Estimate your available bridge financing from your equity, plus the interest-only payment and total cost.
A bridge loanis short-term financing that “bridges” the gap between buying a new property and freeing up cash from one you already own. Investors use it to move fast on a new deal before selling or refinancing an existing property. It’s usually interest-only, sized off the equity in the departing property, and repaid in a lump sum when that property sells or refinances.
Bridge lenders size the loan off your equity — typically up to a combined 70–80% of the departing property’s value, minus what you still owe:
Max Bridge = (Value × Max LTV) − Mortgage Balance
Worked example: a $500,000 property with a $250,000 balance at 80% LTV gives $500,000 × 80% − $250,000 = $150,000of bridge funds. At 10% interest-only that’s about $1,250/month, and with 2 points the total cost over a 12-month term is roughly $18,000.
A bridge loan and a hard money loan are both short-term and interest-only; “bridge” usually emphasizes the buy-before-you-sell use case and is often secured by the departing property. A HELOC is a revolving line against your equity that you can draw and repay; a bridge loan is a lump-sum, fixed-term loan. Match the tool to your timeline and exit.
Because a bridge loan comes due quickly, you need a clear exit — selling the departing property or refinancing into long-term financing. When you’re ready, get matched with bridge and investor-friendly lenders, and if you’ll refinance, compare a cash-out refinance.
Get matched with lenders who specialize in investment property financing. No obligation, no credit check.
Get MatchedA bridge loan is short-term financing that bridges the gap between buying a new property and selling or refinancing one you already own. It's typically interest-only, secured by the departing property, and repaid in a lump sum at sale or refinance.
Lenders size a bridge loan off your equity — usually up to a combined 70 to 80% of the departing property's value, minus your current mortgage balance. For example, a $500,000 property with a $250,000 balance at 80% LTV supports about $150,000 of bridge funds.
Most bridge loans are interest-only during the short term, so the monthly payment is the loan amount times the annual rate divided by 12. You also pay upfront points, and the principal is due in full when the departing property sells or refinances.
Both are short-term and interest-only. 'Bridge' usually emphasizes the buy-before-you-sell use case and is often secured by the property you're leaving, while 'hard money' is commonly used for fix-and-flip acquisitions. The cost structure — rate plus points — is similar.
Bridge loans usually carry higher rates than a standard mortgage plus a point or two upfront, with short terms — often 6 to 12 months. Exact pricing varies by lender, your equity, and the deal.
Free hard money loan calculator. Estimate your interest-only monthly payment, points, and total cost of capital for a fix-and-flip or bridge loan.
Free real estate deal analyzer. Enter price, rehab, financing, rent, and expenses to instantly see cash flow, cap rate, cash-on-cash return, DSCR, GRM, and total cash needed.
Calculate the debt service coverage ratio for any investment property. Enter rental income and loan details to see if your property meets lender DSCR requirements and qualifies for investor financing.