or an LLC; expect a personal guarantee. The property must be an investment, not a home you or your family will live in.
Documents
Purchase contract or payoff statement, lease or rent roll if leased, bank statements, entity documents and insurance. Tax returns and W-2s usually aren't required.
Costs

What a bridge loan costs in 2026.

You pay interest-only while you hold, points at closing, and nothing extra to leave early at most programs. Figures come from October 2026 bridge program pages and 2025 HMDA data.

Interest rate
Advertised bridge floors were 8.25%–8.49% in October 2026. The 2025 median across all short-term investor loans in HMDA data was 10%.
Monthly payment
Interest-only: every $100,000 borrowed at 10% costs $833 a month.
Points and fees
Origination is charged at closing, along with processing and third-party costs. Bridge pages rarely list points; published fix and flip programs run 0–2.
Interest reserve
If the lender holds back months of interest, the reserve is part of the loan amount — it raises the balance you pay interest and points on. On the example's $224,000 at 10%, interest is $1,867 a month, so a 4-month reserve borrows $7,467 more and adds $112 in points at 1.5%.
Extensions
Ask before closing. One published investor-loan schedule prices a 3-month extension at 1% of the loan.
Prepayment
None on the published bridge programs reviewed for this page, so a refinance in month 5 costs 5 months of interest, not 12.
Closing time
As few as 7 business days at one lender; 10–14 days at another.
Compare

Bridge loan vs. fix and flip loan, DSCR loan, extension or cash-out

Use a bridge when the property is close to rentable or sellable but not ready for a 30-year loan, a fix and flip loan when renovation is the plan, and a DSCR loan when it already rents. An extension or a cash-out on another rental can do part of the same job.

FeatureBuilt forTypical terms published, October 2026
Bridge loanClosing fast, lease-up, light work, or timing a refinance or sale on a near-stabilized property.70–85% of value; 12–24 months interest-only; 660–700 minimum credit; no prepayment penalty at most programs.
Fix and flip loanA renovation with a sale as the exit, with the rehab funded in draws.85–100% of purchase plus up to 100% of rehab, capped at 70–80% of ARV; 6–24 months; 600–660 minimum credit.
DSCR loanHolding a rented or rent-ready property long term, qualified on rent against the payment.Up to 80% of value on a purchase and 75% on most cash-out refinances; 30-year fixed or ARM; 620–680 minimum credit; step-down prepayment penalty common.
Extension on your current loanA few more months on a flip or construction loan when the sale or lease-up runs late.One published schedule: 1% of the loan for 3 months or 2.5% for 6, with interest continuing and no new loan to close.
Cash-out refinance on another rentalRaising a down payment from equity in a property you already own.About 75% of value on most cash-out refinances, 30-year term, roughly 90 days of ownership first. A step-down prepayment penalty is common, which makes it costly to repay within a year.

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From application to closing

Four steps from bridge to DSCR.

  1. 01Build the timeline backwardStart from the refinance: the DSCR lender's seasoning rule, your lease-up time and any work. Choose a bridge term with months to spare.
  2. 02Get your terms fastA 60-second form; tell us the exit and a loan specialist calls you back with bridge terms that get you there.
  3. 03Close and stabilizeClose in as few as 7–14 days. Finish the work, sign the lease and keep receipts for the appraiser.
  4. 04Refinance or sellOrder the DSCR appraisal once seasoning is met and let the new loan pay off the bridge — or sell, with no prepayment penalty at most programs.

Common bridge loan questions

What is a bridge loan for real estate investors?

A short-term, interest-only loan on an investment property that carries it from purchase to its exit — usually a sale or a refinance into a long-term DSCR loan, which qualifies on the property's rent against its payment. Published programs run 12–24 months at 70–85% of value. Investors use them to close fast, lease up a vacant property or finish light work before refinancing.

Can I use a bridge loan to buy a new home before selling my current one?

Not this kind. The bridge loans on this page are business-purpose loans for investment property that neither you nor your family will live in. Buying a home you'll occupy before your current one sells calls for a residential bridge loan or mortgage from a consumer lender.

How much down payment do you need for a bridge loan?

Plan on 15–30% of the price plus closing costs, because published bridge programs lent 70–85% of value in October 2026. Points come on top. In our example, a $280,000 purchase financed at 80% took $64,960 at closing: $56,000 down, $3,360 in points at 1.5% and about $5,600 of closing costs. Value-add programs that fund rehab can lend more of the purchase, capped by after-repair value.

What credit score do you need for a bridge loan?

Published minimums ran from 660 to 700 in October 2026: one stabilized bridge program set 660, and another lender 700. A higher score generally earns more leverage and a lower rate; one lender says its leverage depends on your FICO score, your record of property exits and the after-repair value together. Expect a credit pull before your terms are final.

How long is a bridge loan term?

12–24 months on published 1–4 unit programs: 12 months at one lender, 13 or 19 at another and 12, 18 or 24 at a third. Payments are interest-only, and the balance is due at maturity. Pick the term by working back from your exit — seasoning, lease-up and any work — and add slack, because extensions cost a fee.

What is a stabilized bridge loan?

A bridge loan on a property that's already rent-ready, with no renovation planned — often leased or about to be. With no construction there's no draw schedule; the loan simply holds the property until it seasons for a DSCR refinance or sells. One program published 70% of value and 85% of cost with a 660 minimum score.

How soon can I refinance a bridge loan into a DSCR loan?

Often after about 90 days of ownership, the typical seasoning period before a DSCR lender will use a new appraised value. Some lenders waive seasoning when they made the bridge loan; others will refinance sooner but cap the loan at your cost basis. Confirm the DSCR lender's rule before you choose the bridge term.

What happens if I can't refinance before the bridge loan matures?

You have three options, all better arranged early. Ask for an extension: one published schedule prices three more months at 1% of the loan, and interest keeps running. Sell the property. Or refinance into another short-term loan on today's value. Reaching maturity without one of them can put the loan in default, which typically raises the rate and adds fees.

Are bridge loan rates higher than DSCR loan rates?

Yes. In 2025 HMDA data, the median short-term investor loan carried 10% and the median 30-year investor loan 7.375%, a gap of about 2.6 percentage points. Advertised bridge floors were 8.25%–8.49% in October 2026, against published 30-year DSCR pricing of about 6.875%–7.375% for top-tier files. You pay the bridge rate for months, interest-only, so the dollar gap is smaller than the rate gap suggests.

How does an interest reserve work on a bridge loan?

Money held back from the loan at closing to cover monthly interest for a set number of months. It keeps payments current while a property is vacant or under work. Because the reserve is part of the loan, you pay interest and points on it, and once it's used up the payments come from you.

What's the difference between a bridge loan and a fix and flip loan?

The amount of work. A fix and flip loan finances a renovation — up to 100% of the rehab budget in draws — and lends against after-repair value. A bridge loan is for property that needs little or no work: it lends mainly on current value, and some programs fund no rehab at all. Both are short-term and interest-only.

Can I get a bridge loan on a house that's listed for sale?

Yes, at some lenders, and it's one of the main uses: buying time to sell a finished flip or new build. One bridge program accepts homes currently listed. Another's no-DSCR bridge is designed for recently renovated or newly built homes that are listed or about to be, in C2 condition or better, at up to 70% of value and 85% of cost.

Do bridge loans require an appraisal?

Not always a full one. Some bridge lenders value the property in-house with no third-party appraisal; another offers exterior-only valuations case by case. Expect a full appraisal at the exit instead: the DSCR lender's appraisal sets the refinance value and estimates market rent, which together decide how much you can borrow and whether the rent covers the payment.

Can I get a bridge loan on an apartment building?

Not on most 1–4 unit programs. Five or more units go to small-balance multifamily bridge lenders, which published 75% of purchase, 80–85% of cost and 70–75% of after-repair value, 12–36 month interest-only terms and 700–725 minimum scores in October 2026. The exit is stricter too: permanent small-balance loans published minimum DSCRs of 1.20–1.25, against 1.00 at most 1–4 unit lenders.

Can a bridge loan help with a 1031 exchange?

It can help with timing. In a delayed exchange, replacement property must be identified within 45 days and received within 180 days of transferring the old one, or by your return's due date if earlier. A bridge loan that closes in one to two weeks can help you meet those dates. How new debt affects the exchange is a tax question for your CPA and qualified intermediary.

Do bridge loans have prepayment penalties?

The published investor bridge programs reviewed for this page had none, so refinancing or selling early saves the remaining interest. Origination points are paid at closing either way. Read the term sheet for exit fees or minimum-interest clauses, which work like a prepayment penalty under another name.

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Related loan programs

Rental loanDSCR rental loansQualify on the property's rent, not your tax returns. Close in your LLC.Learn more →Project loanFix and flip loansPurchase and renovation funds in one short-term loan, with rehab draws.Learn more →Project loanHard money loansAsset-based private loans that close in days, not months.Learn more →Project loanBRRRR loansRehab financing now, then a refinance into a long-term rental loan sized on the rent.Learn more →
Sources and methodologyUpdated October 26, 2026

Figures are market ranges from published lender terms and public data on the dates shown. They describe the market and are not an offer. Your terms depend on the property, your credit and your experience.