Updated Rates as of August 2026
Bridge loans for investors typically cost 8.99%–13.5% interest-only with 0–3 origination points on 12–24 month terms. On a $350,000 bridge at 11% for 12 months with 1 point, budget roughly $42,000 in interest plus $3,500 in points before exit or refi costs.
Jaken Finance Group bridge programs fund up to 90% of purchase with 7–10 business day closes on qualified files. Bridge loans overview.
Bridge vs DSCR — when each product fits
| Factor | Bridge | DSCR permanent |
|---|---|---|
| Rate (Jaken Finance Group) | 8.99%–13.5% IO | 5.75%–10.5% fixed/ARM |
| Term | 12–24 months | 30 years |
| Best use | Acquisition, value-add, BRRRR step 1 | Stabilized rental hold |
| Close speed | 7–10 business days | ~14 business days |
| Leverage | Up to 90% purchase | Up to 85% purchase |
Bridge is short-term carry — model total cost through your exit (sale, DSCR refi, or payoff).
Worked example — 18-month BRRRR bridge
$280K bridge at 11% IO, 1 point, 14 months to DSCR refi
| Line | Amount |
|---|---|
| Interest (14 mo) | ~$36,050 |
| 1 point | $2,800 |
| Valuation + title | ~$3,200 |
| Bridge finance friction | ~$42,050 |
| DSCR refi at 7.5% (long hold) | Spread cost over years |
Bridge loans for investors · hard money to DSCR refinance · fees schedule
Bridge for BRRRR — total carry through DSCR exit
| Month | Event | Bridge balance | Monthly IO at 11% |
|---|---|---|---|
| 0 | Close acquisition | $280K | ~$2,567 |
| 1–4 | Rehab draws | $310K peak | ~$2,842 |
| 5–8 | Lease-up | $310K | ~$2,842 |
| 9 | DSCR refi payoff | $0 | — |
Total bridge IO (9 months avg on $295K): **$24,500** plus 1 point ($2,800) = ~$27,300 before DSCR closing costs.
Minimum interest trap
If your bridge note has 6-month minimum interest but you refi at month 4, you owe 2 extra months IO (~$5,700 on $310K at 11%). Read the term sheet. Bridge overview · hard money to DSCR
Bridge vs hard money — when labels change the quote
Some lenders use bridge for light-rehab acquisitions and hard money for heavy gut jobs — pricing may sit in the same 8.99%–13.5% IO band but points and LTV caps differ. Bridge files with no rehab holdback often cap at 75%–80% LTV; heavy rehab may reach 90% LTC with draws. Ask whether your quote includes inspection fees per draw before you compare two term sheets.
Exit math — don’t ignore DSCR refi friction
Budget bridge carry plus DSCR closing costs on the back end. A nine-month BRRRR at 11% IO on $310K ($27K) plus DSCR refi at 3% ($9K) = ~$36K total transition cost before you hold long-term at 5.75%–10.5%. If stabilized rent does not clear 1.0 DSCR after refi, you may need a low-DSCR program or another extension. Bridge loans hub · hard money to DSCR · BRRRR case study
Bridge cost components — line by line
| Cost line | Typical range | When it hits |
|---|---|---|
| Origination points | 0–3 pts on loan amount | Closing |
| Interest (IO) | 8.99%–13.5% annual on UPB | Monthly |
| Minimum interest | 3–6 months if early payoff | Payoff |
| Extension fee | 0.25%–1% of UPB | Maturity extension |
| Valuation | $450–$900 | Before close |
| Title + recording | 0.5%–1.5% of purchase | Closing |
| Draw inspections | $250–$400 each (if rehab) | Per draw |
Bridge on a light-rehab acquisition (no holdback) skips draw fees but still carries full IO from day one.
Worked example — DC row home acquisition bridge
| Line | Amount |
|---|---|
| Purchase | $425,000 |
| Bridge at 85% LTC | $361,250 |
| Rate | 10.75% IO |
| Term | 14 months to DSCR refi |
| 1 point | $3,613 |
| IO (14 mo avg on $365K) | ~$45,800 |
| Extension (none taken) | $0 |
| DSCR refi closing (~3%) | ~$10,800 |
| Total bridge-to-permanent cost | ~$60,200 |
Stabilized rent: $3,200/mo duplex. DSCR refi at 75% LTV on $520K appraised = $390K loan — pays off bridge with ~$28K cash out for next deal.
Bridge vs waiting for bank — opportunity cost math
| Scenario | Bridge at 11% IO | Bank denial at week 8 |
|---|---|---|
| Off-market discount | 15% below ARV captured | Deal lost to cash buyer |
| Finance cost (12 mo) | ~$38,000 on $345K | $0 |
| ARV captured | $395,000 | $0 |
| Net position | Own asset + equity | No deal |
Bridge premium buys certainty and speed — Jaken Finance Group closes in 7–10 business days at 8.99%–13.5% IO on qualified files.
When bridge cost exceeds the spread
Walk away when:
- IO + points + extension risk exceeds 25% of projected gross margin
- Stabilized rent will not clear 1.0 DSCR at refi
- Rehab timeline exceeds 18 months without visible exit
- Minimum interest (6 months) exceeds your planned hold
Model two exit dates — month 9 and month 18 — before you sign the bridge term sheet.
Multifamily lease-up bridge — higher carry, different exit
Small multifamily (2–8 units) bridge costs more than SFR because:
| Factor | SFR bridge | Multifamily bridge |
|---|---|---|
| IO base | Purchase + light rehab | Full commitment faster |
| Lease-up | 1 tenant | Multiple tenants staggered |
| Refi exit | DSCR on one lease | Aggregate rent, higher reserves |
| Typical hold | 6–10 months | 10–18 months |
Budget 14 months IO on multifamily bridge — not 9 — before DSCR refi at 5.75%–10.5%.
Portfolio bridge — sequential acquisitions
Sponsors buying three properties in 60 days stack bridge costs:
| Property | Bridge amount | Rate | 12-mo IO |
|---|---|---|---|
| Deal A | $280K | 11% | $30,800 |
| Deal B | $220K | 11% | $24,200 |
| Deal C | $195K | 11% | $21,450 |
| Total annual IO | $695K combined | ~$76,450 |
Liquidity must cover IO on all three until each exits — not just one at a time.
Cross-collateral bridge — one loan, multiple assets
Some bridge programs cross-collateralize two properties:
- Lower points than two separate loans
- Both assets at risk on default
- Exit requires payoff or release of both — partial sale is harder
Confirm partial release provisions before you cross-collateralize a stabilized rental with a flip.
Extension cost stack — when month 12 becomes month 15
| Extension event | Cost on $310K UPB |
|---|---|
| 1% extension fee | $3,100 |
| +0.50% rate bump | +$129/mo IO |
| 3 extra months IO at 11.5% | ~$8,925 |
| Total extension cost | ~$12,000+ |
One extension often exceeds origination points saved by choosing the lowest-point term sheet — model extension risk upfront.
Bridge vs hard money label — compare the term sheet, not the name
| Feature | ”Bridge” quote | ”Hard money” quote |
|---|---|---|
| Rate band | 8.99%–13.5% | 8.99%–13.5% |
| Rehab holdback | Often none | Usually yes |
| LTC max | 75%–80% purchase | Up to 90%–100% with rehab |
| Points | 0–3 | 0–3 |
Same rate band — different leverage. Light-rehab acquisition labeled “bridge” may cap LTV lower than full flip “hard money” with rehab holdback.
Pre-qualify for bridge financing · (833) 264-7776