Updated Rates as of August 2026
A non-recourse bridge loan on 1–4 unit investment property covers a timing gap — acquisition before permanent debt, carry while a buyer’s lender catches up, or lease-up before DSCR refi — with recovery generally limited to the asset if you default, except for standard bad-boy carve-outs. Jaken Finance Group quotes this structure on qualified files; it is not the default on every bridge, and leverage is quoted per deal.
This guide explains when non-recourse bridge beats recourse bridge, how it differs from fix-and-flip hard money, and what underwriters need on duplex-through-fourplex files.
Submit your bridge scenario · Bridge loans for investors · (833) 264-7776
Bridge vs fix-and-flip: pick the right non-recourse product
Both sit in the 8.99%–13.5% interest-only band on qualified investor files. The split is project phase:
| Non-recourse bridge | Non-recourse fix-and-flip | |
|---|---|---|
| Property state | Stabilized or light cosmetic | Heavy rehab with draw schedule |
| Underwriting anchor | In-place value + exit | ARV + scope + exit |
| Typical term | 12–24 months | 6–12 months |
| Rehab holdback | Usually none | Standard draws |
| Common exit | DSCR, sale, 1031 leg | Sale after renovation |
Read bridge vs hard money before you label the deal in your submission.
Published bridge parameters (baseline)
From bridge loan programs on qualified non-owner-occupied 1–4 unit property:
- Rate: 8.99%–13.5% interest-only
- Purchase leverage: up to 90% on qualified files
- Term: 12–24 months
- Close: 7–10 business days with complete file
- Credit: collateral-first — no minimum FICO on select programs
Non-recourse quotes may use the same rate band but lower LTV. Underwriting confirms structure and leverage together — do not assume published purchase caps on a carve-out term sheet.
Common non-recourse bridge use cases on 1–4 units
| Scenario | Why non-recourse matters | Bridge role |
|---|---|---|
| Fast acquisition | Sponsor limits cross-default exposure on other assets | Close in LLC before bank DSCR is ready |
| Listed flip delay | Carry without adding personal guarantee on top of other deals | IO carry until sale proceeds land |
| BRRRR lease-up | Bridge to DSCR at 5.75%–10.5% | Hold through tenant placement |
| 1031 timing gap | Short leg between relinquished and replacement | IO until qualified intermediary funds |
| Portfolio shuffle | Free capital on asset A while B closes | Sequential bridge on separate entities |
Each scenario still needs a credible exit date — open-ended bridge without refi or sale plan is hard to quote non-recourse.
Bad-boy carve-outs: what pierces non-recourse bridge
Non-recourse does not mean “no consequences.” Standard carve-outs that restore recourse to the guarantor include:
- Fraud or intentional misrepresentation on the application or rent roll
- Unauthorized transfer of the property or borrowing entity
- Voluntary bankruptcy of the borrower or guarantor
- Environmental contamination you caused or failed to disclose
- Waste or misuse of collateral in some note forms
Review exact language with counsel. Recourse vs non-recourse walks through the concepts; your term sheet controls.
What underwriters review on a non-recourse bridge file
- Purchase contract or payoff statement — business-purpose, non-owner-occupied
- Entity documents — LLC OA, EIN, certificate of good standing
- Rent roll or market rent support — on duplex+ files, per-unit detail matters
- Operating pro forma — taxes, insurance, vacancy, landlord-paid utilities
- Exit evidence — DSCR pre-approval path, listing agreement, or 1031 QI letter
- Liquidity — reserves for IO, taxes, insurance, and capex during hold
- Title and insurance — clean commitment, hazard binder naming lender mortgagee
Incomplete files get delayed quotes — not friendlier recourse terms.
Illustrative example: acquisition bridge to DSCR (not a quote)
Educational illustration only.
| Item | Detail |
|---|---|
| Asset | Side-by-side duplex, both units leased |
| Purchase | $385,000 |
| In-place rent | $3,100/mo combined |
| Recourse bridge (illustrative) | 85% LTV → $327,250 |
| Non-recourse bridge (illustrative) | 75% LTV → $288,750 — entity brings ~$38,500 more |
| Rate | 10.0% IO · 12-month term |
| Exit | DSCR refi month 8 at 1.15+ ratio |
| Permanent rate band | 5.75%–10.5% on qualified DSCR takeout |
The sponsor accepted lower bridge leverage to keep other personal assets outside the deficiency path. Spread math: compare bridge IO cost vs lost deal if bank timing kills the contract.
Recourse vs non-recourse bridge term sheet — what to compare
When underwriting sends two structures on the same file, line up these fields before you sign:
| Term sheet line | Recourse bridge (typical) | Non-recourse bridge (qualified) |
|---|---|---|
| Initial LTV / LTC | Higher — up to 90% purchase on published band | Lower — quoted per file |
| Personal guarantee | Full or limited PG from managing member | None beyond carve-outs |
| Rate | 8.99%–13.5% IO band | Same band; quoted per file |
| Points / fees | Stated on term sheet | May differ — compare all-in |
| Minimum interest | Often 3–6 months | Read carefully — same risk |
| Extension | Fee + conditions at month 9–12 | Often stricter on non-recourse |
| Carve-out list | N/A | Fraud, misrep, transfer, BK, environmental |
| Prepayment | Minimum interest applies | Same — do not assume free prepay |
If non-recourse saves $400,000 of personal guarantee exposure but costs $45,000 more in equity at close, the trade may still win for portfolio sponsors with active parallel deals. Run the equity cost against your worst-case deficiency on a 15% value drop, not against rate alone.
Illustrative BRRRR: non-recourse bridge on a listed duplex (not a quote)
Educational illustration only — not an offer.
| Phase | Detail |
|---|---|
| Asset | Side-by-side duplex, both units tenant-occupied |
| Purchase (10-day close required) | $310,000 |
| In-place rent | $2,650/mo gross |
| Non-recourse bridge (illustrative) | 72% LTV → $223,200 |
| Entity equity at close | ~$95,000 with closing costs |
| Rate | 10.5% IO · 14-month term |
| Light cosmetic | $18,000 — paid from entity, no holdback |
| Month 5 | Both leases renewed · market rent $2,850/mo |
| DSCR takeout month 9 | 75% LTV on $395,000 value · 5.75%–10.5% band |
| Bridge IO paid (9 months) | ~$17,600 on illustrative balance |
The sponsor bought speed and carve-out protection on acquisition, then exited to permanent debt once leases and ratio cleared. A recourse quote at 85% LTV would have left ~$30,000 more in the entity at close — compare that savings to guarantee stack risk across two other active flips.
Non-recourse bridge vs investment property HELOC
Some sponsors compare bridge to a investment property HELOC. Key differences:
| Non-recourse bridge | Investment HELOC | |
|---|---|---|
| Purpose | Time-bound acquisition or carry | Revolving equity access |
| Recourse | Non-recourse quoted per qualified file | Full recourse on the encumbered property |
| Underwriting | Asset + exit | DTI, FICO 680+, CLTV tiers |
| Speed | 7–10 business days on complete bridge file | As few as 5 business days after notary on qualified HELOC |
See when a HELOC beats bridge for hold-period logic — recourse profile differs on each product.
Small multifamily nuance (2–4 units)
Bridge on a fourplex is still residential 1–4 for most investor lenders — not commercial multifamily. Underwriting adds:
- Per-unit rent and vacancy assumptions
- Shared mechanicals — one boiler, one water meter
- Utility allocation — gross rent vs net rent for DSCR exit
- Insurance — habitational policy vs four SFR policies
Deep dive: non-recourse loans on duplex, triplex, fourplex and finance 2–4 with hard money.
Extension and prepay on non-recourse bridge
Bridge IO is cheap only when the exit lands on time. Before you accept a non-recourse bridge term sheet, model:
- Minimum interest — many notes carry 3–6 months minimum IO even if you pay off early
- Extension fee and conditions — what happens if DSCR refi slips 60 days
- Prepay penalty structure — sale before month 3 still triggers minimum interest
- Carry reserve — two months PITIA plus IO on the bridge balance in entity accounts
A non-recourse bridge at 10% IO on $290,000 costs roughly $2,417 per month. A 90-day slip adds ~$7,250 before extension fees — often more than the spread between bridge and bank rate. Build the slip into your pro forma before you trade leverage for carve-out protection.
When non-recourse bridge is the wrong tool
- Heavy gut rehab — use non-recourse fix and flip with draws
- Owner-occupied — Jaken Finance Group finances investment property only
- No exit within term — extend bridge IO without refi plan burns margin
- Negative DSCR path — if permanent debt cannot clear ratio, fix rent or price before bridge
- IRA vesting — use IRA hard money rules instead
Next step
Tell us the address, contract, rent picture, and exit. Underwriting will confirm whether non-recourse bridge fits — and at what LTV.
Submit your scenario · Non-recourse fix and flip · (833) 264-7776
Structure, leverage, and pricing are quoted per file. Jaken Finance Group is a lender, not a legal advisor; review guarantee and carve-out terms with counsel.