Bridge Loans
Bridge Loan Basics
A bridge loan is a short-term financing solution designed to help residential and commercial property owners access fast capital while transitioning between long-term funding options. At AFI Private Lenders, we provide bridge loans to help you purchase, improve, or sell a property while waiting for permanent financing or the sale of an existing asset. Whether you’re flipping a property, renovating for resale, or acquiring a new investment before your current property sells, our bridge loans give you the flexibility and speed you need to keep moving forward.
If you own property with substantial equity or own it outright, you may be eligible to use it as collateral for a bridge loan. Start your funding journey with AFI today — see if you pre-qualify!
Why Choose a Bridge Loan?
The primary advantage of a bridge loan is speed and flexibility. Real estate projects often face unexpected delays and expenses — a bridge loan ensures that lack of cash flow doesn’t slow you down. Whether you need capital to cover construction, renovation, acquisition, or operational costs, AFI Private Lenders offers tailored bridge financing solutions to help you stay on schedule and take advantage of time-sensitive opportunities.
Bridge Loans vs. Traditional Loans
While often confused with conventional financing, bridge loans serve a much different purpose. Traditional loans are generally long-term and based heavily on borrower credit and financial history. In contrast, bridge loans are short-term, asset-backed, and focused on the property's equity and potential — making them ideal for borrowers who need fast funding with fewer hurdles.
Bridge loans from AFI typically have higher interest rates than traditional loans due to their shorter terms, but they offer much faster access to capital — often within days, not weeks.
How Do Bridge Loans Work?
Bridge loans (also known as gap financing or interim financing) provide capital during transitional phases. They’re commonly used by homeowners who want to purchase a new home before selling their current one, or by real estate investors who need funds to renovate and resell a property. On the commercial side, property owners may use bridge loans to finance tenant improvements or renovations before selling or refinancing.
At AFI Private Lenders, we structure bridge loans to meet the specific timelines and needs of our clients — helping you close deals, finish projects, and move on to your next investment without delay.
Typical Terms
Frequently Asked Questions
A bridge loan is a short-term financing solution that “bridges the gap” between the purchase of a new property and the sale or permanent financing of an existing one. It provides fast capital to help investors act quickly on new opportunities.
Bridge loans are commonly used by real estate investors, developers, and business owners who need immediate funding to acquire, refinance, or reposition a property before securing long-term financing.
Our bridge loans can be used for any business purpose properties.
Action Funding provides financing up to 70% of the ARV of the property. This is a more aggressive approach to loan risk than loan to cost.
Refinancing into a long-term loan (e.g., DSCR, conventional, or agency financing)
Selling the property after stabilization or renovation