Program Overview
Bridge Loans — Move Fast, Close Deals, Bridge the Gap
A bridge loan is short-term financing designed to close the gap between where you are now and where your long-term financing will be. In real estate investing, speed is money — the ability to close in 10–14 days versus 30–45 days can be the difference between winning a deal and losing it to a cash buyer.
Bridge loans are typically interest-only, 12–24 month loans with a clear exit strategy planned at origination: a sale, a refinance, or a permanent loan once the property is stabilized or leased. The property is the collateral — not your income.
When Bridge Loans Make Sense
Competitive & Time-Sensitive Acquisitions
Off-market deals, auctions, estate sales, and foreclosures often require fast closes. A bridge loan lets you commit and close before a competitor does — then refinance at your pace once you own it. Sellers choose certainty over price.
Buy Before You Sell
Found your next investment before your current property has sold? A bridge loan lets you acquire the new property now using your existing equity, then repay the bridge when your sale closes — no need to let a great deal pass because of timing.
Stabilization Before Refinance
Vacant, partially leased, or below-market-rent properties don't qualify for DSCR loans. Use a bridge loan to acquire, renovate, and lease up — then refinance into a long-term DSCR once the property is stabilized and cash-flowing.
Commercial & Mixed-Use Properties
Retail, office, mixed-use, and light industrial properties that don't fit conventional lending boxes are ideal bridge loan candidates. Close on value-add commercial assets and reposition before securing permanent financing.
Exit Strategies — Your Plan to Repay
Every bridge loan is underwritten with a defined exit strategy. The most common exits include:
- Sale of the property — after renovation or market appreciation
- Refinance into DSCR — once the property is leased and producing rental income
- Refinance into conventional or Non-QM — once the borrower qualifies under permanent loan guidelines
- Sale of another property — using proceeds from a concurrent sale to repay the bridge
- New equity raise or partner buyout — restructuring the deal with fresh capital
Frequently Asked Questions
How is a bridge loan different from a hard money loan?
Bridge loans and hard money loans are often used interchangeably, but there are subtle differences. Hard money loans typically focus on the asset value alone, with less emphasis on borrower credit or financials, and often carry higher rates. Bridge loans generally require a slightly stronger borrower profile but offer better rates and terms. Both are short-term, asset-backed, and close fast. HQ Lending works with both types of lenders depending on your scenario.
What LTV is available on a bridge loan?
Most bridge loans are available up to 70–75% LTV based on the current as-is value of the property. On value-add deals, some lenders will lend up to 70–75% of the After-Repair Value (ARV), which can provide significant leverage on repositioning projects. Loan amounts from $100K to $5M+ are available.
Can I refinance a bridge loan into a DSCR loan?
Yes — this is one of the most common and powerful investor strategies we see. Use a bridge loan to quickly acquire a vacant or underperforming property, stabilize it, lease it to market-rate tenants, then refinance into a 30-year DSCR once it's producing income. We can often pre-approve the DSCR exit refinance before you even close the bridge, giving you full certainty on your hold strategy.
Are there prepayment penalties on bridge loans?
Most bridge loans have no prepayment penalty, or a very short lockout period (1–3 months). This is intentional — lenders understand that a successful bridge loan ends early, either through a quick sale or refinance. Always confirm prepayment terms on your specific term sheet before closing.
What is the minimum and maximum bridge loan size?
We typically work with bridge loans from $100,000 to $5,000,000+. For deals above $5M, we work with select commercial bridge lenders on a case-by-case basis. Minimum loan sizes vary by lender, but $100K is generally the floor. Contact us to discuss your specific loan size needs.