Stabilized Bridge
Short-term financing against a recently renovated or newly built 1–4 unit property that is listed for sale or about to be rented. No renovation budget, no scope of work.
- Up to 85%
- Loan-to-cost
- Up to 70%
- Loan-to-value
- 12 months
- Term
Program terms
- Loan amount
- $50,000 – $1,000,000. Above $1,000,000 subject to underwriter pre-screen, $3,000,000 maximum.
- Loan purpose
- Purchase or refinance of a non-owner-occupied 1–4 unit property that is rent-ready or listed for sale, with no renovation planned.
- Term
- 12 months. Extensions of up to 50% of the original term, for a fee.
- Maximum LTC
- Up to 85% of purchase price plus verified completed capex where the property has been owned under 6 months. Up to 90% for sponsors with three or more verified properties on newly built or fully renovated (C1–C2) property at or under $1,000,000. Initial loan amount is sized on the lesser of acquisition cost net of seller credits and as-is value.
- Maximum LTV
- 70%. The property must be owned at least 6 months to lend on current value rather than cost basis.
- Exit
- Newly built or fully renovated (C1–C2) property needs no DSCR exit test. Habitable C3–C4 property is underwritten to a 1.10x exit DSCR on the lower of in-place and market rent, so the loan can roll into a 30-year rental loan.
- Amortization
- Interest only, balloon at maturity.
- Minimum FICO
- 660 for sponsors with three or more verified properties, with a 3-month interest reserve between 660 and 680. 680 for sponsors with fewer.
- Experience
- None required on C1–C2 property, at up to 80% LTC. Counted over a 3-year look-back in the same or a neighbouring market; C3–C4 property requires at least one verified property.
- Property condition
- C4 or better with no deferred maintenance. C2 or better where no DSCR exit is used.
- Recourse
- Full recourse. At least 51% of the borrowing entity must guarantee; all members on cash-out refinances.
- Borrowing entity
- LLC or corporation required. Nonprofits and charitable organizations not eligible.
- Foreign nationals
- Eligible with valid passport, valid US visa and US FICO where a personal guaranty is used.
- Net worth
- Guarantor net worth of at least 10% of the loan amount.
- Prepayment
- No minimum interest earned.
- Credit history
- Bankruptcy discharged and foreclosures completed more than 4 years ago; between 4 and 7 years a 3-month interest reserve is required. Tri-merge report no older than 180 days.
- Property size
- Single family from 700 sq ft; condominiums and each unit of a 2–4 from 500 sq ft. Lot size 5 acres or less.
- Prior sale
- Where the property sold within the last 3 years, the prior sale price sizes the loan unless the renovation is evidenced and the appraised value is supported by sub-market comparables.
- Listed properties
- Properties currently or previously listed for sale are eligible. The loan is sized on the lesser of the most recent list price and appraised value.
- Assignment fees
- Wholesale or assignment fees permitted up to 20% of the original purchase price. Full chain of contracts required; double assignments at lender discretion.
- Appraisal
- Dated within 120 days, or 120–180 days with recertification of value.
- Attorney opinion letter
- Required above $500,000 in NJ and NY, and above $1,000,000 in every other state, whether or not it is an attorney state.
- Points
- Maximum 5 total points on the transaction.
- Pricing
- Call for quote.
- Geography
- Available in 37 states and the District of Columbia: AL, AR, CO, CT, DC, DE, FL, GA, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, PA, RI, SC, TN, TX, VA, WV, WI, WY. Reduced leverage applies in FL and LA and in select counties. Four Florida counties (Lee, Charlotte, Sarasota, Collier) and Baltimore City are closed. Prepayment provisions vary by jurisdiction and transaction: several states prohibit a prepayment penalty outright and others cap it by loan size, term or property type, so the provisions available on a given loan are confirmed when the scenario is quoted.
Collateral
Eligible
- Single family residence
- 2–4 unit multifamily
- Condominiums
- Townhomes
- Planned unit developments
- Non-owner occupied only
Not eligible
- Mixed use
- 5+ unit multifamily
- Condotels
- Co-ops
- Mobile / manufactured
- Commercial
- Cabins / log homes
- Leasehold
- Oil or gas leases
- Operating farms, ranches, orchards
- Vacation or seasonal rentals
- Unique, exotic or luxury
- Unpaved / dirt roads
- Rural, illiquid or outlier-value properties
What we need from you
- 1Property address and executed contract, or payoff letter on a refinance
- 2Evidence of the completed renovation or new build — appraisal photos, prior lender draw reports or listing photos
- 3Lease or listing agreement, whichever applies
- 4Borrower track record — last three years of investment properties
- 5Guarantor FICO and entity formation documents