A bridge loan solves timing, not money
That distinction matters more than any number on this page. A bridge loan does not make a deal affordable: it makes a deal possible on the timeline it actually has. A good property comes up and needs to close in a couple of weeks. Your permanent financing needs longer, or the property does not qualify for it yet. The bridge covers the gap between those two facts.
Everything else follows from that. The loan is short, it is interest-only, and it is underwritten on the property and your exit as much as on your income. It is also more expensive than the financing that replaces it, which is fine, because you are only supposed to hold it briefly.
What it costs and how long it runs
| Term | 2026 market | Notes |
|---|---|---|
| Interest rate | About 8% to 14% | Most investors pay roughly 9% to 12%. Leverage, experience, the asset and the exit move you within the range. |
| Points | 1 to 3 | Paid at closing, on top of your down payment. Some lenders also charge an exit fee. |
| Term | 6 to 36 months | Interest-only throughout, with the balance due at the end. |
| Leverage | Commonly 65% to 80% | Measured against value; on a renovation, lenders also look at total cost. |
| Credit | Often 650 to 680 min | Varies by lender. Better pricing comes with a stronger score, and credit becomes the tie-breaker when the property or the exit is marginal. |
| Prepayment | Ask | Short-term loans generally should not penalize you for exiting early. Confirm it in writing. |
Through our lending partners, bridge financing is priced like their fix and flip program: standard pricing starts at 12.99% interest plus 2.99 points, with loans from $50,000, a minimum credit score of 600, and up to 100% of cost or 70% of value, whichever binds first, on non-owner-occupied investment property held in an LLC or corporation. Borrowers who have paid off two loans with the lending partner in good standing can qualify for loyalty pricing of 10.99% plus 1.99 points. Leverage depends on the experience you can document over the past three years.
Need to close before your long-term loan is ready?
Send the property, the timeline and your exit. Our lending partner's team reviews whether a bridge fits and on what terms. The lender makes every credit decision.
The four exits, and the one that is not an exit
Bridge lenders underwrite your exit as carefully as they underwrite the property, because the exit is how they get repaid. A concrete, time-bound plan helps your terms. A vague one costs you, and sometimes costs the loan.
If your exit is a refinance, qualify for it before you close
This is the part investors skip, and it is where the trouble starts. Refinancing into a DSCR loan is not automatic just because the property is finished. That lender has its own requirements, and you need to meet them on the day your bridge matures, not eventually.
- Leverage on the refinance. Our lending partners' DSCR program goes up to 80% of value, with loans from $75,000 to $2 million and no minimum credit score. If 80% of the appraised value will not pay off the bridge, you need cash to close the gap.
- Coverage. The rent has to cover the new payment by the lender's required ratio. Check it at the rate you can actually get, not at today's most optimistic quote.
- Seasoning and a lease. Many DSCR lenders want the property rented and owned for a period before they will size the loan on its new value. Ask the refinance lender for its rules before you close the bridge.
- Reserves. DSCR lenders commonly ask for several months of payments in reserve, after everything else the project has cost you.
And start the exit sixty to ninety days before maturity. If you are refinancing, that means applying with the long-term lender then, not in the final two weeks. If you are selling, the property should be staged, listed and marketed. Everything about a bridge loan rewards being early and punishes being late.
When a bridge is the right call
Yes
- A deal that will be gone before conventional underwriting finishes
- An auction or distressed sale with a hard close date
- A property that needs work before any long-term lender will look at it
- Permanent financing already in process but not funding for weeks
- Buying the next property before the last one has completed its sale
No
- You cannot carry interest-only payments for the full term
- The exit depends on the market improving
- You are using it because you do not qualify conventionally and have no plan to
- The margin is thin enough that points and interest eat it
- There is only one exit and no backup if it slips
Build the backup exit before you close, not after the first one wobbles. If the plan is to sell, know what the refinance would look like. If the plan is to refinance, know what the property would sell for. Investors who lose money on bridge loans usually had one plan and no second one.
Get your deal reviewed
Answer these and your deal goes to our lending partner's team, who will contact you about whether it is fundable and on what terms. By sending it you agree to your details being shared with them. Investment property only: our lending partners do not finance a home you will live in.
Got it.
Thank you. Your details are on their way to our lending partner's team, who will contact you shortly.
Bridge loan questions
What is a bridge loan in real estate?
Short-term financing, typically six to thirty-six months, used to close on a property before permanent financing is in place or before another property sells. It is interest-only, secured against the property, and underwritten on the property and your exit as well as on you.
How much do bridge loans cost in 2026?
Market bridge rates run roughly 8% to 14%, with most investors paying about 9% to 12%, plus 1 to 3 points. Through our lending partners, standard pricing starts at 12.99% plus 2.99 points; 10.99% plus 1.99 points is loyalty pricing for borrowers who have paid off two loans with the lending partner in good standing.
How fast can a bridge loan close?
Faster than a conventional mortgage, because there is less paperwork on your income and more focus on the property. The timeline still depends on the appraisal, title and how quickly you supply documents, and the lender decides when it is ready to close. Have your entity, contract and exit plan ready on day one.
What credit score do I need for a bridge loan?
Many investor bridge programs set a minimum around 650 to 680. Our lending partners' minimum is 600. A higher score improves pricing, and it matters most when the property or the exit is marginal.
Can I refinance a bridge loan into a DSCR loan?
Yes, and it is the most common exit for buy-and-hold investors. Confirm first that the property will meet the DSCR lender's leverage, coverage and seasoning rules on the day the bridge matures. Our lending partners' DSCR program goes up to 80% of value on a rate-and-term refinance, and the lender sets any lower cash-out limit.
What happens if my bridge loan exit slips?
You can ask for an extension, which is at the lender's discretion and usually costs a fee plus continued interest. Start the exit sixty to ninety days before maturity so a slip is a delay rather than a crisis.
Sources
- RentalRealEstate.com, bridge loans (updated April 2026), 2026 bridge rate range, points, terms, leverage and credit minimums (accessed Oct 2026)
- Lev, CRE glossary: bridge loan, definition and typical 6 to 36 month term (accessed Oct 2026)
- BiggerPockets, 10 important terms to know when applying for a hard money loan, extension fees and prepayment terms on short-term loans (accessed Oct 2026)
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.