A bridge loan exists to close acquisitions in days rather than the 45 to 60 days a conventional lender typically needs, which is the difference between winning a deal and watching it go to another buyer. Bridge lending is short-term, interest-only financing designed for a specific job: secure a property now, then execute a plan that sets up a permanent exit later.
What a Bridge Loan Actually Does
Bridge financing solves timing problems. You use it when the property or the borrower does not yet qualify for permanent debt, or when the clock matters more than anything else. The loan is interest-only for the term, which keeps monthly carrying costs predictable while you do the work.
Common scenarios for borrowers
- Speed-driven acquisitions: A seller wants a 14-day close. Conventional underwriting cannot move that fast.
- Value-add repositioning: You buy a mobile home park with 70% occupancy, raise it to 92%, then refinance into long-term debt at a stronger valuation.
- Maturity gaps: An existing loan comes due before your permanent financing is ready, and you need a bridge to cover the window.
- Distressed or below-market purchases: Properties that need stabilization before a bank will lend against them.
Why the Economics Work
The case for a bridge loan rarely comes down to a single line on the term sheet. It comes down to deal math. If a 12-month bridge lets you acquire a property at a 7% in-place cap rate, push net operating income through better operations, and refinance into permanent debt at a higher stabilized value, the equity you create can dwarf the interest-only carry you paid during the hold.
Speed is the asset. A loan that closes in 10 days lets you negotiate a better purchase price, because certainty of close has cash value to a seller.
How we structure rate
Our bridge rate is interest-only and standardized. We operate under a ceiling of 8.5% to 13% that we never exceed. There is no rate menu and no negotiation, so you can model your numbers once and trust them through close.
When a Bridge Loan Is the Wrong Tool
Bridge debt is not for buy-and-hold investors who already qualify for permanent financing and have no time pressure. If you plan to own a stabilized asset for 10 years with no near-term events, a DSCR or agency loan usually serves you better. Bridge loans reward a clear exit, whether that is a refinance or a sale, within the term.
- Define your exit before you sign.
- Confirm the timeline for your value-add or refinance plan.
- Stress test the deal against a slower exit than you expect.
A Practical Checklist Before You Apply
- A purchase price and a closing deadline.
- A written business plan for the hold period.
- A defined exit (sale or permanent refinance).
- Proof of funds for the down payment and reserves.
If you are evaluating a park acquisition with a tight close, review our mobile home park loan programs to see how the structure maps to your deal, and learn more about how we approach bridge lending across asset types.
Bring us your deal and your deadline, and we will tell you whether a bridge loan fits before you waste a day. Start your application at Requity Group lending.