Bridge Loans
What is a bridge loan for real estate investors?
A bridge loan is short-term, business-purpose financing — typically 6 to 24 months — used to buy or reposition an investment property quickly until long-term financing or a sale is in place. It is sized on the property's value and your exit plan rather than your personal income.
Today's market benchmarks
Bridge loans are priced per scenario. These live benchmarks show where the broader market sits today. See Today's Rates
Market benchmarks are temporarily unavailable because the Federal Reserve's FRED data service didn't respond. We don't show figures we can't confirm — please check back shortly.
Source: Federal Reserve Economic Data (FRED). PMMS is published weekly; SOFR and Treasury yields are published each business day. These are wholesale market reference rates — investor loan pricing carries a risk-adjusted spread on top and is not an offer or rate lock.
- 12–24 month interest-only loan for acquiring, repositioning, or seasoning a property.
- Up to 80% LTV; no in-place DSCR required.
- 10–14 day closings — designed for 1031 deadlines and auctions.
- Roll straight into a 30-year DSCR loan when stabilized.
Buy now, refinance later when the property is stabilized.
Our Bridge Loans give investors fast, flexible capital to close on time-sensitive deals — 1031 exchanges, off-market acquisitions, value-add repositions, or lease-up plays — with a clean path to a DSCR takeout once the property is stabilized.
Get your Bridge Loan Scenario Summary.
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
What a bridge loan is
A bridge loan is short-term (12–24 month), interest-only real-estate financing designed to get an investor from acquisition to a defined stabilization event — placing a tenant, completing light renovation, finishing lease-up, or hitting a 1031 exchange deadline. The property doesn't need to cash-flow yet; underwriting focuses on the asset, the business plan, and the borrower's exit.
Bridge vs. DSCR vs. Fix & Flip
- Bridge: asset-based, no in-place DSCR required, light-to-no rehab. Best for stabilization plays and 1031 timing.
- DSCR: long-term (30-yr), requires in-place rent covering PITIA. Best for buy-and-hold.
- Fix & Flip: bridge with a rehab escrow and inspection-verified draws. Best for buy-renovate-resell.
Common bridge scenarios
- 1031 exchange: your replacement property closing must happen inside the 180-day window; a bridge closes fast enough to hit the deadline.
- Off-market / auction: a seller wants 10-day certainty; a bridge closes on that timeline and the DSCR takeout comes 6–12 months later.
- Lease-up: a small multifamily is 40% occupied at purchase; bridge holds until stabilized DSCR qualifies.
- Cash-out to buy the next deal: a bridge extracts equity from a stabilized property fast, funds the next acquisition, then both properties refinance to long-term.
Rates & terms
Bridge rates typically run 8%–11% depending on LTV, asset type, and exit certainty. 12- and 24-month terms are standard, all interest-only. No prepayment penalty. Origination is typically 1–2 points.
Illustrative only. Not a quote or commitment to lend.
Get your Bridge Loan Scenario Summary
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Why investors choose this Bridge loan program
Fast bridge closings for competitive offers and 1031 deadlines.
Business-purpose bridge — no tax returns or W-2s required.
Preserve cash flow during the reposition or lease-up period.
Refinance into a 30-yr DSCR loan with the same lender when stabilized.
Get your Bridge Loan Scenario Summary
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Bridge qualifications at a glance
Program guidelines vary by investor. These are typical ranges — a Loan Officer confirms exact numbers on your scenario.
| Requirement | Typical | Notes |
|---|---|---|
| Minimum credit score | 680 (700+ for max leverage) | |
| LTV (purchase / refi) | Up to 80% of as-is purchase price | Rate/term to 75%; cash-out capped at 65% LTV. |
| Term | 12–24 months IO | 6-month extension available. |
| In-place DSCR | Not required | Underwritten to business plan and exit. |
| Reserves | 6–12 months PITIA | Tier depends on experience and complexity of the plan. |
| Experience | Verifiable investor track record | Max leverage requires a documented history of completed deals; lighter files price at reduced LTV. |
| Property types | 1–4 unit residential | Small multi and mixed-use case-by-case. Ground-up and heavy rehab go to our construction or fix & flip programs. |
| Vesting | LLC / LP / Corp standard | |
| Loan amount | $100K – $3M | |
| Prepayment penalty | None | |
| Origination | 1–2 points typical |
Ranges are typical program guidelines and vary by investor, credit tier, and market. Not a commitment to lend.
Bridge loan use cases
- 1031 exchange timing gaps
- Off-market and auction acquisitions
- Lease-up / stabilization bridge
- Cash-out to fund the next deal
Get your Bridge Loan Scenario Summary
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Bridge rate & market update
Compiled from Freddie Mac PMMS, U.S. Treasury, and BLS releases. Figures are published with the period they cover and the date they were retrieved.
Bridge loan vs. other investor financing
Bridge financing compared with the other options investors use between deals. General ranges only.
| Feature | Bridge Loan | DSCR Loan | Hard Money | Conventional |
|---|---|---|---|---|
| Typical term | 6–24 months | 30 years | 6–18 months | 30 years |
| Sized on | As-is value + exit plan | Rent ÷ PITIA | As-is value | Personal income |
| Speed to close | Fast | 21–30 days | Fastest | 30–45 days |
| Needs stabilized rent | No | Yes | No | No |
| Income docs | None | None | None | 2 yrs tax returns |
| Best for | Quick buys, repositioning | Long-term hold | One-off rehab | Owner's first rental |
Get your Bridge Loan Scenario Summary
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Benefits and trade-offs of a Bridge loan
- 10–14 day closings — designed for auctions and 1031 deadlines.
- No in-place DSCR requirement.
- Interest-only preserves cash during reposition.
- No prepayment penalty — pay off any time.
- Same lender takeout to DSCR — cheaper, faster.
- Business-purpose: no personal income documentation.
- Higher rates than long-term DSCR (8–11%).
- Short term forces a defined exit strategy.
- Origination fees of 1–2 points.
- Extension fees if the stabilization runs long.
- Not for owner-occupied properties.
Get your Bridge Loan Scenario Summary
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Bridge loan worked example
An investor needs to close on a $300,000 rental in 14 days before a long-term refinance is possible. A bridge loan at 75% of purchase covers the gap, with a planned DSCR refinance once the property is leased.
- Purchase price
- $300,000
- Bridge loan (75%)
- $225,000
- Cash to close (before costs)
- $75,000
- Planned hold
- 6 months
- Interest-only payment (illustrative)
- ≈ $2,060 / mo
- Carry over 6 months
- ≈ $12,360
- Lease-up rent
- $2,500 / mo
- Exit: DSCR refinance at 75% LTV
- Pays off the bridge
Outcome: The bridge buys time to win the deal and lease the property; the long-term DSCR loan then replaces it. The exit plan must be realistic before you borrow.
Illustrative only. Not a rate quote, lock, offer, or commitment to lend. Binding terms appear on your Loan Estimate.
Bridge loan process: from scenario to close
- STEP 1Scenario review
Send address, purchase, business plan, and exit strategy. Initial scenario review same day on complete applications.
- STEP 2Application & docs
Entity docs, ID, insurance, and PoF for reserves.
- STEP 3Appraisal / BPO
As-is (and as-stabilized when relevant) valuation, 5–7 business days.
- STEP 4Underwrite & close
10–14 business days on a clean file.
- STEP 5Exit to DSCR
Refi into long-term DSCR when stabilized — one team, one file.
Get your Bridge Loan Scenario Summary
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Bridge loan document checklist
Here's what to have ready when you apply. Missing items can be added during processing — but a complete file closes faster.
- Government-issued photo ID (driver's license or passport) for every guarantor
- Entity documents (LLC / LP / Corp): Articles of Organization, Operating Agreement, EIN letter, Certificate of Good Standing
- Voided check or bank letter for the funding account
- Two most recent months of asset statements showing down payment + reserves
- Homeowners / landlord insurance quote naming the lender as mortgagee
- Purchase contract (purchase) or existing note & mortgage (refinance)
- Preliminary title commitment ordered through an approved title company
- Current lease(s) or Section 8 HAP contract if the property is tenant-occupied
- Property tax bill and HOA statement (if applicable)
- Payoff statement from current lender (refinance only)
- Written business plan and exit strategy (stabilize + refi, sell, or 1031 completion)
- Current rent roll (if property is partially occupied)
- T-12 operating statement (if property is operating)
Bridge loans in Florida, Colorado, and LLC-eligible states
Simply Approved Mortgages LLC (NMLS #2620881) is a mortgage broker, not a direct lender, and arranges residential mortgage loans in Florida and Colorado. Bridge business-purpose loans may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Bridge loan questions, answered
The questions investors ask us most — plus the exact answers we give on the phone.
How is a bridge loan different from a DSCR loan?
A bridge is short-term (12–24 months), interest-only, and doesn't require the property to already cash-flow. DSCR is long-term (30-yr) and requires in-place rent to cover PITIA.
Is there a prepayment penalty?
No — pay off any time inside the term with no exit fee.
Do you require a stabilized DSCR?
No. Bridge loans are underwritten to the asset and business plan, not to in-place cash flow.
What's the minimum credit score?
680 minimum; 720+ gets best pricing and highest leverage.
Can I roll straight into a DSCR loan?
Yes — our bridge-to-DSCR pathway keeps the same file and reuses the appraisal where possible.
How fast can a bridge close?
10–14 business days on a clean file. Same-day scenario feedback once we have your completed application and supporting documents.
Do bridge loans work for 1031 exchanges?
Yes — bridge loans are one of the most common ways to hit the 180-day 1031 replacement deadline when conventional financing won't close in time.
What LTV can I get?
Up to 80% on purchase and rate-and-term refinance; 75% on cash-out.
Can I cash out equity to buy the next deal?
Yes — cash-out bridge is a standard scenario. Refinance both properties into long-term DSCR debt afterward.
What happens if I need more than 24 months?
A 6-month extension is available on most programs. If you need materially more time, plan to refinance mid-bridge into a DSCR or new bridge.
How high are bridge rates?
Typically 8%–11% depending on LTV, asset type, and exit certainty.
Is business-purpose really the requirement?
Yes — bridge is business-purpose only. Owner-occupied loans require consumer disclosures and are not eligible.
Which calculators should I run before financing a rental?
Start with the DSCR calculator to test rent against the payment, then the cap rate calculator for the unlevered yield, the cash-on-cash return calculator for the levered year-one return, and the ARV calculator when the plan involves a rehab. All outputs are illustrative estimates, not an approval, an offer of credit, or a commitment to lend.
Do the calculators work for every state?
No. Results are shown only for the states where we arrange financing, where Simply Approved Mortgages LLC arranges business-purpose investment property financing. Selecting any other state withholds results — the check runs on our servers and fails closed.
Can I share or save my calculator results?
Yes. Every calculator produces a share link that encodes the scenario inputs only — names, emails, phone numbers, and addresses are never included — plus a copy-to-clipboard summary of the key numbers you can paste into an email or a deal memo.
What is Simply AI and can it approve my loan?
Simply AI explains the figures already shown on the page in plain English. It provides educational explanations only, does not quote rates, does not confirm eligibility, and cannot approve financing. Rates, eligibility, fees, and terms are subject to verification and change — speak with a licensed loan originator before making a financing decision.
Government & regulatory references
Independently verify program rules and consumer protections.
Related programs & tools
Run the numbers on your Bridge deal
Free calculators for the metrics underwriting actually looks at, plus side-by-side deal comparisons. All outputs are illustrative estimates and are not an approval, offer of credit, or commitment to lend.
Whole-deal underwriting: PITIA, DSCR, NOI, cap rate, cash-on-cash and refinance proceeds.
Test rent against PITIA and see the ratio a lender underwrites to.
Year-one levered return on the cash you actually put into the deal.
NOI, unlevered yield, and implied value at your target cap rate.
Comp-based after-repair value with the 70% rule and profit projection.
Model the rehab loan and the DSCR refinance in one place.
The monthly rent required to reach a 1.00, 1.10 or 1.25 ratio.
Full monthly PITIA — principal, interest, taxes, insurance and dues.
LTV, CLTV, equity, and proceeds available at your target leverage.
Proceeds, new payment, DSCR impact and break-even in months.
Cash to close: fees, prepaids, escrow reserves and credits.
Cash flow, DSCR and principal paydown side by side.
Cost of a step-down prepay at your planned exit year.
Investor metrics for the markets where we arrange financing.
Deal comparisons
- DSCR Loan vs BRRRR Strategy
- DSCR Loan vs Fix & Flip Loan
- DSCR Long-Term Rental vs Short-Term and Mid-Term Rental Financing
Program availability, leverage, and terms vary by state and program. Business-purpose, non-owner-occupied investment property only; owner-occupied use is not supported. Simply Approved Mortgages LLC is a mortgage broker and arranges — but does not make — loans. Equal Housing Opportunity.
Get your Bridge Loan Scenario Summary.
Send us the property, purpose, and exit — we send back a bridge sizing summary: max loan, interest-only payment, points and fees, timeline, and exit strategy analysis.
- Max loan at 75–80% LTV
- Interest-only monthly payment
- All-in cost estimate (points + fees)
- Exit strategy sanity check
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Get your personalized investor loan quote
Pick the loan type that fits your deal and complete a short, tailored pre-qualification. A licensed loan officer follows up with an initial scenario review once we have your credit authorization and supporting documents — usually the same business day. Formal pricing and terms follow underwriting.
Pick a loan type
You can change this any time.Tell us about your scenario
The form below is tailored to DSCR rental loan — only the questions your program needs.