· commercial · 3 min read
Bridge Loans Flexible Short-Term Financing
Discover how bridge loans can help you secure or reposition US commercial real estate. Learn about highlights, advantages, disadvantages, eligibility, FAQs, and more.

Bridge Loans: Flexible Short-Term Financing (U.S.)
Bridge loans provide fast, flexible funding for commercial real estate investors who need to close quickly, reposition a property, or bridge a gap between transactions. These loans are ideal for acquisitions, renovations, or situations where permanent financing isn’t immediately available.
Why Choose a Bridge Loan?
- Speed: Close in days, not weeks or months.
- Flexibility: Use for acquisitions, renovations, or refinancing.
- Short Terms: Typically 6–36 months, with interest-only payments.
- Asset-Based: Focus on property value, not just borrower credit.
- No Prepayment Penalty: Pay off early without extra fees (in many cases).
Loan Highlights
- Eligible Properties: Multifamily, office, retail, industrial, hospitality, mixed-use, and more
- Loan Amount Range: $1 million to $100+ million
- Interest Rate: Typically 7–12% (varies by lender and risk)
- Loan Term: 6–36 months (sometimes up to 5 years)
- Amortization: Interest-only (most common)
- Maximum LTV: Up to 75%
- Recourse: Can be recourse or non-recourse
- Prepayment: Often no penalty, but check lender terms
Advantages
- Fast Funding: Close quickly to seize opportunities
- Flexible Use: Acquisition, renovation, or refinance
- Interest-Only Payments: Lower monthly outlay
- Asset-Based Approval: Less focus on borrower credit
- No Prepay Penalty: Pay off early if you secure permanent financing
Disadvantages
- Higher Rates: More expensive than permanent loans
- Shorter Terms: Must refinance or sell before maturity
- Fees: Origination and exit fees can add up
- Potential Recourse: Some loans require personal guarantee
Eligibility & Property Types
Bridge loans are available for:
- Multifamily and apartment buildings
- Office and retail centers
- Industrial and warehouse
- Hotels and hospitality
- Mixed-use properties
- Land (select lenders)
Borrower requirements:
- Net worth and liquidity requirements vary by lender
- Experience with property type preferred
- Clear exit strategy (sale or refinance)
Frequently Asked Questions
What is a bridge loan?
A short-term loan used to “bridge” a gap—such as buying a property before selling another, or renovating before refinancing.
How fast can I close a bridge loan?
Many lenders can close in 5–15 days, depending on documentation and property type.
What are the main benefits of bridge loans?
Speed, flexibility, and asset-based approval.
What are the downsides?
Higher rates, shorter terms, and potential fees.
What types of properties are eligible?
Most income-producing commercial properties, plus some land deals.
How much can I borrow?
$1 million to $100+ million, depending on property and lender.
Real Stories
“The bridge loan let us acquire and renovate a property that wouldn’t qualify for bank financing. We refinanced into a permanent loan within a year.”
— Commercial Investor, California
Ready to Move Fast?
Move Fast, Invest Smart.
Bridge loans make it possible. Get a personalized quote or talk to our team today.
Glossary
- Bridge Loan: A short-term loan to “bridge” a gap in financing. Learn more
- Interest-Only: Payments cover only interest, not principal. Learn more
- Recourse Loan: Lender can pursue personal assets if you default. Learn more
Move fast, invest smart. Bridge loans make it possible.
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Inspired by CommLoan’s Bridge Loans page and industry resources.