Capital for bridge lendersfunded whole, at closing.
Bridge loans are short-term, held to the borrower’s exit and often outside what a warehouse line will finance. With Lender Capital you submit a first-lien, business-purpose bridge loan and one capital partner whose criteria it fits funds the whole loan at closing.
- First-lien, business-purpose
- Funded whole at closing
- Pay only when a loan funds
LOAN FILE · LC-0142
ExampleHarbor Street Mixed-Use
Submitted by a vetted private lender
- Loan type
- Bridge · 1st lien
- Collateral
- Mixed-use, 4 units
- Loan amount
- $1,850,000
- Loan-to-value
- 65%
- Term
- 12 months
Submitted
Reviewed
Matched
Funded
Loan file received
Appraisal, title, borrower and terms
Key takeaways
- Bridge loans are held until the borrower refinances or sells, which can outlast a warehouse line’s dwell limits.
- Some bank warehouse programs list bridge loans as ineligible collateral altogether.
- With table funding, one capital partner funds the whole loan at closing and the loan is assigned to it; none of your capital stays in the loan.
- You keep your points (less the placement fee), earn a spread above the partner’s rate, keep the borrower and service the loan.
Why are bridge loans hard to finance on a line?
A bridge loan carries an investor until a longer-term exit: a refinance once the property is stabilized, or a sale. That exit is the risk, and it is why funding sources treat bridge loans differently from loans sold within weeks:
- Holding period. Bridge loans commonly run six to twenty-four months. Warehouse lines cap how long a loan may stay pledged, and a loan past the limit can lose its advance.
- Eligibility. Some bank programs exclude bridge loans as collateral. Specialty lenders that finance them typically advance less, so more of your capital stays in each loan.
- Extensions. If the exit takes longer, an extension on your borrower’s loan can collide with the line’s aging limits.
How do bridge lenders fund more loans?
The options are the same as for any private lender: your own capital, individual investors, lines, participations, selling loans after closing and direct capital placement. Placement differs because the capital partner commits before closing and funds the whole loan at closing, so you never carry it. See bridge loan exit strategies for what partners look at most closely.
What do capital partners look for in a bridge loan?
Each capital partner sets its own criteria. Expect them to review the as-is value and leverage, the borrower’s business plan and experience, the exit and its timeline, the property’s condition and income, title and insurance. A file that explains the exit in plain numbers moves faster.
The bridge loan file
Capital partners review the full file before committing. A complete file is the fastest way to a decision.
Loan file · LC-0142
Shared before you commit
- Appraisal (as-is, and stabilized value if relevant)
- Business plan and exit strategy
- Rent roll or income details if the property has tenants
- Borrower track record and financials
- Title commitment and insurance
- Your term sheet and pricing
Submit the loan. One partner funds all of it.
You keep your points (less the placement fee), earn the spread above the partner’s rate, keep the borrower and service the loan.
- 01
Apply once
We review your lending business: track record, underwriting and the licenses your states require.
- 02
Submit the bridge loan
A first-lien, business-purpose loan with the full file, before closing.
- 03
We match it
We send it only to capital partners whose criteria it fits. They see the full file before committing.
- 04
Funded at closing
One capital partner funds the whole loan and it is assigned to them. You keep the borrower and service the loan.
Frequently asked questions
Can bridge lenders use a warehouse line?
Some do, typically through specialty lenders with lower advance rates, dwell limits and personal guarantees. Some bank warehouse programs exclude bridge loans as collateral. Check the provider’s eligibility rules and aging limits.
What happens if my borrower needs an extension on a placed loan?
On a loan placed through Lender Capital, extensions follow the loan documents. Because the capital partner owns the loan, it decides on the extension, usually with your recommendation as the servicer.
What bridge loans does Lender Capital place?
Lender Capital places first-lien, business-purpose bridge loans secured by real estate. No consumer or owner-occupied loans and no second liens.
Sources
- Simmons Bank, Warehouse Lending (an example bank program: lists bridge and construction loans as ineligible, does not finance hard money or fix-and-flip loans, and requires personal guarantees from 10% owners)
- Kim, Laufer, Pence, Stanton and Wallace, “Liquidity Crises in the Mortgage Market,” Federal Reserve Board FEDS 2018-016 (warehouse line mechanics: haircuts, margin calls, covenants, guarantees, 364-day terms)
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.
Have a bridge loan you can’t fund yourself?
Apply once. Every lender is reviewed before submitting loans.