Transition Bridge Program

A transitionary bridge loan is a short-term loan used to acquire a property or refinance existing debt when permanent financing solutions are unavailable or impractical. Common scenarios include assets where the property’s income is unstable or in transition or even non-existent, or where the property needs extensive renovations. As private short-term loans, they carry higher interest rates and fees versus conventional, permanent financing (e.g., through a bank), but the rates are significantly less versus hard money bridge loans. Pricing is typically a spread (500 - 750 basis points) over Libor and depending on the scenario, leverage can be as high as 80% LTV. These loans are often structured as non-recourse to the sponsor and can typically be closed quickly. Some bridge loans can be structured with a conversion feature to convert to a permanent financing program as offered by that lender.

Program Overview

Loan Amount: $1,000,000 +
Term Length: Up to 5 years
Max LTV: Up to 80%
Amortization: Interest only
Interest Rate: Starting in the 6%'s
Closing Time: Under 30 days
Loan Use: Purchase, refinance, cash-out,
Recourse: Non-Recourse

Pros And Cons Of Fannie Mae
Small Balance Loans


  • Low Rates & Costs
  • High Leverage (80% LTV)
  • Long Amortizations (30-yrs)
  • Cash Out Available
  • Variety of fixed rate products
  • Non-recourse
  • Limited Personal Financial
  • Flexible Prepayment Options
  • Assumable & Streamlined


  • Conservative Underwriting
  • Sponsor Liquidity
  • Requirement
  • Longer Closing Process
  • Property Must be Stabilized

Pros and Cons


  • Low rate vs. hard money
  • Flexible terms
  • Quick closing
  • High leverage


  • Not for low quality assets
  • Sponsorship important

What Do I Need To Qualify

  • Action plan with exit strategy
  • Sufficient liquidity & experience

Disclaimer: These are general qualifications. Other information might be considered during your application

Eligible Properties



Mixed Use

Mixed Use









Other eligible properties include: Self-storage, senior housing, marinas, parking facilities, automotive

Common uses include: Acquisition, refinance, cash-out, renovation

Required Documents

Property Documents

  • Rent Roll
  • Leases
  • Income and Expense Statements
  • Renovation Costs / Project Schedule

If the property is investment real estate.

Personal Documents

  • Personal Financial Statement
  • Bio / Resume
  • Proof of cash to close

Business Documents

  • Business Plan / Exit Strategy
  • Current Profit & Loss Statement

If the property is occupied by an operating business that is the borrower

Is a Bridge or Hard Money Loan Right For Me?

Need to close fast?

A bridge or hard money loan might right for you.

Scenarios Meant For Bridge Loans

  • The property has low occupancy rates
  • The property has below market rents
  • The borrower’s credit profile needs improvement
  • Limited time to close
  • Incomplete ownership / project team in place

Required Documents

Personal Documents

  • Personal financial statement
  • Personal tax returns (3 yrs.)
  • Bio / Resume

Business Documents

  • Profit & loss statement
  • Balance sheet
  • Corp. tax returns (3 yrs)
  • Bank statements

Docs For Investment Real Estate

Stated Income Case Study

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Read the full case study

Fees and Costs

  • Origination Fee: Negotiable, but typically 1% of the loan amount
  • Exit Fee: Negotiable but typically no more than 1% of the loan amount

Prepayment Penalties

Negotiable, but typically the lender will require at least 6-12 months of interest.

Borrower Entity

Investment Real Estate: The borrower entity must be a single asset, single purpose entity. The typical structure is a limited liability company. The sponsors will typically form the entity in connection with the closing process, if not otherwise already formed.

Owner-Occupied Real Estate: The borrower entity is the operating business. The ultimate property owner may be a holding entity owned by the business or the business owner and it will be a co-borrower and the mortgagor.


Most transition bridge lenders provide non-recourse financing. Non-recourse availability will depend on a variety of factors, including risk, property type and location, loan amount, among others.

Third Party Reports

Property related reports, such as an appraisal, property condition report, and environmental screen, are usually required, but may be waived when time is limited.

Approval Process

1. Create loan request here.
2. Supply preliminary documents.
3. Select a loan program and product.
4. Receive preliminary approval.
5. Review and accept term sheet; remit application fee.
6. Lender completes underwriting and orders appraisal.
7. Loan approved. Final terms reviewed and accepted.
8. Loan closed and funded.