A bridge loan exists to solve one problem: capturing a deal that cannot wait for a 60 to 90 day conventional close. When the value is in the timeline, speed becomes the deciding factor, not the financing structure itself.
What a Bridge Loan Actually Does
A bridge loan is short-term, interest-only financing that carries you from acquisition to a defined exit. That exit is usually a refinance into permanent debt or a sale after you have executed your business plan. The loan is designed to be temporary, typically running 12 to 24 months.
Our bridge rate is interest-only and standardized, with a ceiling of 13% that we never exceed. The point of a bridge loan is not the rate. The point is the deal economics that the financing unlocks.
When a Bridge Loan Makes Sense
Bridge financing fits specific situations where conventional lending moves too slowly or cannot underwrite the asset in its current condition.
- Time-sensitive acquisitions. A seller wants to close in 14 days. A bank needs 75. The bridge loan covers the gap.
- Value-add repositioning. The property does not yet produce the income a permanent lender requires. You bridge, execute the plan, then refinance on stabilized numbers.
- Auction or distressed purchases. Funds must be available on a fixed date with no contingency for slow underwriting.
- Maturity gaps. An existing loan is coming due before your permanent financing is ready.
The Math Behind the Decision
Consider a mobile home park listed at $2,000,000 with deferred lot rent and 30% vacancy. A conventional lender will not finance it at full value because the in-place income does not support the debt. A bridge loan funds the purchase, you stabilize occupancy over 18 months, and the higher net operating income then qualifies the property for permanent debt at a stronger valuation.
The cost of bridge financing is almost always smaller than the cost of losing a deal you could have repositioned.
Comparing Speed to Carry Cost
Run the numbers before you decide. If a 21 day close lets you acquire at a 7.5% cap rate that would otherwise sell to a faster buyer, the months of interest-only payments are a line item, not the headline. Model your carry cost against the equity you create through stabilization.
How to Prepare for a Fast Close
- Have your purchase agreement and timeline documented.
- Provide a clear business plan with the exit defined (refinance or sale).
- Show the source of repayment, not just the acquisition logic.
- Keep entity documents and prior operating statements ready.
Borrowers who arrive organized close faster, because underwriting spends its time on the asset rather than chasing paperwork.
Know Your Exit Before You Borrow
A bridge loan without a credible exit is a risk, not a tool. Define whether you refinance into a DSCR or agency product or sell after stabilization, and confirm those numbers work at today's valuations. If you are financing manufactured housing specifically, review our mobile home park loan options to map the path from bridge to permanent debt.
If you have a time-sensitive acquisition and a clear plan to stabilize or refinance, start a conversation with our lending team to see how fast your deal can close.