Who Offers Bridge Loans?
Bridge loans are short term financing lifelines designed to "bridge" the gap between immediate needs and longer term funding, most famously used when you're buying a new property before selling the old one. But who actually hands out these quick turnaround loans? Let’s break it down:
Specialist Bridge Loan Lenders
These are the private pros of the short term lending world. Specialist lenders like Kiavi, CoreVest, and Park Place Finance focus exclusively on fast, flexible, asset backed loans. They're designed for speed, approving and funding deals in days, not months, and they cater heavily to real estate investors and buyers needing a competitive edge. If you’re after flexibility and speed (and are comfortable with slightly higher costs), this is your playground.
Banks and Credit Unions
While the big name banks often steer clear of bridge loans, regional and community banks still offer them. Institutions like Fremont Bank and Banner Bank have programs for homeowners looking to leap into their next property without waiting to sell. These options may have stricter credit and equity requirements, but they often come with more predictable rates and a touch of old-school reliability.
Hard Money Lenders
Need cash, like, yesterday? Hard money lenders might be your ticket. These are individuals or private groups who loan against real estate assets, with fewer hoops and faster approvals, often at the cost of much steeper interest rates. They're ideal when conventional routes are too slow or paperwork heavy. Just be ready: the speed comes with a premium price tag.
Mortgage Brokers and Advisers
Sometimes the best bridge loans aren’t visible from the outside. Many lenders only accept applications through mortgage brokers or specialist advisers, not directly from consumers. Brokers can unlock a wider range of options, negotiate terms on your behalf, and sometimes even land you rates and structures you wouldn't find going solo. When time and choice are critical, having a well connected broker is a serious advantage.
Examples of Bridge Loan Providers
When it comes to bridge loans, the right lender can make all the difference, turning a stressful property transition into a smooth power move. Here are some standout players:
Kiavi
Built for real estate investors who move fast and think big, Kiavi offers bridge loans with high leverage, up to 95% loan to cost and 80% after repair value (ARV). Their streamlined process and tech driven platform make them a favorite for buyers needing quick approvals and flexible funding.
Park Place Finance
Park Place specializes in quick close bridge loans, ideal for those who can’t (or don't want to) jump through traditional income verification hoops. Whether you’re flipping a house or securing an investment property, they focus on fast, flexible solutions designed around the property’s value, not your paperwork pile.
Fremont Bank
If you’re a homeowner looking for a transitional boost, Fremont Bank offers residential bridge loans with interest-only payments and terms up to 12 months. Available mainly in select regions like California’s Bay Area, they cater to homeowners who need time and breathing room between transactions.
JVM Lending
JVM Lending flips the script with bridge loans that feature no upfront fees and even no payments due until you sell your old property. Bonus: they sometimes offer guaranteed purchase programs, giving you even more confidence when making your next move.
Other Notable Lenders
Beyond the big names above, lenders like CoreVest, CrossCountry Mortgage, Knock, Banner Bank, Northpointe Bank, and PrimeLending offer a wide range of bridge loan products across residential and investment real estate markets. Each brings its own flavor to the table, from fast track investor financing to homeowner friendly terms.
How to Find the Best Bridge Loan Option
Bridge loans can be a powerful financial tool, but only if you pick the right one. Here's a step by step guide to locking in the best fit for your situation:
1. Determine Your Needs
Start by getting crystal clear about what you need.
- Are you buying a new primary home, funding an investment property, or covering a temporary business expense?
- How much do you need to borrow, and for how long?
- Do you have enough equity (typically 20% or more) in your current property to qualify?
Knowing these details upfront will narrow your search, and save you from falling into a loan that doesn’t fit.
2. Use a Mortgage Broker or Adviser
In the bridge loan world, brokers are your secret weapon.
- They have access to a broader lender network, including specialist lenders you can't approach directly.
- A good broker will not only find you competitive rates but also help navigate hidden fees and streamline the messy paperwork dance.
- Plus, they can spot red flags you might miss.
3. Compare Lenders and Offers
Don’t just jump at the first offer that lands in your inbox.
- Compare interest rates, arrangement fees (often around 2% of the loan), and closing costs.
- Look at speed of funding, flexibility on repayments (interest only or rolled up payments), and any unique perks like delayed payments or purchase guarantees.
- Bottom line: what looks cheaper upfront isn’t always cheaper over the life of the loan.
4. Check Lender Reputation and Experience
Who you borrow from matters just as much as what you borrow.
- Research the lender’s track record.
- Look for reviews, testimonials, case studies, anything that gives insight into how they treat borrowers.
- Bonus points if they have experience with your type of project (residential flips, move-up purchases, etc.).
5. Shop Around and Negotiate
There’s always room for a little (or a lot of) negotiation.
- Collect multiple offers, even if one seems perfect at first glance.
- Ask about early repayment penalties, payment deferral options, and fee reductions.
- Sometimes just asking the right questions can shave thousands off your total cost.
6. Consider Alternatives
Not every situation needs a bridge loan.
- If terms are too harsh or you don't qualify, alternatives like a home equity line of credit (HELOC), a home equity loan, or an 80-10-10 loan structure might work better.
- Each has its own pros and cons, but the key is staying flexible and outcome focused.
Final Thoughts
Bridge loans are like financial stepping stones, designed to help you move fast, seize opportunities, and stay agile when timing matters most. But not all bridge loans (or lenders) are created equal.
Choosing the right bridge loan comes down to understanding your needs, shopping smart, and working with trusted pros who have your back. Whether you tap into a specialist lender like Kiavi, explore regional banks like Fremont, or work through a savvy mortgage broker, the key is being strategic, not rushed.
Remember:
Define your goals clearly.
Compare multiple options carefully.
Negotiate terms fearlessly.
Always have a Plan B.
With the right prep and mindset, a bridge loan can be a smart, powerful tool to unlock your next move, without the stress of juggling old and new properties at the same time.
So step boldly, do your homework, and bridge your way to bigger opportunities.
