Short-term loans that close fast and carry a property to a sale, a refinance or a stabilized loan.
A bridge loan is short-term real estate financing that closes quickly and carries a property to its next step: a sale, a stabilization, a refinance into a long-term loan, or the completion of a 1031 exchange. Bridge lenders underwrite the property and the exit more than the borrower's income, which makes them useful when a property is not yet financeable conventionally because of vacancy, condition or timing.
Speed and flexibility cost more than permanent financing, and the exit has to be realistic before closing. Extension fees and maturity dates matter when a plan runs long. These guides explain bridge loan structures, costs, exit strategies, and how investors move from bridge debt into DSCR and permanent loans.
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A bridge loan is a short-term loan that funds a property purchase or refinance until long-term financing or a sale is possible. It is commonly used for properties that need work, are not yet leased up, or must close faster than a conventional lender can manage.
How long do bridge loans last?
Terms vary by lender and project, commonly from several months to a few years, sometimes with extension options for a fee. The term should match the business plan with a cushion, because a plan that runs past maturity forces an expensive extension or refinance.
What exit strategies do bridge lenders accept?
Common exits are a sale of the property, a refinance into a DSCR or other long-term loan after renovation or lease-up, or the completion of an exchange. Lenders want to see that the exit is realistic, for example rents that will support the refinance or comparable sales that support the price.
How MercFinancial places it
Real Estate Funding — DSCR, fix and flip, construction, bridge and portfolio loans for investors.