REAL ESTATE GLOSSARY
Bridge Loan
Bridge Financing
Shorter-term financing used until a property or business reaches a refinancing or exit event.
What does Bridge Loan mean?
Shorter-term financing used until a property or business reaches a refinancing or exit event. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Bridge Loan in context
An investor uses an 18-month bridge loan to renovate and lease a multifamily asset.
Why it matters in financing
Bridge Loan can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related real estate terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.