A bridge loan is short-term financing that bridges the gap between where you are and where you want to be. For Florida real estate investors, bridge loans solve time-sensitive problems that conventional or even DSCR lenders cannot address -- closing in days rather than weeks, funding properties in transition, or providing capital while a longer-term solution is arranged.
When Florida Investors Use Bridge Loans
Bridge loans serve multiple investor scenarios:
- Competitive acquisition: Seller wants to close in 10 days. Bridge loans can close that fast where DSCR typically takes 21-30 days.
- Value-add / fix and flip: Property needs renovation before it qualifies for DSCR. Bridge funds the acquisition and rehab; DSCR refinance follows after stabilization.
- Portfolio transition: Selling one property and buying another -- bridge covers the gap if closings do not align.
- DSCR seasoning: Recently purchased property needs 6 months before DSCR cash-out is available. Bridge provides interim liquidity.
- Distressed property acquisition: Property in poor condition does not qualify for DSCR. Bridge funds acquisition and renovation.
Bridge Loan Structure and Terms
Florida bridge loans typically feature:
- Term: 6-24 months, extendable
- Rate: 9-13%+ interest-only
- LTV: Up to 70-75% of as-is value, or 65% of ARV for renovation projects
- Closing speed: 5-14 days for most transactions
- Origination fee: 1-3 points typically
- Exit strategy: Lender must see clear path to repayment (DSCR refi, sale, or conventional permanent financing)
The Bridge-to-DSCR Strategy
The most common bridge loan strategy for Florida investors is the bridge-to-DSCR:
Identify and acquire fast
Bridge loan closes in 7-14 days. You win the deal over slower conventional financing competitors.
Renovate or stabilize
Bring property to rentable condition. Place tenant if buy-and-hold. Or complete flip and sell.
Refinance to DSCR
After 6 months, refinance into 30-year DSCR at new appraised value. Potentially pull out equity from renovation gains. Bridge loan paid off at closing.
Viador Partners Handles Both Sides
We originate the bridge loan and the DSCR refinance. One relationship, continuous communication, no re-explaining your portfolio to a new lender when the DSCR refi comes due.
Florida Bridge Loan Markets
Bridge lending is active across all Florida markets:
- Tampa Bay -- active value-add market in Brandon, Riverview, and North Tampa
- Orlando -- strong flip and STR acquisition activity in Kissimmee and Osceola County
- Jacksonville -- most affordable distressed acquisition opportunities in Florida
- South Florida -- higher acquisition costs but strong ARV premiums for renovation product
Frequently Asked Questions
A bridge loan is a short-term real estate loan -- typically 6-24 months -- that finances an acquisition or transition period until longer-term financing can be arranged. It "bridges" the gap between a time-sensitive opportunity and a permanent financing solution. Bridge loans close faster than conventional or DSCR loans and have more flexible underwriting.
Most bridge loans can close in 7-14 days. Some lenders offer 5-day closings for very straightforward transactions with strong borrower profiles. The appraisal and title search are typically the time constraints.
Bridge loan rates in Florida are typically 9-13%+ depending on LTV, deal complexity, borrower experience, and lender. They are higher than DSCR rates because bridge loans are short-term, higher-risk, and provide more flexibility. The rate premium is the cost of speed and flexibility.
Most bridge loans focus on the asset -- the property value and exit strategy -- rather than borrower income. They are generally available without W-2s or tax returns, though lenders will evaluate creditworthiness and experience.
Yes. Bridge loans are commonly used for auction purchases because they can close quickly and do not require the full documentation of conventional financing. Verify that the specific bridge lender accepts auction purchases and confirm any deposit requirements.