5 Best Bridge Loan Lenders In 2024

If you just stumbled upon a potentially profitable property for a house flip but lack the funds to procure it, a bridge loan can be the means to your end.

A bridge loan, also known as a swift or gap loan, is a short-term financing option that, true to its name, bridges the gap between snagging a new property and selling an existing one.

But where do you get one? We’ve shortlisted five of the best bridge loan lenders in 2024 that real estate investors can tap into to finance their investing endeavors.

• What Is Bridge Loan?
• Why Use A Bridge Loan?
• Kiavi
• New Silver
• Park Place Finance
• Nationwide Mortgage
• FK Capital Fund
• Bridge Loan Lender FAQs
• Final Thoughts: What’s the Best Bridge Loan Lender?

Ready to take your real estate investing to the next level? Learning about best bridge loan lenders is just the beginning. Schedule a FREE Strategy Session with us to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in your market. Don't miss out—take the next step toward maximizing your investment potential today!

 What Is A Bridge Loan?

A bridge loan is a short-term financing option that helps borrowers "bridge" the gap between the purchase of a new property and the sale of an existing one.

These loans are typically used in real estate transactions to provide temporary funding, allowing investors or homeowners to secure a property without waiting for long-term financing.

Bridge loans usually have higher interest rates but offer quick access to capital, making them ideal for time-sensitive projects like fix-and-flips.

 Why Use A Bridge Loan?

Bridge loans are ideal for real estate investors or homeowners who need quick access to funds.

They allow borrowers to secure financing for time-sensitive opportunities, such as purchasing a new property before selling an existing one or funding a fix-and-flip project.

With faster approval processes compared to traditional loans, bridge loans help avoid missed deals and provide flexibility for short-term financing needs.

While interest rates are higher, the speed and convenience often outweigh the cost for many investors.

Kiavi

 Kiavi, formerly Lending Homes, is a California-based digital lender with a track record of underwriting over $16 billion in loans. Initially a crowd-sourcing lender, Kiavi is now a private lender within the real estate industry, primarily funding residential real estate investments such as fix and flips,wholesale real estate properties., and offering residential bridge loan lenders services. Read on to discover their bridge loan terms.

Kiavi’s House Flipping & Bridge Loan Funding

Kiavi bridge loans are designed for real estate investors in need of quick access to capital for:

• New purchases: Kiavi bridge loans can cover the costs of purchasing and renovating various investment properties, including single-family homes and condos.
• Delayed and seasoned refinancing: House-flipping investors who’ve already purchased an investment property but are short on renovation funds can borrow against their home equity to finance rehabs.
• Resolving temporary cash flow issues: House-flipping investors experiencing a liquidity crunch but anticipating a significant cash inflow shortly can borrow Kiavi’s bridge loans to address their cash flow challenges.

How Much Can You Borrow With a Kiavi Bridge Loan?

With a Kiavi bridge loan, you can borrow up to 90% of the loan-to-cost (LTC) ratio plus 100% of rehab costs. This arrangement allows you to finance a significant portion of the overall project costs and the specific costs associated with renovating an investment property. Kiavi loan amounts range from $100K to $2.5 million, making them an ideal lender for real estate investors engaged in high-value property flipping investments.

Why Kiavi Is One of the Best Bridge Loans

Kiavi is one of the top bridge loan lenders because not only do they offer high loan-to-cost amounts, but they also have a streamlined loan approval process. As a digital lender, Kiavi uses technology to prequalify borrowers, conduct property appraisals, and process loans. Furthermore, the lender doesn’t require income or employment verification, facilitating quick access to capital and speeding up the processing timelines.

Beyond the efficient process, Kiavi doesn’t impose application fees, prepayment penalties, or exit points, resulting in reasonable overall loan costs. Moreover, Kiavi provides favorable loan repayment periods, ranging from 12, 18, to 24 months, a noteworthy feature considering most bridge loan lenders typically offer 6-12 months.

Read Also: Kiavi Lending & Funding Review

New Silver

New Silver, established in 2018 by Alex Shvayetsky and Kirill Bensonoff, is an online loan lender committed to improving local communities by streamlining capital access for real estate investors. They offer a suite of hard money loans, including multiple bridge loan options that real estate investors can tap into to access the necessary capital.

New Silver Bridge Loan Funding Options

New Silver bridge loans include:

• Fix and flip loans: These are loans for real estate investors who buy and rehabilitate properties. They’re also suitable for those looking to refinance a fix and flip. The minimum loanable amount is $100,000, while the maximum is $5,000,000 with a $ 24-month repayment period. Interest rates range between 10% and 12.75%, depending on the applied loan amount and project scope, while the origination fee is 1.875%.
• Rent loan: New Silver’s rent bridge loans are suitable for investors looking to acquire a stabilized rental property, enhance the value of an existing one, or refinance an existing debt. They come with a fixed mortgage rate of 7.5%, a 30-year term, a 2-3% origination fee, and an 80% LTV. The minimum loan amount is $150,000, while the maximum is $3,000,000.
• Ground up: This new Silver Bridge loan is for investors specializing in the construction and sale of new residential properties, specifically, 1-4 units, townhomes, and condos. Applicants can qualify for up to $5,000,000 if they have a minimum FICO score of 650. The loan finances 100% of construction costs and 80% of the after-repair value expenses and features an interest rate ranging from 10% to 13.25%.

Read Also: Free ARV Calculator: After Repair Value Estimator

Why is New Silver One of the Best Bridge Loans?

New Silver offers multiple bridge products, allowing investors with different portfolios to leverage the perks of a bridge loan. The lender also offers high loan amounts, ranging from $150,000 to $5,000,000, depending on the bridge loan an investor needs.

Their loan process is mainly done online, and they don’t require a hard credit pull. This means a speedy processing process and guaranteed approval even for investors with relatively low FICO.

Furthermore, New Silver offers discounts on repeat borrowers. The lender also provides an instant term sheet and proof of funds letter, which can prove incredibly handy when investors are short on cash flow but need to make an offer on a high-demand real estate property.

However, New Silver charges a prepayment penalty and origination fee on all their bridge loans.

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Park Place Finance

Park Place Finance is a direct private lender with 17 years of experience. They’ve closed on loans worth over $1 billion since their inception in 2006 and offer bridge loans countrywide, except in North Dakota, South Dakota, and Alaska.

Park Place Finance Bridge Loan Program

The Park Place Finance bridge loan program primarily targets real estate investors looking to secure fix and flip properties. Investors can also use their real estate bridge loan to refinance or cash-out refinance investment properties. Key features of Park Place Finance bridge loans include:

•  Prequalification takes a day, with closing in as few as 3-5 days
•  Designed exclusively for investment properties
•  In-house underwriting and in-house capital

Park Place Finance offers bridge loans ranging from $100,000 and $3,000,000, usually covering up to 75% of loan-to-purchase costs. For investors seeking to refinance an existing loan, the lender offers 70% loan to value and covers up to 65% of cash-out refinance costs.

Borrowers seeking flexible repayment options will find Park Place Finance suitable as the lender offers monthly, interest-only payments and doesn’t impose prepayment penalties. Loan terms include 6, 12, and 18 months, with bridge loan rates ranging between 10.99% and 12.99%. The minimum borrower credit score is 640.

Park Place Finance as one of the best bridge loan are tailored for investors specializing in urban and suburban property investment properties, including duplex, triplex, and quadplex units, single-family homes, and multi-family homes with 5+ units. The lender primarily underwrites the property’s value and doesn’t require income verification, debt ratio, or tax returns.

Notably, although there are no application or pre-payment penalty fees, Park Place charges a $1,495 document preparation fee, $535 legal fee, and $599-700 appraisal fees on its bridge loans, potentially inflating total loan costs.

Why Park Place Finance is One of the Best Bridge Loans

Park Place Finance boasts an in-house underwriting team and requires only basic documents, resulting in a quick bridge financing approval. This allows investors quick and convenient capital access. They also offer multiple repayment options, enabling investors with cash flow issues some ease in repaying. Furthermore, their bridge loans accommodate a diverse range of property types, allowing investors with different portfolios to leverage them for capital.

Nationwide Mortgage

Nationwide Mortgage, a renowned hard money lender based in San Jose, California, offers a diverse range of residential and investment property loans in California, Florida, Washington, and Virginia.

Nationwide Mortgage Private Money, Hard Money & Bridge Loans

Nationwide Mortgage bridge loans cater not only to fix and flip investors but also to subcontractors, realtors, and brokers. They also accommodate an extensive range of property types, including unconventional options like mismanaged rentals, apartments, and vacant properties.

The loans are equity-based, offering repayment terms spanning 1-10 years.

Another notable feature is that Nationwide Mortgage extends multiple vesting options including corporations, trusts, and LLCs.

Loanable bridge loan amounts start at $100,000 to $5,000,000, with points charged ranging between 2% to 5%. Borrowers should expect to pay 8%-13% interest contingent on the applied amount, credit score, and history. The maximum LTV is 75%, while the LTC is 80%. Nationwide Mortgage typically closes on bridge loans within 7 days.

Why Nationwide Mortgage Is One of the Best Bridge Loan Lenders

Nationwide Mortgage caters to a broad spectrum of investors. This lender also finances not just a wide range of properties but also some pretty unconventional ones, such as assisted living, mismanaged rentals, storage, mixed-use developments, churches, and even land.

They also offer multiple vesting options allowing borrowers to secure loans under the legal structure most suitable to their risk tolerance, long-term goals, and preferences. Their interest rates begin at a relatively low range of 8% and with no prepayment penalties, their loans are pretty affordable.

FK Capital Fund

FK Capital specializes in private hard money lending, with a primary focus on bridge loans and wholesale hard money loans. However, they do offer other residential and commercial real estate loans, and even facilitate trust deed investments in California.

FK Capital Bridge Loan Program

FK Capital bridge loans are specifically tailored for rehab investors and often require cash equity from the loan sponsor. The minimum loanable amount is $50,000, with interest rates starting at 8% and points charged averaging 2%. This lender offers loan terms of up to 36 months and a maximum loan-to-value ratio of 70%.

Why is FK Capital One of the Best Bridge Loan Lenders?

FK Capital stands out for offering bridge loans starting as low as $50,000. The low loan amounts allow beginner and small-scale investors to tap into their program for capital. With starting interest rates at 8%, this lender allows borrowers to maximize their funds without incurring high repayment costs.

Additionally, most customer reviews indicate that FK Capital offers smooth processing and superb services, reinforcing its reputation as a reliable and one of the best banks for bridge loans.

Read Also: How To Invest In Commercial Real Estate: A Beginner's Guide

Bridge Loan Lender FAQs

Check out answers to some of the most frequently asked questions on bridge loan lenders:

How Do Bridge Loan Lenders Work?

Although most bridge loan lenders don’t require physical appraisals and can process the loan online, they typically consider the borrower’s equity in the original property, their credit, and their debt-to-income ratio. They also offer loans worth 80% of the combined value of the two properties.

Are Bridge Loans Hard to Get?

No. Bridge loans are typically easy to get if you have at least a 20% line of credit in the current home, a decent credit score, and a good debt-to-income ratio. Some of the best commercial bridge loan lenders (for instance, those on our list) will even approve borrowers with a credit score as low as 650. However, requirements vary by lender.

What Are the Typical Interest Rates and Terms for Bridge Loans?

Bridge loans usually have higher interest rates compared to traditional loans, typically ranging from 8% to 12%. Loan terms are short, often 6 to 12 months, designed for temporary financing needs. Some lenders offer extensions if needed. These loans are interest-only with balloon payments at the end. The fast approval and flexibility make them attractive, but borrowers should be prepared for higher costs due to the short-term nature and risk involved.

How Do I Qualify for a Bridge Loan from the Best Lenders?

To qualify for a bridge loan, lenders prioritize the following:

• Equity: Having significant equity in your property is crucial.
• Creditworthiness: A good credit score helps, but it’s not always necessary.
• Exit Strategy: A clear repayment plan, like selling a property or refinancing, is essential.
• Collateral: Valuable real estate as collateral improves your chances and can lead to more favorable terms.

Are Bridge Loans Suitable for First-Time Homebuyers or Investors?

Bridge loans are generally not recommended for first-time homebuyers due to their higher costs and short repayment terms. However, they can be a useful tool for experienced investors needing quick financing to secure deals. Investors in fix-and-flip projects, for example, often use bridge loans to purchase and renovate properties quickly. First-time homebuyers should explore traditional loans with lower interest rates and longer repayment terms for more stability.

Final Thoughts: What’s the Best Bridge Loan Lender?

Thanks to bridge loans, securing funds to leverage lucrative real estate opportunities has never been easier. A lender like Kiavi allows every qualifying investor and homebuyer high loan-to-cost amounts, while Nationwide Mortgage caters to a wide range of properties, allowing investors with nearly all types of portfolios access to funds.

In contrast, FK Capital unlocks cash flow access to small-scale investors. Simply put, each player on our list of bridge loan companies that brings unique advantages to the table, ensuring you can find the right fit for your needs.

Ready to take your real estate investing to the next level? Learning about best bridge loan lenders is just the beginning. Schedule a FREE Strategy Session with us to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in your market. Don't miss out—take the next step toward maximizing your investment potential today!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.