Bridge Construction Loans
Short-term capital solutions that keep your construction project moving forward
What are bridge construction loans?
Bridge construction loans are short-term commercial loans designed to fill financing gaps during construction, renovation, or transitional phases of a real estate project. These loans are often used when permanent financing is not yet available, timing is critical, or a property needs improvements before qualifying for long-term funding. A bridge loan for construction may be used to acquire land, complete vertical construction, finish renovations, or stabilize a property before refinancing permanent debt.
Typical loan guidelines and borrower requirements
Loan-to-Cost / Loan-to-Value
Bridge construction loans typically fund 60%–80% of the total project cost or current value.
Debt Service Coverage
During construction, we focus on interest reserves, and the borrower’s ability to complete construction.
Credit & experience
Borrowers generally need a 660+ credit score. Development experience can strengthen approval.
Equity contribution
Most loans require 20%–35% equity, which may include land value, cash invested or verified project costs.
What makes bridge construction financing unique
Speed-focused underwriting
Bridge loans are designed for situations where timing matters more than perfect stabilization.
Future-value driven
Approval is based largely on the property’s completed or stabilized value, not just its current condition.
Flexible structure
Loan terms are customized around construction timelines, draw schedules, and exit strategies.
Clear exit planning
Every bridge to construction loan requires a defined repayment path, such as refinancing or sale.
Documents required for bridge construction loans
Project overview and loan request summary
Purchase agreement or land ownership documents
Construction budget and use-of-funds breakdown
Construction timeline and milestone schedule
Contractor agreement and experience profile
Plans, permits, or scope of work
Exit strategy explanation (refinance or sale)
Personal and business financial statements
Appraisal or as-complete valuation
Environmental review (Phase I, if required)
Entity documents (LLC agreement, K-1s)
Loan terms you can expect
Interest rates
Bridge construction loans carry higher rates than permanent financing due to short duration and development risk.
Loan structure
Funds may be disbursed upfront or through draws, depending on project stage and scope of work.
Term length
Most construction bridge loans range from 6 to 24 months, with extension options available in many cases.
Recourse vs. non-recourse
These loans are typically recourse, though limited carve-outs may apply depending on deal strength.
Exit flexibility
Loans are often structured to transition into long-term construction or permanent financing once milestones are met.
Closing timeline
Bridge loans for construction can close in as little as 10–30 days, depending on documentation readiness.
Eligible vs ineligible bridge construction projects
Ground-up construction nearing completion
Major renovation or repositioning projects
Properties awaiting permanent loan qualification
Transitional assets with value-add plans
No clear exit strategy
Unrealistic construction timelines or budgets
Inexperienced sponsors without strong partners
Properties with unresolved zoning or permitting issues
Simple step-by-step loan process
FAQ (Frequently Asked Questions)
When should I use a bridge loan for construction?
Bridge construction loans are ideal when a project needs fast capital to move forward, but permanent financing is not yet available due to incomplete construction or stabilization requirements.
Do bridge construction loans require an exit strategy?
Yes. A clear plan to repay the loan, such as refinancing, sale, or conversion to permanent financing, is essential for approval.
Can bridge loans fund both acquisition and construction?
In many cases, yes. Construction bridge loans can be structured to cover acquisition, construction costs, and carry expenses, depending on deal strength.
Are interest reserves included in bridge loans?
Often, yes. Interest reserves may be built into the loan to reduce cash outflow during construction.
How fast can a bridge construction loan close?
Depending on project readiness, bridge loans may close within 10–30 days, making them one of the fastest construction financing options available.
Move your construction project forward without delays
We help developers and investors secure bridge construction loans that provide speed, flexibility, and a clear path to permanent financing.