Not every deal is ready for a 10-year loan. A bridge loan buys you time and speed; permanent financing buys you stability and a lower rate. Choosing the wrong one costs money either way, so match the loan to the stage of the property.
When a bridge loan fits
Bridge loans are short-term (typically 6–36 months), interest-only, faster to close, and priced higher than permanent debt. They shine when a property isn't ready for a bank yet: a value-add renovation, a lease-up to stabilize occupancy, or a time-sensitive acquisition you'll refinance once it performs.
The plan is the collateral. A bridge lender is betting on your business plan and exit — usually a refinance into permanent debt or a sale — as much as on the building today.
When permanent financing fits
Once a property is stabilized — solid occupancy, durable income — permanent financing gives you a longer amortization, a lower rate, and years of predictable payments. It's the destination most bridge loans are built to reach.
The bridge-to-perm path
A common playbook: buy and reposition with a bridge loan, stabilize the income, then refinance into permanent debt at a better rate. Budget for two sets of closing costs and the NYC recording tax on each — and confirm the bridge loan's prepayment terms so your refinance exit isn't penalized.
Not sure which you need?
Tell us about the property and where it is in its life cycle, and we'll match you — free — to lenders who do the kind of financing your deal actually calls for.