Bridge Loans for Commercial and Investment Real Estate

A bridge loan is short-term financing that lets you buy, renovate or stabilize a property before it qualifies for long-term debt. Bridge lenders underwrite the property, the business plan and your exit, so they close faster and take on deals banks decline. Tribune Funding matches your deal with private lenders, debt funds and bank bridge programs, and plans the refinance on day one.

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Bridge Loan Programs

Typical Bridge Loan Terms

Term	Typical range
Loan size	About $250,000 to $50 million+
Rate	About 8% to 12%, fixed or floating over SOFR
Points	1 to 3 at origination; 0.25% to 1% per extension
Term	12 to 36 months, plus extension options
Leverage	65% to 75% of as-is value; up to 80% to 90% of total cost on value-add
Payments	Interest-only; interest reserves available
Recourse	Full recourse to non-recourse with carve-outs, depending on size and lender
Property types	Multifamily, mixed-use, retail, office, industrial, hospitality, self-storage, land

Estimate your monthly carry with the interest-only calculator, and test your takeout loan with the commercial loan calculator.

When a Bridge Loan Makes Sense

• You need to close faster than a bank, SBA or agency lender can.
• The property needs renovation, re-tenanting or lease-up before it qualifies for permanent debt.
• Your bank loan is maturing and the property is not ready to refinance.
• You are on a 1031 exchange deadline.
• The property is transitional or unusual and banks will not lend on it today.

What Bridge Lenders Look At

Factor	What lenders want to see
As-is and stabilized value	Appraisal or valuation supporting both
Business plan	Budget, timeline and leasing assumptions grounded in the market
Exit	Takeout loan that pays off the bridge at conservative rates, or credible sale comps
Sponsor	Experience with similar projects, liquidity and net worth
Debt yield	Often 7% to 9%+ at stabilization
Credit	Matters less than with banks; recent events need explanation

Example: Value-Add Apartment Bridge Loan

A sponsor buys a 24-unit building for $2.4 million with a $480,000 renovation plan. The bridge lender funds 75% of the purchase ($1.8 million) plus 100% of the rehab ($480,000) in draws, for a $2.28 million loan at 10% interest-only. After renovation, NOI rises from $150,000 to $250,000. At 6.75% with a 1.25 DSCR, a permanent lender would lend about $2.57 million, enough to repay the bridge. The full walkthrough is in our commercial bridge loan guide.

Know the Full Cost

• Interest for the full hold, including time to stabilize
• Origination points, exit fees and extension fees
• Appraisal, environmental, legal and draw inspection costs
• Rate cap cost on floating-rate loans

Compare bridge and hard money pricing in hard money vs. bridge loans.

What You Will Need

• Purchase contract or payoff statement
• Business plan: budget, timeline and exit
• Rent roll and trailing 12-month operating statement
• Contractor bids and scope of work
• Entity documents and sponsor real estate schedule
• Personal financial statement and proof of liquidity

How It Works

1. Send the deal summary with price, budget, current and projected income, and your timeline.
2. Receive term sheets from lenders whose programs fit the property and business plan.
3. Order third-party reports: appraisal, title, environmental and insurance.
4. Close, often in 1 to 4 weeks, with the permanent refinance already mapped out.

Bridge Loan Guides

Frequently Asked Questions

What is a commercial bridge loan?

Short-term financing, usually 12 to 36 months, used to buy, renovate or stabilize a property before refinancing into permanent debt or selling.

How fast can a bridge loan close?

Well-prepared deals can close in 1 to 2 weeks. Most close in 2 to 4 weeks, depending on the appraisal, title and documents.

What are bridge loan rates in 2026?

Typical quotes run from about 8% to 12%, plus 1 to 3 points, depending on leverage, property type, sponsor experience and whether the rate is fixed or floating.

How much can I borrow with a bridge loan?

Usually 65% to 75% of as-is value. Value-add lenders may fund up to 80% to 90% of total cost, with renovation funds released in draws.

Do bridge loans require tax returns?

Many private bridge lenders do not. They focus on the property, the business plan and the exit. Larger and bank bridge loans may require full financials.