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 | Refi or sale — often BRRRR |
| Rehab funding | Milestone draws on scope | Often light or no rehab hold |
| Underwriting anchor | ARV + scope + experience tier | As-is value + exit path |
| Typical LTC | Up to 85%–90% all-in on qualified files | Often 75%–80% purchase; varies with rehab |
| Typical rate | 9.5%–13% | 9%–12.5% |
| Term | 6–18 months common | 6–24 months |
| Best for | Cosmetic/heavy rehab resale | Stabilizing hold, light value-add, refi exit |
| Draw admin | Inspections per milestone | Lower if no rehab budget |
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.