What is a bridge loan?
A bridge loan is short-term real estate financing that provides capital for a property or project when timing matters — for example, closing on a new property before an existing one sells or before long-term financing is in place. KREC bridge loans run 6 to 24 months, start at 8.5%, go up to 75% LTV, and can close in 7 to 14 days.
Answered by the Key Real Estate Capital lending team · Updated August 2026
How it works
Bridge financing is asset-based. Instead of building a decision around lengthy personal income documentation, the lender underwrites the property's value and the borrower's exit strategy — the specific way the loan will be repaid, whether that is a sale or a refinance into longer-term financing.
Because the review is narrower and faster, a bridge loan can close in days rather than months. In exchange, the term is short and pricing sits above conventional mortgage rates. KREC bridge loans are interest-only options with no prepayment penalties, and cross-collateralization is available.
Key considerations
- The exit strategy is the core underwriting question — a clear, documented exit is required.
- Terms run 6 to 24 months, so the plan needs to be executable inside that window.
- Leverage reaches 75% LTV, with loan amounts from $100K to $5M.
- Minimum credit score is 620, and the property must be non-owner occupied.
- Title and property insurance are required, along with adequate cash reserves.
Who it may be for
Investors who need to close on a time-sensitive acquisition before conventional financing could be arranged.
Owners buying a replacement property before an existing property sells.
Borrowers holding a property that is not yet stabilized enough for permanent financing.
Related KREC financing options
Bridge Loans
Rates from 8.5%, $100K to $5M, 6 to 24-month terms, up to 75% LTV, closings in 7 to 14 days.
View bridge loans detailsFix & Flip Loans
For bridge situations that also include a renovation budget funded through draws.
View fix & flip loans detailsFrequently asked questions
Common follow-up questions about bridge loans.
Ready to talk through your deal?
Share the property and your plan, and a KREC loan specialist will outline the financing structures that fit.