Bridge Loan New York

Last Updated: April 30, 2025

At OfferMarket, we’re dedicated to helping you grow lasting wealth through real estate investing. As part of our commitment, we offer a fully integrated platform that powers your investment journey with:

💰 Customized private lending solutions
☂️ Access to highly competitive insurance rates
🏚️ Exclusive access to off-market property deals

Our New York Bridge Loan program delivers dependable, fast, and affordable financing options for purchasing and improving 1–4 unit residential investment properties across the Empire State.

Whether your plan is to renovate and flip for profit, or hold and refinance into a DSCR loan, we’re here to help you execute your strategy and succeed.

Let’s dive into everything you need to know about the New York Bridge Loan Program!

What is a Bridge Loan?

A bridge loan provides flexible, short-term capital to fill the gap before securing long-term financing. It gives real estate investors in New York the freedom to buy and renovate properties without locking up personal funds.

Common Bridge Loan Scenarios

For real estate investors throughout New York, bridge loans are often the perfect solution for scenarios such as:

• Acquiring and renovating distressed properties: Perfect when you need financing for both the purchase and rehab of a fixer-upper, without tying up your own liquidity.

• Cash-out refinancing after a cash purchase: After snagging a property off-market with cash, use a bridge loan to access equity and fund renovations.

• Refinancing an active rehab project: If your current lender is requiring repayment but the work isn't yet complete, a bridge loan can buy you more time and capital.

• Purchasing undervalued properties without rehab: Ideal for investors looking to quickly flip properties purchased below market value, with no renovations necessary.

• Refinancing a cash buy with no improvements needed: Unlock equity on a discounted property you purchased and plan to sell.

• Refinancing post-renovation: Once your rehab is finished, a bridge loan can give you extra time to sell or refinance into a rental loan.

In the investment world, bridge loans are often referred to interchangeably as “hard money loans” or “fix and flip loans” — and these terms are commonly used among private lenders and real estate investors.

How it Works

Our New York bridge loan is built around two core components designed to maximize flexibility for investors:

• Initial Advance: The portion of your total funding dedicated to purchasing the property. This amount is wired straight to the title company at closing.

• Construction Holdback: Funds reserved to finance your renovation work, disbursed to you through reimbursement draws as your project progresses.

This structure offers unmatched versatility. Need only renovation funds? Use just the construction holdback. Focused solely on acquisition with no renovations planned? You can rely solely on the initial advance.

Most investors in New York combine both the initial advance and construction holdback to stretch their investment dollars and keep more cash in hand. Others might prefer to finance their own rehab out-of-pocket or simply purchase and resell without renovations.

Some New York investors even buy properties with cash and later tap into the construction holdback to cover 100% of their rehab expenses. With OfferMarket’s New York Bridge Loan, your financing adapts to your project — however you need it.

Whether you aim to flip the property for immediate profit or refinance into a long-term rental loan like a DSCR loan, we make it easy. And if you're undecided about your exit strategy when you start, that's fine — the program is designed with flexibility in mind.

Real estate investing in New York often demands nimble strategies. You might start with a BRRRR plan (Buy, Rehab, Rent, Refinance, Repeat) but pivot to a flip if rental demand softens. Or if the sales market cools unexpectedly, renting and refinancing could become the smarter move.

Choosing investments that allow multiple exit strategies can dramatically lower your risk and help you stay ahead in dynamic market conditions.

Who Typically Uses Bridge Loans?

Across New York, a wide range of real estate investors turn to bridge loans to fund their projects:

• Fix-and-flip investors: Renovators looking to buy, upgrade, and quickly sell properties for profit.

• Buy-and-hold investors: Real estate entrepreneurs using the BRRRR method to build rental portfolios.

Want to optimize your rental investments even further? Explore our Fix and Rent bundle — pairing a New York bridge loan for acquisition and renovation with a discounted DSCR loan for your refinance.

We’ve seen many of our successful New York clients combine strategies, choosing to flip certain properties while retaining others for long-term rental income, based on project results and evolving market opportunities.

New York Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, we prioritize your success as a New York real estate investor. Our goal is to help you build lasting wealth while minimizing your exposure to unnecessary risks.

Thanks to our thorough underwriting process, less than 0.5% of all loans we've originated have required foreclosure — one of the best default rates in the private lending sector.

We aim to steer you away from risky projects that could jeopardize your capital. From experience, we know that first-time or low-experience investors who take on heavy or extensive rehabs often face the most challenges, such as project delays, unforeseen expenses, or unfavorable market changes.

Especially in times of economic uncertainty, careful project selection and conservative planning are crucial.

As your New York bridge loan partner, OfferMarket serves as both a lender and a trusted advisor, helping you build your real estate business safely and sustainably.

To support responsible investing, we employ a structured rehab scope classification system, ensuring eligibility based on the project's complexity and your experience level.

Initial Advance: How It’s Determined

The initial advance — your New York bridge loan’s portion used for acquisition — depends on several important borrower-specific and project-specific factors:

• Number of investment properties owned in the past 24 months

• Number of similar rehab projects successfully completed in the past 5 years

• Minimum credit score of 680 (720+ preferred for stronger terms)

We also offer enhanced leverage for New York investors who are:

• Licensed Realtors

• Licensed General Contractors

• Licensed Professional Engineers

Important Note: If your purchase price is greater than the "As Is" value from our appraisal or in-house valuation, your initial advance will be calculated based on the As Is value, not the purchase price.

If you're planning to sell the property, we require a projected minimum gross margin of 30% and at least $15,000 in profit.

If you plan to rent and refinance, your project’s DSCR (Debt Service Coverage Ratio) after repairs must be no less than 1.1.

Want to sharpen your numbers? Be sure to take advantage of our Fix and Flip Calculator and DSCR Calculator — designed to help New York investors confidently analyze deals.

Properties located in rural areas may face restricted initial advances and require a minimum experience level of three completed projects.

Experience-Based Tiers

Initial Advance by Tier

Initial Advance Adjustments

Rehab Scope Classification

*In "lopsided deals," where the rehab budget is larger than the purchase price or As Is value, additional limitations apply — see LTFC Limits below.

Rehab Scope Eligibility

Your eligibility for different levels of rehab in New York depends on your experience tier. Our focus is to encourage manageable projects that can be completed efficiently — minimizing costly mistakes.

New York investors newer to the field are encouraged to focus on light and moderate rehabs to avoid complications and protect returns.

LTARV Limits

Your maximum Loan-To-After-Repair-Value (LTARV) is determined by both your experience tier and the type of rehab you're undertaking:

Staying within these LTARV boundaries protects your investment by ensuring the deal is properly capitalized.

LTFC Limits (Loan-To-Full-Cost)

When it comes to extensive rehabs in New York — where the construction budget surpasses the purchase price — we use a Loan-To-Full-Cost (LTFC) cap to maintain financial discipline.

Example:
If you're an experienced New York investor working on an extensive rehab, you can finance up to 90% of your full project cost — leaving a 10% equity investment from your side.

This structure ensures you stay invested in the project's success, especially for higher-risk, major renovations.

Example 1: New Investor with No Prior Experience

• Purchase price: $100,000

• Experience tier: 1 (no completed similar projects)

• Credit score: 695

• Rehab budget: $24,000

• After Repair Value (ARV): $150,000

• Initial advance: $75,000 (75% of purchase price)

• Construction holdback: $24,000

• Total loan amount: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest accrual: Full boat (interest charged on the total loan amount)

Example 2: New Investor, Excellent Credit

• Purchase price: $100,000

• Experience tier: 1 (no completed similar projects)

• Credit score: 750

• Rehab budget: $24,000

• After Repair Value (ARV): $150,000

• Initial advance: $80,000 (80% of purchase price)

• Construction holdback: $24,000

• Total loan amount: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest accrual: As disbursed (interest charged only on drawn amounts)

Example 3: Experienced Investor (5 Completed Projects)

• Purchase price: $100,000

• Experience tier: 4 (5 completed similar projects)

• Credit score: 750

• Rehab budget: $20,000

• After Repair Value (ARV): $150,000

• Initial advance: $90,000 (90% of purchase price)

• Construction holdback: $20,000

• Total loan amount: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest accrual: As disbursed

Refinance: Using As Is Value Instead of Cost Basis for Initial Advance

In most cases, our New York bridge loan underwriting is based on your cost basis — the sum of your purchase price and any existing rehab costs. This ensures you retain strong equity in your investment.

However, for seasoned projects that have appreciated and been held for at least three years, we may offer funding based on the property's current As Is value if certain conditions are met:

Refinance Eligibility Requirements:

• Property is habitable (C4 condition or better)

• Minimum seasoning of 3 years

• No recent loan defaults, penalties, or late fees

• Borrower credit score of at least 680

• Investor experience tier 3 or higher (at least 4 completed projects)

• Comparable sales support the higher valuation

This provides an opportunity for New York investors to leverage appreciated assets more efficiently.

Transactions Involving Wholesalers and Assignment Fees

If your New York bridge loan involves an assignment fee or price markup by a wholesaler, here’s how we handle it:

We allow assignment fees up to 20% above the original purchase price when calculating your cost basis.

Example:

You’ll need to provide:

• Full contract chain (A-B, B-C)

• Wholesaler’s operating agreement

• Proof the deal is off-market (not MLS-listed)

This safeguards the quality of bridge loan New York transactions while offering fair flexibility.

Construction Holdback

The construction holdback on your New York bridge loan is specifically reserved for your renovation work.

Funds are disbursed as you make verifiable progress, using an easy, app-based draw process.

If your total loan amount is $100,000 or higher, you only pay interest on funds that have actually been drawn — a smart way to protect your liquidity during your New York rehab project.

Appraisal and In-House Valuation

Every New York bridge loan requires a property valuation — and we offer flexible options:

• Interior Appraisal

• Exterior-Only Appraisal (where eligible)

• In-House Valuation (for qualifying borrowers)

Eligibility for In-House Valuation

Important: OfferMarket reserves the right to require a third-party appraisal even if you meet in-house valuation criteria.

Exterior Appraisal Guidelines

Exterior-only appraisals may be acceptable for New York property acquisitions involving:

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

Appraisals must be dated within 120 days of closing. If older than 120 days but within 179 days, a recertification is necessary.

Interior Appraisal Guidelines

In any other cases not fitting the exterior appraisal model, a full interior appraisal will be required.

We manage the appraisal order directly through an approved Appraisal Management Company (AMC). Appraisal invoices must be paid before processing can proceed.

Appraisal Transfer Policy

Already have an appraisal from a different lender? You might be able to transfer it for your New York bridge loan — if:

• The appraisal was ordered through an approved AMC

• It’s less than 180 days old at the time of settlement

• If 120–179 days old, it must be recertified

• The transferring lender provides the signed transfer letter confirming compliance with Appraiser Independence Requirements (AIR), the PDF and XML appraisal files, and a paid invoice

Scenario: Stabilized Bridge Loan

If your New York investment property is stabilized — meaning it’s in solid condition with no major repairs needed and carries an appraisal rating of C4 or better — you may qualify for a stabilized bridge loan.

In these cases, we can finance up to 75% of the current As Is value without including a rehab budget. This option is ideal for properties that are already rent-ready or market-ready.

Key Loan Details

Extensions

New York bridge loans are structured to support projects that complete quickly, usually within 12 to 24 months. However, life and markets are unpredictable.

If needed, loan extensions are available — but we strongly encourage strategic project planning to minimize extension risks and extra costs.

Key Risks That May Lead to Extension Needs

• Working with inexperienced general contractors

• Selecting overly aggressive rehab scopes

• Investing in areas with slow zoning or permitting processes

• Delays accessing the property (such as inherited tenants or eviction issues)

• Not having a dual exit strategy (flip or refinance)

By mitigating these risks, you can greatly reduce your likelihood of needing an extension on your New York bridge loan.

Extension Limits

Extensions are typically offered in 3-month or 6-month increments, depending on your project’s needs.

Extension Terms and Fees

Extension fees are added to your payoff balance and must be planned for in your project budgeting.

Extension Prerequisites

Before approving any loan extension, OfferMarket requires verification that your builders risk insurance remains active for the full extended period.

This ensures continued protection for both you and your New York real estate asset.

Ineligible Property Types

Certain types of properties are outside the scope of financing under our New York Bridge Loan Program. These include:

• Mixed-use properties

• Multifamily properties with 5 or more units

• Condotel (condo hotel) units

• Cooperative housing (co-ops)

• Mobile or manufactured homes

• Commercial properties (retail, office, industrial, etc.)

• Cabins or log homes

• Properties tied to oil or gas leases

• Operating farms, ranches, or orchards

• Seasonal homes or vacation rentals

• Unique, exotic, or luxury estates

• Properties located on dirt or unpaved roads

These exclusions help us maintain a sharp focus on financing traditional 1–4 unit residential investment properties across New York.

Exception Scenarios

In some situations, exceptions to our standard guidelines may be considered. Examples include:

• Credit scores between 660 and 679

• Leasehold properties (ground rent arrangements)

• Single-family homes measuring 500–699 square feet

• 2–4 unit properties with smaller unit sizes (400–499 square feet)

• Funding initial advances based on an As Is value greater than cost basis

• Non-arm’s length transactions

• Financed interest payments

Each exception request is reviewed carefully to ensure responsible lending standards are upheld.

Borrower and Guarantor Requirements

We have clear eligibility criteria for borrowers and guarantors under the New York Bridge Loan Program to support positive project outcomes:

Our aim is to work with responsible investors who have the financial foundation to succeed in their New York projects.

Liquidity Verification

We verify liquidity to ensure you have enough financial backing to complete your New York real estate project. Accepted sources include:

• Personal bank accounts

• Business bank accounts (including the borrowing entity)

• Brokerage accounts (personal or business)

• Retirement accounts (subject to 50% reduction for access restrictions)

You are not required to maintain a business account, but doing so can simplify project management.
Liquidity verification involves reviewing the two most recent statements for each account.
No account seasoning is required — and large deposits may require a Letter of Explanation (LOE).

Credit and Background Items

Our underwriting process includes a full review of both credit and background for New York bridge loan applicants.

Credit Evaluation:

• If three credit scores are returned, the middle score is used.

• If two scores are returned, the lower score is used.

• Lack of mortgage tradelines or fewer than five total tradelines may trigger interest reserve requirements.

Background Standards

Interest Reserves

In some cases, OfferMarket collects interest reserves at closing to ensure smooth operations throughout your New York project.

Interest reserves are drawn down to cover monthly interest obligations before requiring payments from you.

Financed Interest Payments

For eligible New York investors, we offer financed interest payments — meaning no monthly payments are due during the loan term.

How It Works:

• Instead of making monthly payments, interest accrues and is added to the loan balance at payoff.

Example:

• Loan amount: $100,000

• Interest rate: 12% annually

• Months held: 9

• Accrued interest: $9,000

At payoff:

• Principal: $100,000

• Accrued interest: $9,000

This option helps preserve your cash flow throughout the project.

Property Sourcing Guidelines

To maintain deal quality, OfferMarket follows these sourcing guidelines for New York bridge loans:

• New market transactions require either a General Contractor (GC) agreement or a Letter of Explanation stating why a GC isn’t needed.

• Wholesale deals, price run-ups, or non-arm’s length transactions require additional documentation.

• For heavy condo renovations or major conversions, architectural or engineering documentation may be requested.

Submission Package Must Include:

• Purchase contract

• Settlement statements

• Payoff letters (for refinances)

• Track record documentation

• Borrowing entity documentation (Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9)

Bridge Loan Insurance Guidelines

Proper insurance is essential to protect both your investment and your New York bridge loan. You must maintain Builders Risk Insurance or Fix and Flip Insurance throughout the loan term.

This insurance covers:

• The property itself (for damage or loss)

• You as the investor (for liability during renovation)

Insurance Policy Requirements

💡 Pro Tip: Once you take possession of your New York investment property, promptly install smoke detectors, locks, and security cameras to satisfy safety standards and avoid insurance claim issues.

Frequently Asked Questions (FAQs)

What states does OfferMarket fund bridge loans?

OfferMarket funds bridge loans for 1–4 unit residential investment properties across most U.S. states — including New York.

Eligible states include:
Alabama, Arizona*, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada*, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota*, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota*, Tennessee, Texas, Utah, Vermont*, Virginia, Washington, Washington D.C., West Virginia, Wisconsin, and Wyoming.

(*) For certain states like Arizona, Nevada, North Dakota, South Dakota, and Vermont where licensing is required, OfferMarket serves as a referral source to licensed capital providers.

Can I have multiple bridge loans at the same time?

Yes! Many investors manage multiple active bridge loans with OfferMarket. However, we always review your liquidity, exposure, and project pace to make sure additional loans won't overextend you.

Are bridge loans considered commercial loans?

Absolutely. Bridge loans are classified as business-purpose commercial loans. They are issued to your business entity (LLC or Corporation), not to you personally. They are strictly for non-owner-occupied real estate investment projects — not for consumer or personal use.

What is the minimum loan amount for a New York bridge loan?

The minimum bridge loan amount is $25,000.

What types of properties qualify for New York bridge loans?

Eligible properties include:

• Non-owner occupied single-family homes

• Townhomes

• Warrantable condominiums

• Small multifamily properties (2–4 units)

• Planned Unit Developments (PUDs)

Mixed-use buildings, large multifamily (5+ units), and other commercial assets are not eligible under this program, but may qualify under other OfferMarket products.

How is Loan-to-Value (LTV) calculated?

We calculate two key ratios:

• LTV = Loan amount ÷ current As Is value.

• LTARV = Total loan amount (purchase + rehab funds) ÷ projected After Repair Value.

Your initial advance is based on the lower of either your purchase price or the appraised As Is value.

What credit score is needed for a New York bridge loan?

A minimum FICO score of 680 is required. Borrowers with scores between 660–679 may still be considered on an exception basis.

Credit score requirements apply to every personal guarantor listed on the loan.

Is prior real estate experience required?

No.
You do not need prior investment experience to qualify for a New York bridge loan.
However, investors with successful rehab track records may qualify for higher leverage tiers.

Does wholesaling count toward experience?

No.
Wholesaling transactions do not count toward your experience level. Only projects where you personally funded and completed renovations will qualify.

What documentation is needed for a New York bridge loan?

For Purchases:

For Refinances

Are there special requirements for loans over $1 million?

Glossary of Key Terms

Instant New York Bridge Loan Quote

OfferMarket Capital LLC proudly supports real estate investors across New York with premium bridge loans and DSCR loan programs.
We are committed to helping you scale your portfolio, boost returns, and build enduring wealth.

Thousands of investors choose OfferMarket for:

💰 Smart, customized private lending solutions
☂️ Insurance rate shopping to protect your assets
🏚️ Priority access to exclusive off-market deals
💡 Deep market insights to inform your investment strategy

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Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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