Bridge Loans
A bridge loan is short-term, business-purpose financing used to address a timing or property-condition gap on the way to a sale or permanent financing. Investors may use bridge financing to move quickly or stabilize a property before refinancing. Structure, terms, and eligibility vary by lender, scenario, and jurisdiction.
Who It's For
- Investors who need to close quickly
- Borrowers stabilizing a property before permanent financing
- Investors managing timing gaps between transactions
Common Uses
- Acquiring a property before long-term financing is in place
- Stabilizing occupancy or condition before a DSCR refinance
- Managing timing between a sale and a purchase
Qualification Overview
- Bridge programs generally focus on the property, the exit strategy, and the borrower’s plan.
- Credit, liquidity, and experience are typically reviewed.
- Structure and requirements vary by program and investor.
Common Variables
- Property value and condition
- Exit strategy (sale or refinance)
- Borrower liquidity and experience
- Loan term
Eligible Property Types
- Single-family properties
- 2–4 unit properties
- Certain eligible multifamily and commercial properties
Common Documentation
- Exit strategy details
- Property information
- Entity documents when vesting in an LLC
Loan Purpose
Short-term business-purpose financing bridging to a sale or permanent financing.
Potential Advantages
- Speed and flexibility for time-sensitive scenarios
- Can enable stabilization before permanent financing
- Useful when a property is not yet DSCR-ready
Potential Considerations
- Short-term financing carries different pricing than long-term loans
- A clear exit strategy is important
- Terms vary by scenario
Frequently Asked Questions
- When would I use a bridge loan instead of a DSCR loan?
- Bridge loans suit short-term or transitional situations — for example, closing quickly or stabilizing a property. A DSCR loan is typically a longer-term option once the property produces qualifying cash flow.
Program details are general and for educational purposes only. This is not a commitment to lend, an offer, or specific loan terms. All programs are business-purpose investor loans subject to underwriting, property review, investor guidelines, and applicable law. Availability, eligibility, and terms vary by state and transaction. Simple DSCR is an assumed business name of WooHoo Mortgage LLC, NMLS #2347993.