Clear House Lending connects real estate investors and developers with the right lender from our network of 6,000+ private capital sources. Bridge, DSCR, SBA, hard money, and construction loans -- most borrowers get term sheets within 48 hours.
Both finance renovation projects, but they're not the same. Learn which short-term loan type fits your fix-and-flip strategy.
Key Takeaways
Fix-and-flip investors must weigh speed versus cost when choosing between hard money and bridge loans. Hard money offers faster closings for distressed properties and less experienced borrowers, while bridge loans provide lower costs for investors with established track records.
3-7 days
fastest closing times for hard money loans
60-70%
typical LTV for hard money loans (asset-based lending)
78%
of commercial real estate investors prefer bridge loans for time-sensitive acquisitions
Source: CBRE Research
5-15 days
typical closing time for bridge loans vs 60-120 days for traditional financing
Source: Mortgage Bankers Association
| Feature | Hard Money | Bridge Loan |
|---|---|---|
| Lender Type | Private individuals/small funds | Institutional lenders/larger funds |
| Closing Time | 5-10 days | 14-21 days |
| Interest Rate | 10-14%+ | 8-12% |
| Origination Fee | 2-4 points | 1-2 points |
| Credit Requirements | 600+ (flexible) | 680+ |
| Experience Required | None (first-timers OK) | 2+ flips often required |
| Property Condition | Any condition | Typically habitable/minor rehab |
| Documentation | Minimal | Moderate |
| Loan Size | $50K - $2M typical | $100K - $10M+ |
| Approval Basis | Primarily asset value (ARV) | Asset + borrower experience |
Hard money loans are provided by private lenders (individuals or small funds) who focus primarily on the property's value rather than the borrower's qualifications. They're called "hard" money because they're secured by the hard asset (the property).
Bridge loans come from larger, institutional lenders and offer better terms in exchange for stricter borrower requirements. They "bridge" the gap between purchase/renovation and permanent financing or sale.
$200,000 loan for a 9-month flip project:
| Interest Rate | 12% |
| 9 Months Interest | $18,000 |
| Origination (3 pts) | $6,000 |
| Total Cost | $24,000 |
| Interest Rate | 9.5% |
| 9 Months Interest | $14,250 |
| Origination (1.5 pts) | $3,000 |
| Total Cost | $17,250 |
Savings with Bridge: $6,750 (if you qualify). But if hard money helps you close a deal you'd otherwise lose, the extra cost may be worth it.
Many experienced flippers use hard money for deals requiring immediate closing and bridge loans for planned acquisitions with longer timelines. As you build experience and track record, you'll qualify for better bridge loan terms.
Clear House Lending's network includes both hard money and bridge lenders. We'll evaluate your situation—timeline, experience, credit, and project details—to recommend the best option for your specific deal.
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