Commercial Bridge Loan Terms Explained
Commercial bridge loans have unique terms designed to support transitional real estate. Understanding these terms helps investors structure deals effectively and communicate clearly with lenders.
Loan Amounts
Nationwide bridge lenders typically offer loans from $1M to $50M+. Larger loans are available through syndication or institutional capital partners.
Loan Term Length
Most bridge loans range from 12 to 36 months, with extension options of 6–12 months available on qualifying deals.
Interest-Only Structure
Nearly all commercial bridge loans are interest-only, which reduces monthly payments, improves cash flow during the improvement period, and supports value-add strategies.
Leverage (LTV / LTC)
- Up to 75% LTV on stabilized or lightly transitional assets
- Up to 85% LTC for value-add deals with strong business plans
Recourse vs. Non-Recourse
- Non-recourse with standard carve-outs — available on qualifying deals
- Partial recourse — common for higher leverage transactions
- Full recourse — may be required for complex or distressed deals
Prepayment Structure
- No prepayment penalty
- 3-month minimum interest guarantee
- Step-down prepayment schedule
The specific structure depends on the lender and deal profile.