What Is a Bridge Loan?
A bridge loan is short-term debt (12–36 months) used to acquire, reposition, or stabilize a property until permanent financing or sale is available. Bridge lenders accept lower DSCR and looser-stabilized assets in exchange for higher coupons, fees, and prepayment flexibility.
The Fees That Inflate Bridge Cost
- Origination Fee: 1–3% of loan, paid at close
- Exit Fee: 0.5–2% of loan, paid at payoff
- Interest Reserve: if non-stabilized, lender funds 6–18 months of interest from the loan
- Extension Fee: 0.5–1% per extension option
- Legal & Closing: $25K–$75K typical
When Bridge Beats Permanent
Bridge is the right tool when (a) the asset needs renovation or lease-up before it can support permanent debt, (b) you need to close fast and refinance later, or (c) you're executing a value-add plan with a clear 18–36 month exit.
Pair this with the LTC Calculator, the Yield-on-Cost Calculator, and the Refinance Analyzer to model the bridge-to-perm transition.
Rate & Lending DisclosureInterest rates, loan terms, leverage levels, and pricing references shown on this page are estimates only, based on current Florida commercial real estate market conditions and lender feedback as of the page's last update. They are
not commitments to lend, are not loan approvals or pre-qualifications, and do not guarantee any specific loan terms or that financing will be available to any particular borrower or property. Actual interest rates, fees, leverage, amortization, prepayment terms, and other loan terms depend on borrower qualifications (credit, net worth, liquidity, experience), property characteristics, lender-specific underwriting requirements, third-party reports, and market conditions at the time of application. All loans are subject to lender credit approval, underwriting, and applicable federal, state, and local lending regulations. Linton Global Solutions is a Florida-licensed commercial real estate brokerage (FL Broker #BK703722); it is
not a lender. Financing is sourced through third-party lender relationships, and final loan terms are determined by the originating lender. This page does not constitute consumer credit advertising under Federal Reserve Board
Regulation Z (12 CFR Part 1026) and is intended for informational purposes only for commercial real estate professionals, investors, and owners considering commercial mortgage financing. Past loan terms or transactions do not guarantee future results.