Preston Morris
- Sep 8, 2022
- 2 min read

Hard Money Bridge Loan - What is a Bridge Loan?

If you're looking to invest in real estate and are coming to a private money lender, like Curbie & Bessie Capital Investments - a bridge loan provides short term financing with less guidelines and faster closing times.

A cash bridge loan is a short-term loan that is typically used to fill a gap in financing, often for property rehabilitation or investment-purpose properties. A hard money land loan is a privately funded loan that is secured solely by the real estate asset's value.

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Bridge Loans vs. Hard Money Loans

While hard money loans are always made by private lenders, conventional lenders will sometimes offer bridge loans, so while most bridge loans are also hard money loans, this is not always the case. Always ask your banker first if their institution can look at your bridge loan request. The bank interest rates are much lower than hard money loans. However, as suggested in other articles throughout this blog, having established contact with a hard money lender before you need them can be very useful for your investment tool bag.

To sum up, while there is a lot of overlap between bridge loans and hard money loans, they are not completely interchangeable terms. The main differences boil down to who makes the loan (private or institutional lender) and how the funds can be spent.

Is a bridge loan hard to get?

Without a low debt-to-income ratio, it can be hard to qualify for a bridge loan, given the cost of two mortgages. And finally, these loans are typically reserved for those with the best credit histories and credit scores.

What Are the Benefits to Using a Hard Money Loan?

Traditional bridge loans typically require high credit scores. If yours is less than perfect, you may consider a hard money bridge loan. As a result, applying for one avoids credit footprints and the frustrations that come with putting your investment activities on hold while you attempt to secure a profitable property.

Should You Get a Bridge Loan Through a Private Broker?

Although it’s possible to access a hard money bridge loan on your own, the process can be lengthy and complicated. Additionally, a lack of industry knowledge and connections can also mean you have fewer options. In contrast, private loan brokers know how to quickly navigate the red tape that accompanies such loans. Alongside expediting the process, they can reach out to multiple investors and find the best option for your particular loan scenario. With more investment choices, your broker can secure a Loan-to-Value (LTV) rate between 60% and 75% of your current property’s value, giving you the chance to invest in a property that’s fit for development.