If you need to perform complex financing options such as a Bridge Loan in Florida, then Hard Money Lenders IO is here to assist you every step of the way.

How we help our customers

We provide bridge loans to those in need of cash for great investment deals. Hard Money Lenders IO offers quick approval, reasonable rates, and access to the funds you need to make deals happen.

What we look forward to

We look forward to helping you develop your portfolio by providing Bridge Loans that increase your ability to invest in great deals hitting the market – even if your equity is currently tied up in another property!

Definition of a bridge loan


A bridge loan is a short-term loan designed to help an individual or company purchase a second property prior to the final sale of the first property, hence the bridge metaphor. This particular kind of loan enables the buyer to leverage the equity of the first property when buying the second property, thus securing a loan while the first property is still on the market. You may also hear this kind of loan referred to as a swing loan, gap financing, or interim financing.


How bridge loans differ from other loans

There are a wide variety of different choices for potential borrowers looking at purchasing residential real estate. A few of the most common options you may encounter include:

⦁ Fixed-rate mortgages
⦁ Adjustable rate mortgages
⦁ Government insured mortgages
⦁ Jumbo loans
⦁ Conventional loans

A bridge loan, however, is a bit different from these types of loans. It is designed to be flexible and short term, requiring minimal time investment. Bridge loans can be secured very quickly, and ideally, paid off just as quickly. Let’s consider the circumstances in which a bridge loan may make sense for you.

We don’t want you to miss hot investment deals anymore

That’s why we’re ready to help and willing to give you a pre-qualification the same day you submit your info for our loan program.

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When should you consider taking out a bridge loan?

The typical scenario for taking out a bridge loan is purchasing a property while you have another property on the market. As described above, a bridge loan allows you to use equity on the first property in order to purchase the second property. If any of the following criteria describe your situation, you may want to look into a bridge loan:

⦁ You expect you’ll be selling the first property within the next few months, and are ready to purchase another property now
⦁ You can’t afford the down payment without equity from the first property
⦁ Local sellers aren’t willing to accept offers based on contingencies
⦁ Your credit background and equity qualify you for a bridge loan

However, a bridge loan isn’t always a good idea. You should also consider some circumstances in which a bridge loan may not work out for you.

⦁ You don’t know how long it will take to sell the first property, or if it will sell at all
⦁ You don’t need the bridge loan to make a down payment on the second property
⦁ You can secure financing in your area without a bridge loan
⦁ You aren’t certain you could afford two mortgages at once

Arguments for and against bridge loans

There are always going to be pros and cons behind any decision you make. Below, we’ll examine a few arguments in favor of bridge loans. These advantages may include…

⦁ Timely financing. A bridge loan is often one of the fastest avenues for funding, which may be crucial in a competitive market.
⦁ Adaptability. Bridge loans make you more flexible as a buyer by allowing you to close on a second property before moving on from the first.
⦁ Make use of your equity. It goes without saying that bridge loans allow you to use the equity in your current property right away.
⦁ Say goodbye to contingencies. You won’t need to deal with contingencies when your offer is backed up with cash. No more uncertainty while you wait for the current property to sell!

However, there are disadvantages to consider, too. As you weigh your options, keep these in mind…

⦁ Twofold mortgage payments. If the first property doesn’t sell by the time you have to start making payments on the bridge loan, you’ll be left responsible for both loans.
⦁ High interest rates. In a short term lending situation, the lender has less time to collect interest on a loan; accordingly, the lender will likely charge much higher interest to make up for it.
⦁ Good credit needed. Lenders likely won’t extend a bridge loan to a borrower without a great credit history and a reasonable expectation of financial stability. If your credit history is less than ideal, you may not qualify for any offers worth taking.
⦁ Equity minimum. A bridge loan uses the equity from the first property as collateral, so that first property has to have a certain amount of equity to qualify. The amount can vary quite a bit, but a rate around twenty to twenty five percent wouldn’t be out of the ordinary.

There may be a better option than a bridge loan if circumstances don’t appear favorable, so don’t assume the worst!

Other choices: alternatives to bridge loans

Funding options apart from bridge loans may work better in some scenarios. A few of these options could include…

⦁ A personal loan, if you can obtain a sufficient down payment. This type of loan isn’t necessarily tied to the current property, and may allow a more flexible repayment plan.
⦁ A ⦁ home equity line of credit, or HELOC. This option allows you to borrow against the equity of the first property. Think of it sort of like a credit card: you may be approved for a certain amount of spending, but you only have to pay interest on however much you actually use at a given time. This loan may have a lower interest rate than a bridge loan, but you’ll need to take out a home equity line of credit before you put the property up for sale. Some lenders may not approve once the property is on the market.
⦁ Of course, if time allows, you can simply wait for the first property to sell. This isn’t the most appealing option, but it’s often a practical one. Where do you see the market headed over the next few months? You may have time yet.

Overview of our Bridge loan program

Experience Level Any
Credit Score 600
Interest Rate 9% – 12%*
 Points 0% – 2%
Eligible For a 0-Point Option? Yes
Advance Rate on Rehab or New Construction 10%
Advance Rate on Current Value 10%
Loan % to After Rehab Value 75%


Property Types

Single Family, Multi-Family, Mixed-Use
Prepayment Penalty No
Extension Available Yes
Cross Collateral/ Blanket Loans Yes
Loan Size $100k-$5M
Loan Terms 3 Months – 2 Years

Bridge Loan FAQ

Could I apply for a long term bridge loan?

The purpose of a bridge loan is to hasten a purchase while another property is still up for sale, so bridge loans are limited to a term of up to one year. However, we may be able to help with other loan options for long term planning.

Could I apply for a bridge loan from a traditional bank?

Generally, traditional banks are not willing to offer bridge loans. As a hard money lender, we are equipped to offer these loans even though banks likely would not.

What will the interest rate look like?

Interest rates on consumer bridge loans vary, though generally being higher than in the case of a mortgage from a traditional lender. The specifics of your case will dictate the interest rate and fees we charge, but borrowers typically pay something in the range of eight to ten percent interest.

When should I apply for a bridge loan?

You’ll generally want to apply sooner rather than later. This way, you can make an offer on the intended purchase without depending on contingencies or a pending approval. This way, you can negotiate with more confidence.

How long does it take to apply and be approved?

It may vary depending on your situation, but generally, the process moves very quickly compared to other kinds of loans. Bridge loans are short term by design, and serve a very specific purpose, so there is every incentive to make the process a quick one. You’ll want to make sure you have all the documents we may ask for.

What should I have in order to apply?

Well— you need equity, of course. You’ll also want to have any of these applicable documents on hand, though you may not ultimately need all of them:

⦁ Pay stubs reflecting at least 30 days of income
⦁ Names and addresses for each employer over the past two years
⦁ At least one year of tax returns
⦁ W-2 forms for two years
⦁ Completed and signed 4506-T or 4506T-EZ forms, dependent on your mortgage banker
⦁ Proof of pension income, if applicable
⦁ Bank statements dating back two or three months
⦁ Social Security and Social Security Disability payments, if applicable
⦁ Year to date profit and loss statement and two years of signed returns, if self employed
⦁ Dividend earnings
⦁ Bonuses
⦁ Child support or alimony payments (optional, but may help our decision making)
⦁ Statements relating to any outstanding debts, including car loans, student loans, or credit card debt
⦁ Information on security accounts, including stocks, bonds, life insurance, et cetera

Of course, every loan is different and we could ask for more (or less) information in your case.

When will the bridge loan be disbursed?

Every case is different, but we try to have all approved loans disbursed within roughly 14 business days. It goes without saying that time is of the essence when it comes to bridge loans, so we try to keep things moving as fast as we can.

Hard Money Loans vs. Bridge Loans

Though a bridge loan can be considered a type of hard money loan, a hard money loan is not necessarily a bridge loan. A bridge loan and a hard money loan both require you to have equity in a current property, and use that property as collateral to secure a loan. However, these loans serve different purposes. A bridge loan is designed around the short term goal of facilitating a property purchase, while a hard money loan is more general in application. There are different types of hard money loans, of course. For instance, consider hard money loans for a primary residence.

Step 1 – Prequalification:

You’ll be pre-screened by a member of our hard money lending team to go over questions that will help determine if you’re a suitable candidate for a hard money commercial loan

Step 2 – Documentation:

Once you’re pre qualified, we’ll let you know the documentation we need to help you continue with the loan. These documents include a verification of your initial application, as well as a business plan laying out your intentions for your investment.

Step 3 – Terms:

After you’ve submitted all necessary documentation, we’ll work with you to finalize loan terms including interest rate, LTV ratio, down payment, points, closing fees, and your loan repayment schedule.

Step 4 – Property Inspection:

Once all the loan terms have been finalized, we will appraise and inspect the property to ensure that you are purchasing the property near, at, or below market value. If no major problems come up and you’ve done the due diligence on your end, the loan will move on to closing.

Step 5 – Closing:

After all other steps have been completed, we’ll begin securing the necessary funds to help you invest in your commercial property. Funding can be expected in as little as 1-3 weeks depending on the situation.

Congratulations, you now own a commercial property!

How to maximize your odds of qualification

At Hard Money Lenders IO, there are a few factors that successful loan applicants share. Factors you can control in the short term include having a solid business plan, identifying a strong property in an attractive market, having paperwork ready to go, and doing your due diligence on questions that may be asked of you. While researching your investment, it will be helpful to use our hard money loan calculator to do your homework and work out the baseline financials of your deal.

In the long term, factors like good credit and experience will help you secure better financing terms, but a lack of these will not disqualify you from successfully securing a loan.

How to check if you’re eligible for a bridge loan

In order to qualify for a bridge loan from Hard Money Lenders IO, you need to be purchasing a property in Florida; however, you do not need to be a Florida resident. The easiest way to check if you qualify for a bridge loan is to give us a call or message at Hard Money Lenders IO!

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