Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Short-Term Program
Bridge Loans
Bridge loans are short-term, asset-based financing that focuses on the value of the collateral property rather than lengthy income verification. They are a pivotal solution for investors and business owners who need rapid capital for acquisition, lease-up, value-add or repositioning, with a clear path to permanent financing once the property stabilizes. Compare today’s commercial mortgage rates.
Get a Free QuoteBridge Loan Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| Interest-Only (Fixed or Variable) | 9.00% | Up to 80% |
- Asset-based, focused on the collateral property’s value
- Funded in days for time-sensitive deals
- For acquisition, lease-up, value-add and repositioning
- Fixed or variable rates, interest-only during the term
- A clear exit into permanent financing
- Higher leverage increases the rate
Rates are indicative and update with the market. Bridge pricing reflects the property’s transitional risk.
When to Use a Bridge Loan
Bridge loans are short-term, asset-based financing that focuses on the value of the collateral property rather than relying solely on the borrower’s credit and income. Because they are secured by the property and can be approved and funded within days, they are ideal for time-sensitive deals and transitional properties:
- Fast acquisitions that need to close quickly to win a deal
- Value-add and renovation projects that will increase net operating income
- Lease-up of properties with an un-stabilized rent roll
- Repositioning ahead of a refinance into permanent debt
What Drives Bridge Loan Pricing
Bridge pricing reflects the risk of the transition, so several factors move together:
- Interest rate, fixed or variable, plus origination, underwriting and closing fees.
- Loan-to-value: higher leverage increases lender risk and the rate, so a balanced LTV helps.
- Property value: because bridge loans are asset-based, lenders focus on the current market value of the collateral.
- Creditworthiness: stronger borrower profiles earn more competitive rates and terms.
Effective use of a bridge loan starts with an accurate valuation and a clear exit strategy, whether that is refinancing, selling, or completing a business plan, along with prudent management of the loan-to-value ratio.
Get Expert Guidance on Your Bridge Loan
With more than 30 years of experience, we help borrowers move quickly on transitional properties and, just as importantly, plan the exit into permanent financing. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“I needed a business mortgage for my small business. Stephen helped me the entire way and was always accessible. I highly recommend them.”
Jonathan M. · Seattle, WA“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DCGet Your Bridge Loan Quote
No cost, no obligation. Written answers within 48 hours on bridge loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up