Bridge loans are short-term, solution-driven financing designed to “bridge the gap” between where you are today and your long-term or permanent financing. They’re commonly used when you need to secure a new property or unlock equity quickly, but your existing property hasn’t sold yet or your take-out financing is not ready. In real estate, a bridge loan can provide immediate capital to acquire, refinance, or stabilize a property while you work toward your exit strategy—such as sale, refinance into a longer-term loan, or completion of a value-add business plan.

These loans are typically secured by real estate, carry higher interest rates than conventional long-term mortgages, and run on shorter terms—often from about 6 to 18 months, sometimes up to a couple of years depending on the lender and deal profile. Because timing is critical, bridge financing is often offered by private or specialty lenders that can underwrite based on collateral value, equity position, and the strength of the exit, rather than full traditional documentation alone, allowing for faster approvals and closings in competitive or time-sensitive situations