Loan Terms
Loan Terms: 1 to 3 years
Commercial Property Financing Options
Short-Term Bridge Loan Programs
NC helps borrowers explore short-term bridge financing solutions for commercial real estate transactions through available lending relationships.
Bridge Loan Overview
Short-Term Capital for Commercial Real Estate Transitions
Bridge Loans provide temporary financing for acquisitions, refinances, cash-out transactions, property improvements, stabilization efforts, and transitions to permanent financing or disposition.
Bridge financing provides short-term capital for commercial real estate transactions where borrowers need interim funding before securing permanent financing or completing a planned property transition.
These loans may be used for acquisitions, refinances, and cash-out transactions involving income-producing and owner-user properties. Bridge financing can also help borrowers improve, stabilize, or reposition properties before refinancing into a long-term loan structure or selling the asset.
Understanding Bridge Loans
What Is a Bridge Loan?
A Bridge Loan is a short-term financing option used when a borrower needs temporary capital before obtaining permanent financing or resolving an existing financial obligation.
These loans are commonly secured by real estate or other collateral and provide funding during a transition period, such as acquiring a property, improving an asset, refinancing an existing loan, or preparing for a future sale.
Bridge Loan terms are commonly structured for 1 to 3 years and generally carry higher interest rates than long-term financing options.
All financing is subject to approval, underwriting requirements, and applicable lending partner guidelines.
Eligible Property Types
Commercial Property Types Eligible for Bridge Financing
Financing may be considered for a wide range of commercial property types, including:
Multifamily
Manufactured Home Communities
Office
Retail
Mixed-Use
Industrial
R&D Flex
Self-Storage
Hotels and Motels
Other commercial property types
Financing Amounts
Loan Amounts from $300,000 to $100 Million+
Minimum Loan Amount
$300,000
Maximum Loan Amount
$100 Million+
Financing requests from approximately $300,000 to over $100MM may be considered through available lending relationships.
Program Features
Bridge Loan Program Structure
Rate Options
Fixed and variable rate options
Payment Structure
Interest-only payment structures
Underwriting Approach
Asset-based underwriting
Interest Rates
How Bridge Loan Rates Are Determined
Rates are typically based on Prime or SOFR.
Final pricing is determined by factors such as:
Loan-to-Value & Debt Service Coverage
Maximum Leverage & DSCR Requirements
Maximum Loan-to-Value (LTV)
Up to 75% LTV
Debt Service Coverage Ratio (DSCR)
Requirements vary based on the specific project.
Loan Terms & Requirements
Prepayment, Fees, Timeline & Appraisal
Prepayment Terms
Bridge Loans generally do not include a prepayment penalty.
Fees / Points
Typical points range from:
2% to 3%
Final fees may vary based on:
- Property location
- Loan amount
- Property type
- Property income
- Borrower financial profile
Closing Timeline
Typical closing timeframe:
7–21 days
Loans are generally completed within 7–21 days after the application has been submitted and all required documentation has been received.
Appraisal Requirements
A full appraisal is generally required unless the property has received an appraisal from a nationally recognized appraisal company within the previous 6 months.
Depending on the transaction and funding lender requirements, appraisal requirements may be waived in certain situations.
Purchase Funds Verification
Down Payment Verification for Acquisition Transactions
For acquisition transactions, down payment funds must be verified through bank statements or investment account statements.
Flexible Loan Structures
Structural Options & Additional Considerations
Available options may include:
- Recourse and non-recourse structures
- Additional income-producing property types reviewed on a case-by-case basis
Underwriting deposits may be required depending on the property location and transaction structure.
Loan terms and conditions may change prior to final loan commitment.
Reserve Requirements
Cash Reserve Expectations
Bridge Loans typically do not require cash reserves in most cases.
Explore Short-Term Bridge Financing
Whether you are acquiring a property, refinancing an existing loan, completing improvements, or preparing for a permanent financing transition, NC can help you explore short-term bridge financing solutions through a network of lending partners.
Contact NC to discuss your transaction and learn more about potential bridge financing options.
Request a Financing Consultation Today
Tell us about your project and explore available short-term bridge financing solutions for your commercial real estate goals.
Contact NC today to discuss your bridge financing needs.
Contact NC Today