By Sagi GliksmanCapital Strategy2 min readUpdated
Hard Money vs. Bridge Loans: Which One Fits Your Deal?
Hard money or bridge loan? Rates, LTV, terms and closing speed side by side: which short-term loan fits your next deal.
Key takeaways
- Bridge loans fit stabilized or near-stabilized assets with a clear exit: a refinance or a sale.
- Hard money fits heavy-rehab and distressed residential deals, where speed matters more than rate.
- Bridge loan terms*: up to 70% LTV, 6-24 months, close in 7-14 days, rates from 9.5%* (this may be for the strongest files, sometimes with a buydown).
- Both are asset-based and interest-only. Both close faster than a bank.
Investors use 'bridge' and 'hard money' interchangeably. They are different loans.
Both are short-term, asset-based and faster than a bank. The underwriting, the pricing and the use case differ.
Bridge loans
Bridge loans are built for stabilized or near-stabilized assets with a defined exit: a refinance into permanent debt, or a sale.
Pricing is closer to institutional. Eligible assets are broader, including small multifamily and commercial.
Terms run 6-24 months, up to 36 on a multifamily bridge.
Hard money
Hard money is short-term private capital for heavy-rehab and distressed deals, where speed beats rate.
Today it works like a fix-and-flip loan, built for residential value-add projects.
How to choose
- Stabilized asset with a refi exit → bridge
- Distressed or heavy-rehab 1-4 unit → hard money / fix and flip
- Multifamily reposition with a 24-month business plan → bridge
- Auction or tight deadline → bridge, closing in 7-14 days
What both share
- Asset-based underwriting: the deal matters more than credit and income
- Faster than bank debt: bridge loans close in 7-14 days
- Higher rates and points than long-term financing
- Interest-only payments with a balloon at term
Bridge loan terms (as of November 2026)*
- Loan size: $50K-$20M
- Max LTV: 70%
- Term: 6-24 months
- Close in: 7-14 days
- Rates from 9.5%* (this may be for the strongest files, sometimes with a buydown)
- Same-day term sheet, no hard credit pull
- * Subject to underwriting
Send the asset and the exit. Term sheet the same day.
See bridge loan termsFrequently asked questions
Is a bridge loan the same as hard money?
No. Bridge loans suit stabilized assets with a clear refinance or sale exit. Hard money suits heavy-rehab and distressed deals.
Both are short-term and asset-based.
How fast can a bridge loan close?
In 7-14 days.