When timing is everything, and a traditional lender is dragging its feet, investors turn to bridge loans—and for good reason. Whether you’re buying a flip, closing fast on an off-market deal, or just need temporary capital while arranging long-term financing, bridge loans give you speed, flexibility, and leverage.
At Happy Funds, we love bridge loans because they help investors win deals in competitive markets—and they work with nearly every exit strategy.
What Is a Bridge Loan?
A bridge loan is short-term financing used to “bridge” the gap between now and your long-term goal—whether that’s flipping the property, refinancing into a DSCR loan, or selling it after repairs. Most bridge loans have terms ranging from 6 to 24 months and are based more on the property’s value than your personal income.
In short: if the numbers make sense, you can close fast—even without perfect credit or tax returns.
Why Bridge Loans Are a Game-Changer for Investors
1. Fast Closings
Need to close in 7–10 days? No problem. Bridge loans skip the bank’s checklist and focus on what matters: property value, deal strength, and your experience.
2. No Income Docs or DTI Requirements
Bridge lenders don’t care about your W-2, DTI, or how many rentals you already own. If the property qualifies, the loan closes.
3. Perfect for Fix & Flips
Bridge loans are ideal for properties that need work and wouldn’t qualify for conventional financing. Buy, renovate, and sell—all with one short-term loan.
4. Flexible Exit Strategies
You can refinance, sell, or rent—it’s your call. As long as you pay off the loan by the end of the term, you’re in control of the exit.
5. Close in an LLC
Bridge loans are investor-friendly, which means you can purchase and hold in an entity for better asset protection and tax flexibility.
Real-World Scenario
You find a distressed duplex for $250,000 and need to close fast. It needs $50,000 in rehab and could sell for $400,000 after improvements. A bridge loan gives you $200,000 up front, and you bring $50,000 to the table.
No bank could close that fast. No conventional loan would touch it in its current condition. But with a bridge loan, you’re funded and closing in a week—before another investor even writes an offer.
Key Bridge Loan Terms to Know
- Loan Amounts: Typically 70–80% of purchase, plus rehab funds
- Terms: 6–24 months
- Interest Rates: Usually 9–12%
- Origination Fees: 1–3 points
- Prepayment Penalties: Often none—but check the term sheet
- Exit Plan Required: Know how you’ll pay it off (refi or sale)
Who Should Use Bridge Loans?
- Fix & flip investors
- Buyers purchasing under market value
- Landlords buying distressed properties to refinance later
- Buyers needing speed, flexibility, or temporary funding
- Real estate entrepreneurs chasing short deadlines
The Bottom Line
Bridge loans aren’t for everyone—but for serious investors, they’re a game-changer. You can move fast, fund properties that banks won’t touch, and scale your business with agility. At Happy Funds, we offer no-nonsense bridge loans designed to close quickly and help you win deals.
Got a flip, rehab, or fast-close opportunity?
Let’s run the numbers and get you funded.