Jaken Finance Group · Updated
Chicago bridge loans provide temporary financing for an investment property when the acquisition or refinance must happen before a longer-term loan or sale is ready. A credible exit is essential: identify the expected repayment source, what must happen first and how much cash you need if that event is delayed.
Jaken Finance Group serves Chicago and the collar counties from Hoffman Estates, Cook County. Bring the property address, purchase or payoff amount, current condition, occupancy, available liquidity and proposed exit. Submit a Chicago bridge scenario to start the review.
Chicago bridge loan terms
Published program ranges as of August 2026, checked September 6, 2026:
| Feature | Acquisition bridge program |
|---|---|
| Rate | 8.99%–13.5% interest-only |
| Purchase leverage | Up to 90% purchase price |
| Value limit | Varies by exit; subject to underwriting |
| Term | 12–24 months |
| Closing | 7–10 business days after borrower conditions are satisfied |
| Residential use | Non-owner-occupied investment property only |
| Possible exit | Approved refinance, property sale or another documented repayment source |
Purchase leverage is not total project LTC. A bridge offer based on the purchase price does not automatically fund a renovation budget. A fix-and-flip loan can include a rehab holdback, with its own cost and ARV limits. If your project includes structural work, an unfinished interior or a change in use, describe it fully so the program can be evaluated correctly.
Both bridge and fix-and-flip programs have the same published rate range. Do not assume that calling a loan “bridge” creates an interest saving. Compare the actual loan amount, interest basis, points, minimum interest, term and exit conditions. See the Illinois rate report and Chicago hard money overview.
Credit-flexible underwriting with no minimum FICO on select programs. Approval is collateral-first — driven by ARV, LTC, scope, liquidity, and exit strategy. We may pull credit to review trends, but FICO is not the primary approval driver. No appraisal required on select bridge and fix-and-flip programs for experienced sponsors with documented ARV comps. Standard programs use third-party valuation.Which Chicago situations can fit bridge financing?
| Situation | What the loan team needs to establish |
|---|---|
| Acquisition before a rental refinance | Current condition, intended leases, refinance requirements and expected payoff |
| Overlap between an investment-property sale and purchase | Supported sale proceeds, realistic sale timing and cash available if the sale is delayed |
| Existing loan approaching maturity | Current payoff, remaining work, title, equity and a credible new exit |
| Partner buyout or portfolio adjustment | Entity authority, the transaction purpose, existing liens and repayment source |
| Estate or auction acquisition | The exact interest being purchased, title status, contract conditions and closing deadline |
An auction bid does not guarantee that the property is ready for secured financing. A tax-lien purchase is different from purchasing a deeded property. Resolve the transaction structure and title requirements before assuming a bridge lender can meet the payment deadline.
A property with unfinished work may still require a construction or rehab structure. The decision depends on the actual condition and scope, not a universal dollar cutoff. Use Chicago fix-and-flip financing for a purchase-plus-rehab review or new construction financing for ground-up work.
Worked example: illustrative Near West Side two-flat bridge
This scenario is hypothetical. It is not a funded transaction, current market valuation or evidence of a completed refinance. Assume a $340,000 investment purchase, no rehab holdback, and an approved bridge of 70% of purchase price.
| Acquisition calculation | Amount |
|---|---|
| Purchase price | $340,000 |
| Illustrative bridge: 70% × $340,000 | $238,000 |
| Purchase equity before fees | $102,000 |
| Assumed interest rate | 10.5% interest-only |
| Monthly interest: $238,000 × 10.5% ÷ 12 | $2,082.50 |
| Six months of interest | $12,495 |
| Assumed two origination points | $4,760 |
This example uses a six-month planned payoff, not a six-month bridge term. The published bridge term is 12–24 months. Confirm minimum interest and early-payoff provisions when choosing a note, even if you expect to repay it earlier.
The $102,000 equity contribution plus $4,760 in illustrative points totals $106,760 before other closing charges. Add third-party fees, insurance, property expenses, any work funded outside the bridge, and carry or reserves. Earnest money already paid reduces the remaining wire; it does not reduce the total acquisition equity.
Now assume a hypothetical refinance at 72% of the same $340,000 value. Gross proceeds are $244,800. Subtract the $238,000 principal and only $6,800 remains before refinance costs, accrued interest and other payoffs. The structure could retire the bridge if those costs fit, but it does not return the $102,000 purchase equity.
If the valuation instead comes in at $320,000, the same assumed 72% refinance produces $230,400. The borrower must contribute at least $7,600 to cover the bridge principal, plus transaction costs. This is why a planned DSCR refinance needs a proceeds calculation before acquisition, rather than a general assumption that higher rents will repay the loan.
Cash, fees and the cost of a delayed exit
Build the cash plan in separate categories: acquisition equity, closing charges, any unfunded property work, monthly carry and contingency. A reserve collected at closing may cover some future payments; ask how it is held and applied so those payments are not counted twice.
One point equals 1% of the loan amount. The points and fees guide explains origination, valuation, inspection charges, minimum interest and extension language. It is an educational fee guide; obtain the bridge-specific fee sheet and loan documents for your file. Do not assume a particular processing fee, inspection cost or extension charge from an example.
For the two-flat example, every additional month at the assumed rate adds $2,082.50 in interest before taxes, insurance, utilities, maintenance or loan extension fees. A three-month delay adds $6,247.50. If another property sale is the repayment source, model both a later closing and lower net proceeds.
Before accepting terms, confirm:
- Whether interest is charged on the full commitment or the disbursed balance.
- Whether a quick payoff still owes minimum interest, and whether a prepayment charge applies.
- Who services the loan, receives payments, handles payoff requests and reviews extensions.
- Whether any rehab work is funded, held back or entirely paid by the borrower.
- How a missed milestone changes the exit plan, and what an extension requires.
An extension is subject to review and your loan documents. Contact the loan team before maturity with an updated schedule, liquidity and exit; do not treat an extension as automatic extra time.
Confirm the refinance before relying on it
A rental exit depends on more than loan-to-value. Review the proposed leases, market rent support, operating expenses, property condition and the refinance program’s requirements. Clarify any title seasoning, lease documentation, valuation and cash-out restrictions with the prospective lender.
For a two-flat in Avondale or a three-flat in Logan Square, document shared utilities and which expenses the owner pays. Those costs affect the net rental picture. If one unit is vacant, show the cost and timing of making it rentable instead of assuming full collections immediately after closing.
For a Pilsen storefront with apartments above, confirm that the refinance lender accepts the mixed-use property. A bridge approval does not establish eligibility for a residential rental product. See the Chicago mixed-use financing guide and storefront financing checklist for lease, property-use and expense questions.
A sale exit needs the same discipline: support the expected price with relevant sold properties and deduct the actual projected selling charges, concessions and payoff. If the sale would leave a shortfall, identify the borrower’s source of repayment before closing the bridge.
Chicago records that belong in the file
Review the City’s building permit and inspection records for the address and explain unresolved work. If a permit is pending, use the permit application status service with the application number. Public records are a starting point for the property review, not proof that every condition of the building is acceptable to an exit lender.
Use the Cook County Property Tax Portal to review parcel and tax information. Confirm the investor’s expense assumptions rather than carrying forward the seller’s bill without considering exemptions or changes in use. Obtain a title commitment, current lien payoffs and the settlement team’s list of municipal requirements.
If tenants remain in place, supply leases, deposits, payment history and access arrangements. Review applicable landlord obligations with the property team; do not assume that they begin only after the long-term refinance. The Chicago RLTO guide identifies issues for further review. The actual municipality and occupancy determine which rules need to be checked.
Bridge financing and a 1031 exchange
If the acquisition is part of an exchange, involve the qualified intermediary and tax adviser before choosing the financing and vesting structure. A loan does not resolve exchange eligibility or timing requirements. The IRS explains that Section 1031 applies to qualifying investment or business real property and excludes property held primarily for sale. IRS like-kind exchange guidance.
Provide the intermediary’s transaction plan, proposed ownership, contract dates and intended use of proceeds. Do not assume you can receive exchange funds personally or use them to repay a bridge without affecting the exchange. The lending review and exchange review need to describe the same transaction before the closing documents are prepared.
Chicago metro coverage and application checklist
The same review applies to Chicago, suburban Cook County and the collar counties, including Evanston, Naperville, DuPage County and McHenry County. Use the actual municipality’s records, property type and rent evidence rather than assuming the rules or economics match a Chicago address.
For an initial bridge review, assemble the purchase contract or payoff statement, property photos, value support, rent roll and leases if occupied, entity documents, insurance information and available liquidity. Include remaining construction costs and any other active project commitments. Name the intended exit and the conditions still required for it to happen.
Our Chicago two-flat guide and BRRRR guide help organize the rental plan. Compare Chicago hard money lenders using written terms on the same property and exit assumptions.
Have a purchase deadline or an upcoming payoff? Submit your Chicago bridge request or call (833) 264-7776 with the address, amount, deadline and repayment plan. Rates, terms and conditions are subject to qualification and change. The residential investment programs described here are non-owner-occupied only; owner-occupied commercial loans require a separate review.