Updated
Investors searching fix-and-flip loan vs bridge loan are trying to label short-term capital correctly on a pro forma. Lenders use overlapping terms — both are typically 6–24 month, interest-only, asset-based — but rehab draw mechanics and exit expectations differ.
This comparison focuses on investor residential and small multifamily — not commercial construction ground-up (see construction loan vs bridge loan for ground-up).
Related: Compare loan types · DSCR vs hard money
Methodology & disclosures
- How we compare: Published lender positioning and sponsor deal-flow patterns as of 2026. Not endorsements.
- Not financial advice. Program terms change.
Fix-and-flip vs bridge — side-by-side (2026)
| Factor | Fix-and-flip loan | Bridge loan |
|---|---|---|
| Primary exit | Resale after rehab | Refinance or sale |
| Rehab funding | Milestone draws on a written scope | Light work, or none |
| Underwriting anchor | After-repair value, scope, and exit | As-is value and the payoff plan |
| Jaken Finance Group leverage | Lower of 100% of cost and 75% of after-repair value | Up to 90% of the purchase price |
| Jaken Finance Group rate | 8.99%–13.5% interest-only | 8.99%–13.5% interest-only |
| Term | 6–12 months | 12–24 months |
| Close | 7–10 business days on a complete file | 7–10 business days on a complete file |
| Best for | Cosmetic or heavy rehab, then a sale | Near-ready rental, light work, refinance exit |
When fix-and-flip financing fits better
Defined rehab scope and resale ARV — You have a line-item budget, three sold comps, and a target list date. Lenders price LTC against ARV and release rehab in draws.
Heavy or moderate rehab — Kitchen/bath/full cosmetic or systems work — draw programs protect both sponsor and lender.
Experienced sponsor tier — Repeat flippers unlock higher LTC; first deals should expect lower leverage and more cash in.
Model: Fix and flip profit calculator
When bridge financing fits better
Minimal work, fast refi exit — Property is near rent-ready; you need 90-day close-to-refi capital before DSCR.
BRRRR acquisition without heavy rehab — Light cosmetic or lease-up story; bridge carries you to stabilization.
Wholesale assignment or double-close timing — Short hold where draw infrastructure is unnecessary.
Pair with: Hard money to DSCR refinance · DSCR calculator
Worked scenario — same ZIP, two structures
Asset: $265K purchase, $18K cosmetic (paint, floors, appliances), ARV $310K, rent if held $2,050/mo.
| Structure | Product | Logic |
|---|---|---|
| Flip in 5 months | Fix-and-flip | Rehab in draws; resale pays off balloon |
| Hold after light work | Bridge → DSCR | Bridge for acquisition + light rehab; refi when leased |
If rehab jumps to $65K (systems + kitchen), fix-and-flip draw discipline usually wins — bridge without rehab hold may leave you funding rehab out of pocket.
Draw schedules — where fix-and-flip diverges from bridge
Typical fix-and-flip milestones:
| Draw | Scope |
|---|---|
| 1 | Demo, rough mechanical |
| 2 | Rough inspections |
| 3 | Drywall, cabinets |
| 4 | Finish, CO path |
Bridge files without rehab budget often fund purchase only — any rehab is sponsor cash until refi or sale.
Rate, points, and LTC — compare apples to apples
On the same hypothetical file, ask:
- All-in LTC — purchase + rehab hold included?
- Interest rate — IO only? Extension options?
- Origination points — on total loan amount
- Minimum interest — 3–6 months common
- Exit flexibility — DSCR refi allowed without prepay penalty?
A bridge quote at 10% with 75% LTC may require more cash than fix-and-flip at 11% with 88% LTC — model ROI on cash in, not rate alone.
Extension fees and minimum interest
Both fix-and-flip and bridge loans often carry 3–6 months minimum interest — you pay whether you exit in 90 days or not. Extension fees apply if resale or refi slips past initial term.
| Term | Fix-and-flip (typical) | Bridge (typical) |
|---|---|---|
| Initial term | 6–12 months | 6–12 months |
| Extension | +1–3 months fee | +1–3 months fee |
| Minimum interest | 3–6 months | 3–6 months |
| Rehab draw delay | Adds calendar cost | Less common without rehab hold |
If your exit is refi to DSCR, confirm the bridge lender allows payoff without punitive prepay — some flip products assume resale only.
Auction and off-market timing
| Scenario | Product | Why |
|---|---|---|
| Courthouse auction, 10-day close | Bridge or fix-and-flip | Speed; scope may be light |
| Estate sale, full gut rehab | Fix-and-flip | Draw program required |
| Wholesale double-close | Bridge | Minimal rehab hold |
| BRRRR, $55K rehab | Fix-and-flip → DSCR | Draws + refi path |
See hard money vs conventional when a bank might fund the file if you had 45 days — hard money buys calendar when you do not.
Which cap actually limits the wire
Sponsors compare interest rates and miss the cap that sets the check. On a Jaken Finance Group fix-and-flip, compute both tests and use the smaller loan.
Example. Purchase $275,000. Rehab $48,000. All-in cost $323,000. After-repair value $450,000.
- 100% of cost = $323,000
- 75% of $450,000 = $337,500
- The loan is $323,000, because cost is lower.
Drop the after-repair value to $410,000. Seventy-five percent is $307,500. Cost is now the higher number, so you bring $15,500 before closing costs. An illustrative 11% interest-only payment on $323,000 is $2,961 a month. On $307,500 it is about $2,819. The rate did not change. The value did.
A bridge on the same $275,000 purchase, with no rehab budget, stops at 90% of price, or $247,500. You would fund the $48,000 rehab from cash. That is why a real scope belongs on the flip product even though both coupons sit in the 8.99%–13.5% band.
Bridge math when the exit is a rental refinance
Illustration. Purchase $400,000. As-is value $430,000. No rehab. Rent once leased $2,800 a month.
A bridge at 90% of price is $360,000. At an illustrative 10.5% interest-only, the payment is $3,150 a month. Four months of carry is $12,600, whether or not you refinance in month three. Ask about minimum interest before you model a fast exit.
The permanent loan is a different product and a different clock. Jaken Finance Group DSCR loans run 5.75%–10.5% and close in about 14 business days after the file is complete. Purchase leverage can reach 85% in select markets. Cash-out is 80%. Rate-and-term can reach 85%.
Apply those caps to the $430,000 value:
| Refinance type | Cap | Max loan | Pays off the $360,000 bridge? |
|---|---|---|---|
| Rate-and-term | 85% | $365,500 | Yes, with about $5,500 of room before costs |
| Cash-out | 80% | $344,000 | No. You are $16,000 short before costs |
If you want cash back at the refinance, the bridge has to be smaller, the value has to be higher, or you pay the bridge down first. Do not underwrite a cash-out at the rate-and-term percentage. The DSCR calculator is the place to test the payment once you have a real rent figure.
Freddie Mac reported a 6.60% average 15-year fixed rate and a 7.28% average 30-year fixed rate as of October 1, 2026. A DSCR quote can land inside or above that survey. The survey is conventional conforming applications. It does not include interest-only bridge coupons, and it does not waive the income review a bank still wants.
Read points and reserves off the term sheet, not off a blog
Jaken Finance Group does not publish a single point schedule. The term sheet on your file is the number that counts. Still, you should know how to test whatever origination figure a lender prints.
Illustration. Loan amount $300,000. The sheet shows 2 points. That is $6,000, due at closing, on top of title, insurance, and per-diem interest. It is an example of the math, not a quote from Jaken Finance Group or from anyone else.
If the same sheet also holds back four months of interest at an illustrative 11%, the reserve is $11,000 ($300,000 × 0.11 ÷ 12 × 4). You cannot spend that reserve on tile. A flip loan that looked like 100% of cost can still require the points and the reserve in cash. A bridge at 90% of a $300,000 purchase is a $270,000 loan. Two points on that smaller loan would be $5,400, and there may be no rehab reserve because there is no rehab hold. Compare cash to close, not the point percentage alone.
Put both term sheets on one row: loan amount, rate, points in dollars, interest reserve in dollars, term in months, and whether the exit can be a DSCR refinance. The bridge loan guide covers the hold. The flip product is the one with draws. If you already missed a closing, start with financing that fell through instead of re-trading the same sheet.
A one-page choice list
Pick the flip loan when most of these are true:
- The work needs draws, inspections, and a written scope.
- You will list the house, not lease it.
- Seventy-five percent of a realistic after-repair value covers purchase plus rehab, or you can write the cash gap.
- You can finish and sell inside 6–12 months, including the buyer’s loan.
Pick the bridge when most of these are true:
- The house is close to rent-ready. Any work is paint, flooring, or a short punch list you can fund.
- The exit is a sale of the as-is house, or a DSCR refinance after a lease.
- You need 12–24 months of term more than you need rehab draws.
- Ninety percent of the purchase price, plus your cash, gets you to the exit.
Either product, once the package is complete, is quoted to close in 7–10 business days. A DSCR refinance after that is the 14 business day clock. Do not put the rental close time on the purchase contract.
Other lenders publish their own grids. Use this table for Jaken Finance Group files, then compare a competitor’s term sheet on the same purchase contract. Points, extension fees, and whether interest is charged for a minimum number of months will move the profit more than a half-point of rate. The fix and flip profit calculator is built for the resale path. Run the bridge path by hand with the payoff test in the table above.
If a lender already declined the file, the product choice still matters. A flip decline based on a heavy scope is not automatically a bridge approval. Read what happens when fix-and-flip financing falls through before you re-trade the contract. Baseline documents are on the fix-and-flip loan requirements page.
Call (833) 264-7776 with the purchase price, the rehab total, and the exit you will actually use. Those three numbers decide the product. The rate quote comes after.