A bridge loan is short-term financing (typically 6-24 months) that lets a real estate investor close on a new property before selling or refinancing an existing one. Bridge loans are asset-based, close in 7-21 days, and don't require the tax returns, W-2s, or DTI calculations of a conventional loan.
Common bridge scenarios: (1) buying a new rental before selling the current one and using the equity as down payment, (2) closing on a foreclosure or auction property where a conventional lender can't meet the timeline, (3) funding a value-add multifamily rehab before stabilizing and refinancing into permanent debt, (4) 1031 exchange where the replacement property must close within 180 days.
Typical bridge terms: 65-75% LTV, 9-12% interest rate, 1-3 points, interest-only monthly payments, no prepayment penalty, and either a hard maturity date or 3-6 month extension options. Some bridge programs allow rehab holdbacks so you can draw construction funds against the loan.
DSCRloans.net brokers bridge and fix-and-flip capital across a nationwide lender panel. Get a bridge quote or compare against a longer-term DSCR loan.