What it is
A bridge loan is a short-term option for a purchase, refinance or transition while a property is being stabilized or prepared for a longer-term loan.
Who it may suit
Investors who need a temporary financing structure and can explain how it will be repaid.
Typical uses
- Acquire or refinance an investment property
- Transition through lease-up or repositioning
- Prepare for a planned sale or longer-term refinance
More detail, when you need it
How is a bridge loan different from a rental loan?
A bridge loan is temporary and depends on a defined exit. A stabilized rental loan is generally evaluated for longer-term investment use. Terms, extension options and repayment costs depend on the actual lender.
What does seasoning mean for the exit?
Seasoning is a lender’s required period of ownership, loan history or stabilized performance. Check the future refinance requirements before relying on a quick transition.