Bridge Loans

Below are the key components of our bridge loan program.

See ineligibility criteria here.

 

  • Loan

    • Amount: $50K to $3MM

    • Loan-to-Cost (Purchase): Up to 90%

    • Loan-to-Rehab Budget: Up to 100%

    • Loan-to-Value (After-Repair): Up to 75%

    • Type: Purchase or Refinance

    • Term: 12 months

    • Rate Type: Fixed

    • Payment Type: Interest Only Balloon

    • Payment Frequency: Monthly

    • Pre-Payment Penalty: None

    • Interest Reserves: 1-12 months, based on background/credit

    • Closing Time: Within 5 business days from full file receipt

    • Extension Term: Up to 12 months

  • Property

    • Type: SFR, Condo, 2-4 Units

    • Area: Urban, Suburban, Rural

    • Use: Residential, Non-Owner Occupied

    • Plan: Rehabilitation or Maintenance

    • Minimum Profit Potential (Sale Exit Strategy): Generally 10-20% ROI depending on experience

    • Minimum DSCR (Refinance Exit Strategy): 1.1

    • Eligible States: AL, AR, CO, CT, DE, FL, GA, HI, IA, IL, IN, KS, KY, LA, MA, MD, ME, MO, MS, MT, NH, NM, OH, OK, SC, TX, WA, WI, WV, WY

  • Borrower

    • Type: Business Entity Only

    • Guarantor Credit Score: At least 660

    • Experience: If credit score >680, then none required. Otherwise, 3+ verifiable rehabs/sales of similar size, type and units as subject property during past 36 months (exceptions may be granted to current GC or real estate license holders)

    • Foreign Nationals: Need social security number, credit history, and scores from at least two of the three credit bureaus (i.e. Experian, TransUnion and Equifax). Also need proof of lawful residency in the U.S. during the term of the loan.

  • Fees

    • Lender Fees: 2% Origination Fee, $999 Service Fee (both collected at closing)

    • Third Party Fees: TBD; typical costs include title, insurance, recording, appraisal, property tax report, servicing set up, and legal. (Assume $500-700 for an appraisal before closing and $1,000-1,400 for legal doc prep at closing, depending on the location and deal type.) Wholesaler fees are capped at 20%, if applicable.

    • Rehab Draw Fees: $270 Inspection Fee and $30 Wire Fee (both collected per draw)

GET AN INSTANT QUOTE

Lendency Fix and Flip / Bridge Loan Program Snapshot

  • Minimum Credit Score: 660 minimum qualifying FICO (scores between 600–659 subject to lender discretion)

  • Loan Amount Range: $50,000 minimum up to $1,000,000 standard (up to $3,000,000 max subject to pre-screen)

  • Maximum Leverage:

    • Initial Loan-to-Cost (LTC): Up to 90% of purchase price

    • Rehab Funding: 100% of renovation budget funded via holdback escrow

    • Total Loan-to-Cost (LTFC): Up to 90%

    • After-Repair Loan-to-Value (ARLTV): Standard cap up to 70%–75%

    • Refinance LTV: Up to 85% As-Is LTV (capped at UPB/cost basis limits)

  • Minimum Down Payment: $10,000 hard equity minimum for purchases under $100,000

  • Eligible Properties: 1–4 Unit Residential, Condos (outside FL), Townhomes, PUDs

  • Minimum Property Size: Single-Family >= 700 sq. ft. | Condos & 2–4 Units >= 500 sq. ft. per unit (5 acres max)

  • Interest Accrual: As-Disbursed interest on loans >= $100,000; Full-Boat interest on loans < $100,000

  • Available Terms: 12 Months standard (18–24 months available for expansions/conversions/ADUs; extension options up to 50% of term available)

  • Borrowing Entities: LLCs and Corporations (Personal Guarantee from at least 51% ownership required; full recourse)

Frequently Asked Questions

Basics

What is a Fix and Flip / Bridge loan and how does it work?

A Fix and Flip bridge loan is a short-term, interest-only, business-purpose financing solution designed for investors acquiring or refinancing residential property to renovate, reposition, or resell. The loan funds both the acquisition costs and 100% of the renovation budget, which is held in escrow and disbursed as construction progresses.

Who are bridge loans designed for?

These loans are built for real estate investors, professional home flippers, and landlords seeking short-term capital to stabilize properties before a resale or long-term DSCR refinance.

How are Loan-to-Cost (LTC) and After-Repair Value (ARLTV) calculated?

  • LTC (Initial Loan-to-Cost): Initial loan amount divided by the net purchase price (gross price minus seller credits or concessions).

  • LTFC (Total Loan-to-Total Cost): Total loan amount (initial loan + rehab budget) divided by total costs.

  • ARLTV (After-Repair Loan-to-Value): Total loan amount divided by the appraised After-Repair Value.

Qualification & Requirements

What credit score do I need to qualify for a bridge loan?

Our standard minimum qualifying credit score is 660 FICO. Borrowers with FICO scores between 600 and 650 are evaluated on a case-by-case basis and require higher interest reserves and light-to-moderate project scopes.

Do you look at my tax returns or personal income?

No full personal income documentation or tax returns are required. Underwriting focuses on property equity, project profitability (ROI/DSCR tests), borrower liquidity, and real estate experience. Standard credit, identity, and background checks are conducted.

How much experience do I need to qualify?

We offer a 5-Tier Experience Score matrix based on verified fix-and-flip or rental investment properties owned in the last 3 years:

  • Tier 1 (0 properties): Max $100,000 rehab budget (or 25%–50% of purchase price); light/moderate rehab only.

  • Tier 2 (1–2 properties): Max budget up to 2x highest verified budget (max $500k).

  • Tier 3 (3–4 properties): Access to heavy renovation and expansion projects.

  • Tier 4 & 5 (5+ properties): Unlocks max leverage up to 90% LTC / 75% ARLTV and extensive project scopes.

Note: Licensed General Contractors, Real Estate Brokers, and Active Agents automatically receive a 1-Tier upgrade!

What are the liquid reserve requirements?

All loans require at least 1 month of Interest Reserves (IR) at closing calculated on the total loan balance. Additional reserves apply based on credit and history:

  • FICO 640–660: 6 months IR

  • FICO 620–640: 9 months IR

  • 1 Mortgage Late in past 12 months: 12 months IR

  • Bankruptcy / Foreclosure (4–7 years ago): 3 months IR

Property & Structure

What property types are eligible for bridge financing?

Eligible properties include non-owner-occupied Single-Family Residences (min. 700 sq. ft.), 2–4 Unit Multifamily properties (min. 500 sq. ft./unit), Townhomes, PUDs, and Condominiums (outside Florida). Properties must not exceed 5 acres.

Ineligible properties: Commercial properties, 5+ unit multifamily, mixed-use, log homes, manufactured housing, and Florida condominiums.

Can I close in an LLC or Corporation?

Yes. All loans must close under an eligible business entity (LLC or Corporation). Personal guarantees are mandatory from entity members owning at least 51% in total.

How are construction holdbacks disbursed?

We fund 100% of your renovation budget into a construction holdback account at closing. Funds are released in draw increments as work is completed and verified through inspection reports.

Are prepayment penalties charged on bridge loans?

No! Our short-term bridge products carry no prepayment penalty or minimum interest requirement, giving you maximum flexibility to flip or refinance whenever ready.

Documentation & Process

What documents are needed to apply?

To complete your application file, you will need:

  1. Purchase Contract (or HUD statement if refinancing)

  2. Detailed Scope of Work (SOW) / Line-Item Rehab Budget

  3. Entity Documents (Articles of Organization, Operating Agreement, EIN Letter, Certificate of Good Standing within 90 days)

  4. Government Photo ID and Track Record Schedule

  5. Architectural Plans, Permits, or GC Agreement (if applicable for heavy rehab/new markets)

How is interest charged on my construction holdback?

For loan amounts of $100,000 or greater, interest accrues on an "As-Disbursed" basis—meaning you only pay interest on the principal balance actually drawn. For loans under $100,000, interest is charged on the total original loan amount ("Full-Boat").

Strategy & Risk

What profit or exit metrics are required for approval?

Every project is underwritten against strict Deal Economics tests:

  • Fix & Flip Exit: Must demonstrate a minimum Return on Investment (ROI) generally ranging between 10% and 20% depending on experience tier.

  • BRRRR / Refinance Exit: If ROI is low, the project must qualify under a market-rate 30-year DSCR test at a minimum 1.10 DSCR.

Can I buy through a wholesaler or assignment contract?

Yes, assignment fees and wholesale transactions are permitted up to 20% of the original purchase price. Full chain of contracts (A-to-B and B-to-C) and arms-length verification are required.

What if my project experiences delays?

Loan extensions are available for up to 50% of the original loan duration (e.g., up to a 6-month extension on a 12-month loan) for an extension fee, subject to underwriting approval.

Specialized Program FAQs

What is the maximum loan amount available?

Standard guidelines cover loans up to $1,000,000. Loans between $1,000,000 and $3,000,000 are permitted subject to underwriting pre-screen, 680+ FICO, Experience Tier 3+, and high-liquidity submarkets.

What geographic areas are restricted?

  • Restricted FL Counties: Submissions are not currently accepted in Lee, Charlotte, Sarasota, or Collier counties.

  • Rural Markets: Tier 3+ borrowers only, subject to a maximum 65% initial LTC cap.