Bridge Loans

What's a Bridge Loan used for?

Designed for investors aiming to purchase, renovate, and sell properties quickly or to briefly access the equity you have established in an investment property. Bridge loans provide short-term financing solutions that are ideal for projects ranging from full-scale remodels to minor cosmetic updates.

Underwriting Requirements

Leverage

• Up to 100% of Renovation Costs

• Up to 90% LTC - Bridge with Renovation

• Up to 70% LTV for Cash-Out Refi

Property Types

• Non-owner occupied or Vacant

• 1-4 unit residential

• 5-10 unit apartment

• Condo, Townhome, Single-Family, Du/Tri/Quad - Plex

Loan Amounts

• Minimum $100,000

• Maximum $5,000,000

Minimum Credit Score

• 600

• No Credit Score - Max LTV 50%

Available Terms

• 12, 18 & 24 Months

• Interest Only

• Only Pay Interest on Used Funds

• Purchase

• Cash-Out Refinance

• Fix & Flip

• Construction Completion

Loan Types

Bridge loans aren't one-size-fits-all, but they're built for a wide range of investors. Here's who benefits most and when a bridge loan is the right tool for the job:

The Fix & Flip Investor

You've found the deal. The property needs work, cosmetic updates, a full gut renovation, or anything in between, and you need to move fast before someone else does. A fix and flip bridge loan lets you close quickly, fund your renovation draws as work is completed, and carry the property on interest-only payments until you're ready to sell.

Bridge loans for fix and flip cover up to 90% of your total project cost (purchase + renovation), with up to 100% of renovation costs funded through a draw schedule. You only pay interest on the funds you've actually drawn, not the full loan amount, which keeps your carrying costs lean while construction is underway.

Best for: Investors purchasing distressed or dated properties with a clear renovation scope and a defined exit through sale.

Use our Fix & Flip Calculator to model your total project cost, interest carry, and projected profit before you make an offer.

The Construction Completion Borrower

You're mid-project and the funding dried up. Maybe your original lender pulled back, costs ran over, or the deal structure changed. A construction completion bridge loan steps in to fund the remaining work and get the project across the finish line, whether your exit is a sale or a refinance into long-term financing.

This is one of the most underserved scenarios in investor lending. Most lenders won't touch a half-finished project. Cape Henry Capital works with borrowers who have a clear path to completion and a realistic exit strategy, even when the start of the deal didn't go as planned.

Best for: Investors who are mid-renovation or mid-construction and need capital to complete and exit the project.

Once your project is stabilized and leased, a DSCR Rental Property Loan can provide the long-term financing to hold or refinance out of the bridge.

The Short-Term Cash-Out Bridge Borrower

You have equity sitting in an investment property and you need to access it, fast. Maybe you're funding another deal, covering renovation costs on a different property, or bridging a gap while long-term financing is arranged. A short-term cash-out bridge loan lets you pull equity from a non-owner-occupied property at up to 70% LTV, with terms as short as 12 months.

Here's what most lenders won't tell you: this program is available even if the property is currently listed for sale. If you're carrying a property on the market and need liquidity now, without pulling it from listing, a cash-out bridge can provide that runway without forcing you to choose between access to capital and your exit strategy.

Best for: Investors who need short-term liquidity from existing equity, including properties actively listed for sale.

Not Sure Which Loan Fits Your Deal?

If your situation doesn't fit neatly into one of the boxes above, a mixed-use property, a portfolio deal, a unique exit strategy, that's exactly the kind of conversation we have every day. Get a free consultation and we'll tell you straight whether a bridge loan is the right move and what structure makes the most sense for your deal.

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Bridge Loan FAQs for Real Estate Investors

Can I get a bridge loan on a property that is currently listed for sale?

Yes. Cape Henry Capital offers short-term cash-out bridge loans on investment properties that are actively listed on the market. Most conventional lenders will not approve cash-out financing on a listed property, but our bridge program is specifically designed to give investors access to their equity without requiring them to pull the listing. If you have equity in a property and need liquidity while you wait for the right buyer, a cash-out bridge can provide that runway without forcing you to choose between capital and your exit strategy.

How are renovation draws handled on a fix and flip bridge loan?

Renovation funds are held in a dedicated draw account and released in stages as work is completed and verified. After each phase of construction is finished, an inspection is conducted to confirm progress, once approved, the next draw is released. You only pay interest on the funds that have been drawn to date, not the full renovation budget, which keeps your carrying costs as low as possible throughout the project. Draw schedules are structured at closing based on your renovation scope and contractor timeline.

What is the difference between a fix and flip loan and a construction completion loan?

A fix and flip loan funds both the purchase and the renovation of a property from the start, it's designed for investors who are acquiring a property that needs work and plan to sell after renovation. A construction completion loan is for projects that are already underway but need additional capital to finish. If your original funding fell short, costs ran over, or your lender exited mid-project, a construction completion bridge steps in to fund the remaining work and get the project to a sellable or refinanceable state. Both loan types share the same short-term, interest-only structure, the difference is where you are in the project timeline when you apply.

Can I use a bridge loan to finish a construction project that someone else started?

Yes, in many cases. Construction completion bridge loans are available for projects where work has already begun, even if you were not the original borrower or developer. Cape Henry Capital evaluates these deals based on the current state of the project, the remaining scope of work, the as-completed value of the property, and a realistic exit strategy, whether that's a sale or a refinance into permanent financing. Each deal is reviewed individually, so the best first step is a consultation to walk through the specifics of your project.

What credit score do I need to qualify for a bridge loan?

The minimum credit score for a standard bridge loan is 620. Borrowers without a credit score may still qualify under a no-score program with a maximum LTV of 50%. Credit score is one factor in the overall underwriting picture, the strength of the deal, the property value, your experience as an investor, and your exit strategy all play a role in the final approval and terms. If your credit profile is less than perfect but the deal is strong, it's worth having a conversation before assuming you won't qualify.

Can I qualify for a bridge loan as a first-time real estate investor?

Yes. First-time investors can qualify for a bridge loan with Cape Henry Capital. While experience is a factor that lenders weigh when structuring terms, it is not a hard requirement for approval. What matters most in a bridge loan decision is the strength of the deal itself, the purchase price relative to the after-repair value (ARV), the scope and cost of the renovation, the quality of your contractor, and the realism of your exit strategy.

For first-time investors, here's what strengthens your application:

• A strong deal with clear upside. If the numbers work, meaning there's sufficient spread between your total project cost and the projected ARV, that carries significant weight in the underwriting decision.

• A licensed, experienced contractor. If you're new to investing but your contractor has a proven track record of completing renovations on time and on budget, that reduces the execution risk lenders care about most.

• A defined exit strategy. Know whether you're selling or refinancing at the end of the project and be prepared to explain why that exit is realistic given the property, the market, and the timeline.

• Skin in the game. Bridge loans are leverage tools, having your own capital in the deal signals commitment and reduces lender risk, which can offset limited experience on your first deal.

If you're a first-time investor and unsure whether your deal qualifies, the best move is a straight conversation before you're under contract. Contact us and we'll tell you exactly where you stand.

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