Commercial Bridge Loans | Short-Term CRE Financing Guide 2026

Short-Term Capital for Transitional CRE Deals

Bridge loans provide fast, flexible financing for acquisitions, value-add repositioning, lease-up, and recapitalization — while you execute your business plan and prepare for permanent debt.

65–80%

Max LTV

7–12%

Rate Range

12–36 mo

Typical Term

14–30 days

Close Time

WHEN TO USE A BRIDGE LOAN

6 Scenarios Where Bridge Beats Permanent

Bridge loans exist because permanent lenders won’t finance properties in transition. If the property isn’t stabilized yet, a bridge loan buys you time to execute your plan and qualify for permanent terms.

Value-Add Acquisition

Buy below-market, renovate, raise rents, stabilize, then refi into permanent debt at higher valuation. The classic bridge use case.

Lease-Up Period

Recently completed or repositioned property needing 6–18 months to reach stabilized occupancy. Bridge carries you until the rent roll supports permanent terms.

Maturing Loan Exit

Current loan maturing, property not ready for competitive permanent financing. Bridge buys time to improve NOI or wait for better rates.

Quick-Close Acquisition

Competitive deal requiring 14–21 day close. Bridge funds fast, then you refi into permanent debt at your own pace without time pressure.

Recapitalization

Pull equity from an appreciated property to fund the next deal, then refi the bridge into permanent at the new higher value. Capital recycling strategy.

Distressed Asset Purchase

Acquire distressed debt or REO at discount. Bridge lenders handle non-performing assets and credit-impaired situations banks won’t touch.

BRIDGE LENDER COMPARISON

Bank vs. Debt Fund vs. Private Bridge

Bank Bridge

Debt Fund

Private / Hard Money

Rate

7 – 9%

8 – 11%

10 – 14%

LTV

65 – 75%

70 – 80%

60 – 70%

Speed

30 – 45 days

14 – 30 days

7 – 14 days

Term

12 – 36 months

6 – 24 months

Recourse

Full recourse

Non-recourse available

Full recourse

Best For

Relationship, best rate

Higher leverage, flexible

Speed, distressed

FREQUENTLY ASKED QUESTIONS

Bridge Loan FAQ

What is the exit strategy for a bridge loan?

The three primary exits: refinance into permanent debt (most common), sell the property at the improved value, or recapitalize with equity. Every bridge lender will ask about your exit plan at application — having a clear, credible strategy is essential for approval.

How fast can a bridge loan actually close?

Private lenders: 7–14 days. Debt funds: 14–30 days. Bank bridge: 30–45 days. Speed depends on how quickly you can provide documents, complete the appraisal, and clear title. Having a complete package ready before you apply is the biggest accelerator.

What happens if I can’t exit the bridge loan before maturity?

Most bridge loans include 1–2 six-month extension options (typically 0.5–1% fee per extension). If you exhaust extensions, you’ll need to find a new bridge lender, negotiate with the existing lender, or sell. This is why realistic timeline planning is critical.

Are bridge loans interest-only?

Almost always. Bridge loans are structured as interest-only during the term, with the full principal due at maturity (or exit). This keeps carrying costs low while you execute the business plan. Some lenders also capitalize interest into the loan balance.

Can I get a non-recourse bridge loan?

Debt funds and some institutional bridge lenders offer non-recourse on deals above $3–5M. Expect slightly higher rates and lower leverage for non-recourse. Bank bridges and most private/hard money are full recourse. Our advisors identify the best non-recourse options.

Bridge loan vs. hard money — what’s the difference?

Functionally similar, but bridge loans typically refer to institutional or bank short-term financing (lower rates, higher minimums) while hard money describes private capital (higher rates, faster, more flexible). Both serve the same purpose: short-term capital for transitional situations.

Need Short-Term CRE Capital?

Our advisors compare bridge options across bank, debt fund, and private lenders. We structure the exit strategy alongside the bridge from day one.

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