Example Bridge Loan Terms for Multifamily and Commercial Property

Size: $1Million and up
Term: Typically, 6 months to 2 years (extension options available)

Interest Rates: Vary

Origination Fee: Typically, interest-only
‍Maximum LTV: Typically, up to 75% of cost (LTC) capped at 70% of the completed or stabilized value.

Advantages

• Loan amounts are determined by total project cost or completed value and not necessarily on income in-place or the as-is value, although in-place income can help secure better rates/terms.
• Fast closing process
• Capital often available when other portions of the credit market are locked up

Disadvantages

• Loans are short-term and generally need to be replaced inside 24 months