What is a commercial bridge loan?

A commercial bridge loan is a source of short-term capital that is often used for debt service until an owner improves, refinances, leases, sells or achieves property stabilization. For example, Investors will sometimes use a bridge loan when their balloon payment in their current loan is coming due or in a situation where a business or investor may need to purchase a property quickly.

Bridge Loans for Real Estate Investors (non-owner-occupied properties) offer short- and mid-term financing options for renovated residential and mixed-use properties as well as purchases. These loans can be used as a bridge while waiting to sell your completed project or obtaining long-term financing for your rental property.

Bridge Loan Rates 

Bridge loans typically have a variation in rates according to the market. This can be anywhere from 8% and 13% for 12-24 months. Closing is generally faster than traditional loans.