Bridge & Rehab · Business-purpose
Bridge & Rehab Loans: Short-Term Capital to Reposition a Property
REI Capital Consulting LLC is not a direct lender. Financing is provided by independent third-party lenders. Programs are subject to lender underwriting and approval.
Who this fits
- Buy-renovate-refinance (BRRRR-style) investors moving to a rental loan
- Investors who need to close fast and refinance later
- Refinancing a short-term loan that is coming due on a 1–4 unit property
- Qualifying cash-out to fund renovations on a property you own
- First-time borrowers using a lower-leverage program
Usually not a fit
- Owner-occupied homes
- Long-term holds with no plan to refinance or sell
- Ground-up new construction (see the ground-up page)
- Properties in markets the referenced programs exclude
How it works
How bridge & rehab financing typically works
Close
Fund the purchase or pay off existing debt, with any qualifying cash-out.
Rehab draws
Renovation funds are released in draws after completed work is verified.
Carry
Interest-only payments or an interest reserve, depending on the program.
Exit
Sell, or refinance into a long-term DSCR rental loan once stabilized.
What lenders typically review
- Purchase price or current value
- Rehab budget and scope
- After-repair value
- Experience (first-time programs may differ)
- Credit score and liquidity
- Exit plan and timing
Where it’s available
Availability depends on the program. The Realty Capital Financial bridge and rehab programs referenced here currently exclude North Dakota, South Dakota, Vermont, Puerto Rico, and Guam. The COGO Capital bridge program referenced here currently excludes Nevada, South Dakota, Utah, and Vermont.
Published lender examples
What one lender currently publishes
These are examples of parameters an independent lender publishes on its own website. They are not our terms, not offers, and they can change at any time. Final terms come only from the lender after underwriting.
| Published loan range | $100,000–$4 million |
|---|---|
| Credit | Minimum credit score around 660 |
| Loan-to-cost | Up to 90% of purchase price and up to 100% of rehab cost |
| ARV / completed-value limit | Total loan up to 75% of after-repair value |
| Term | 12 months |
| Interest structure | Interest reserves may be included |
| Experience | First-time borrowers may be eligible |
| Property types | Residential 1–4 unit |
| Not available in | ND, SD, VT, PR, GU |
| Also published | Initial rehab advance may be available |
| Also published | Square-footage additions may be allowed |
Example of currently published lender parameters only. Not an offer or commitment to lend. Terms may change without notice and depend on lender underwriting, borrower and property eligibility, and geographic availability. Values described with “up to,” “may,” or “around” depend on lender underwriting.
Source: Realty Capital Financial published program page. Information last reviewed .
| Credit | Minimum credit score around 660 |
|---|---|
| Loan-to-cost | Up to 75% loan-to-cost |
| ARV / completed-value limit | Up to 60% of after-repair value |
| Term | Minimum term around 9 months |
| Interest structure | Interest-only; no interest reserves unless there is a cash-out |
| Experience | Designed for borrowers without prior experience |
| Property types | Residential 1–4 unit |
| Not available in | ND, SD, VT, PR, GU |
| Also published | Lower leverage than the experienced-borrower program |
Example of currently published lender parameters only. Not an offer or commitment to lend. Terms may change without notice and depend on lender underwriting, borrower and property eligibility, and geographic availability. Values described with “up to,” “may,” or “around” depend on lender underwriting.
Source: Realty Capital Financial published program page. Information last reviewed .
| Published loan range | From about $50,000 |
|---|---|
| Credit | Lender-published minimum around 600; may vary by program |
| Loan-to-cost | Program-specific; based on cost and borrower profile |
| Loan-to-value | Program-specific; published maximum around 70% of value |
| Term | Commonly up to 12 months |
| Interest structure | Short-term; program-specific pricing |
| Experience | New and experienced investors considered; terms vary by experience |
| Property types | Non-owner-occupied single-family investment property |
| Not available in | NV, SD, UT, VT |
| Also published | Borrower must be a business entity |
| Also published | Non-owner-occupied investment property only |
Example of currently published lender parameters only. Not an offer or commitment to lend. Terms may change without notice and depend on lender underwriting, borrower and property eligibility, and geographic availability. Values described with “up to,” “may,” or “around” depend on lender underwriting.
Source: COGO Capital published program page. Information last reviewed .
Information last reviewed:
Bridge & Rehab questions
What is a bridge and rehab loan?
A bridge and rehab loan is short-term financing that carries an investor from acquisition or repositioning to a sale or long-term refinance. It can fund a purchase, a refinance, a qualifying cash-out, and renovation work released through draws. Some programs include interest reserves. Terms are usually measured in months, not years, and depend on lender underwriting.
How are rehab draws released?
Rehab funds are usually released in stages after work is completed and verified by an inspector or with photos. You typically pay for each phase first, then request reimbursement for the budget lines completed. Some programs offer an initial rehab advance at closing. Draw timing, fees, and documentation are set by the lender.
Can first-time borrowers get a bridge and rehab loan?
Some programs accept first-time borrowers. For example, one lender we reference publishes a separate first-time borrower bridge and rehab program with lower loan-to-cost and after-repair-value limits than its experienced-borrower version. Expect to bring more cash and show a clear budget and exit.
Can I take cash out with a bridge loan?
Some bridge programs allow qualifying cash-out on a property you already own, often to fund renovations or another acquisition. Lenders limit cash-out by value, use of funds, ownership seasoning, and credit. Whether cash-out is allowed, and how much, depends on the program and the lender’s underwriting.
Have a bridge & rehab deal?
Send the basic project details. We’ll review the scenario and identify potential next steps.
REI Capital Consulting LLC is not a direct lender. Financing is provided by independent third-party lenders. Programs are subject to lender underwriting and approval.