Stabilized Bridge Loan

Last updated: October 25, 2024

*Hard money bridge loans for turnkey properties -- strictly for real estate investors.*

What is a stabilized bridge loan?

A stabilized bridge loan is a short term interest-only loan for the purchase or refinance of move-in ready ("turnkey") residential real estate.

Why use a stabilized bridge loan?

Real estate investors use stabilized bridge loans for the following reasons:

• Need to purchase a turnkey rental property fast, not enough time for a DSCR loan.
• Need to purchase a turnkey property fast with the exit strategy to sell the property for a profit.
• Need to refinance a hard money loan for a completed rehab project with the exit strategy to sell the property.
• Need to refinance a hard money loan for a completed rehab project with the exit strategy to refinance into a DSCR loan.
• Need to refinance a property purchased with cash with the exit strategy to sell the property.
• Need to refinance a property purchased with cash with the exit strategy to rent and refinance the property with a DSCR loan

Stabilized bridge loan guidelines

Component	Guidelines
Max LTV (as is)	70%
Max LTC	85% (only applies if refi and owned less than 6 months)
Interest rate	get instant quote, term sheet and pre-approval
Points	1.5% (loans greater than $200,000), 2% (loans less than $200,000)
Lender fees	$1,425 (legal, doc prep, underwriting)
Min loan amount	$75,000
Min credit score	660
Term	12 months (standard), 18 months (by exception)
Eligible property types	1-4 unit residential
Extensions	up to 6 months (1% fee for first 3 months, 1.5% fee for second 3 months)
Structure	interest only
Borrowing entity	LLC, Corporation (personal name not allowed)
Personal guarantee	Yes (does not report to personal credit or affect DTI)