In the multiunit real estate world, liquidity and timing often matter more than anything else. You might have the perfect project lined up—a value-add apartment complex, a conversion opportunity, or a refinance to unlock equity—but without quick access to capital, your strategy stalls. Traditional loans simply weren’t built for investors who need to move fast and think big.
That’s where multifamily bridge loans come in. Designed for speed and flexibility, these short-term loans help investors purchase, renovate, or stabilize multifamily properties before transitioning to long-term or agency financing. Whether you’re acquiring a small apartment complex, converting a property into multiunit housing, or refinancing an existing loan, a bridge loan provides the leverage to act quickly and strategically.
At Hard Money Loan Solutions, we specialize in helping investors like you seize opportunities others miss. Our multifamily bridge loan programs are built to close fast, fund confidently, and position your property for long-term success.
What Is a Multifamily Bridge Loan?
A multifamily bridge loan, or a bridge loan for multiunity property, is a short-term, asset-based loan used to “bridge” the gap between immediate financing needs and permanent funding. Investors often use these loans to buy or refinance apartment buildings or multiunit properties while improving cash flow or preparing for agency or traditional loans.
Unlike bank financing, bridge loans are not based primarily on tax returns or credit scores. Instead, they’re underwritten around the property’s current and projected value, which means approvals are faster and more flexible. Typical terms range from 6 to 24 months, giving investors time to complete renovations, increase occupancy, or stabilize rents.
Here’s how the bridge loans compare to the traditional loans:
| Feature | Multifamily Bridge Loan | Traditional Bank Loan |
| Funding Speed | 1–2 weeks | 1–3 months |
| Credit Score Focus | Minimal | High |
| Underwriting Basis | Property value and exit strategy | Borrower’s income and tax returns |
| Flexibility | High — customized terms | Limited, rigid criteria |
| Purpose | Transitional or value-add projects | Long-term stabilized assets |
| Term Length | 6–24 months | 10–30 years |
While both loan types serve property investors, their structures are completely different. Bridge loans became so popular because they prioritize speed, flexibility, and short-term opportunity, making them ideal for investors who expect a major liquidity event soon — such as a refinance, property sale, or capital injection. They’re typically paid off in a single lump sum at the end of the term, once the borrower’s long-term financing or exit strategy comes through.
Traditional loans, on the other hand, are built for stability—repaid gradually in monthly installments over 10 to 30 years and intended for properties that are already stabilized and income-producing. For investors facing a competitive bidding process, an expiring loan, or a property in need of rehab, a bridge loan can be the difference between closing and losing the deal.
When to Use a Multifamily Bridge Loan
Bridge loans are versatile tools that serve investors at nearly every stage of the property lifecycle. You might consider a multifamily bridge loan for:
- Property acquisition. Secure funding fast to purchase a property before another investor steps in.
- Renovation or repositioning. Fund upgrades or unit conversions to boost NOI (Net Operating Income).
- Bridge to agency financing. Use short-term funding while waiting for Fannie Mae or Freddie Mac approval.
- Refinancing or debt payoff. Replace maturing loans or avoid foreclosure.
- Construction completion. Cover remaining costs or delays in construction or permitting.
- Portfolio expansion. Acquire additional assets while your capital is tied up in other properties.
In short, whenever flexibility, speed, or creative structuring is needed, a bridge loan offers a tailored solution to move your project forward without waiting months for a bank’s approval.
Benefits of Multifamily Bridge Loans
The main advantage of a bridge loan is control. It gives investors the ability to move quickly, act strategically, and maximize opportunity without being held back by red tape.
Imagine purchasing an older 12-unit apartment complex with low rents and deferred maintenance. A bridge loan lets you fund the purchase and renovations quickly, increase rents within 12 months, and then refinance into a 30-year loan at a lower rate. The short-term higher rate becomes a strategic cost of capturing long-term equity growth.
Here’s our breakdown of the key advantages of multiunit bridge loans:
| Benefit | Description | Example Use Case |
| Speed | Close in days, not months. | Buy a 20-unit building before it hits the open market. |
| Flexibility | Loan terms tailored to your strategy. | Fund partial construction or mixed-use conversion. |
| Leverage | Access up to 75% LTV for acquisitions or improvements. | Use equity from one property to acquire another. |
| Credit Flexibility | Approval based on asset value, not credit score. | Investors with nontraditional income sources. |
| Bridge to Agency | Transition smoothly to long-term financing once stabilized. | Move from short-term rehab to Fannie Mae loan. |
Risks and Considerations
While powerful, bridge loans come with unique downsides. The biggest risks include:
- Higher interest rates. Bridge loans often range between 10% and 12% — higher than conventional mortgages — because they’re short-term and carry greater lender risk.
- Shorter repayment period. You must have a clear exit strategy, such as refinancing or selling the property within 12–24 months.
- Market volatility. If property values fall or agency financing tightens, it could affect your refinance options.
Experienced investors mitigate these risks through strong planning, conservative leverage, and working with reputable lenders who understand multifamily market cycles. When used correctly, a bridge loan becomes a launchpad for long-term success, not a liability.
Multifamily vs. Construction Bridge Loans
While both multifamily bridge loans and construction bridge loans fall under the same general category of short-term real estate financing, they serve very different purposes in an investor’s strategy. The key distinction lies in the stage of the project and what kind of property the loan is funding.
A multifamily bridge loan is designed for properties that already exist — apartment buildings, duplexes, or multiunit complexes — but need time, capital, or repositioning to reach their full potential. Investors typically use these loans to acquire undervalued assets, complete light to moderate renovations, or stabilize rent rolls before refinancing into a long-term mortgage. These loans are particularly valuable when a property isn’t yet “bankable” because of low occupancy or deferred maintenance. The focus is on unlocking value quickly and transitioning to permanent financing once the property’s income supports it.
A construction bridge loan, on the other hand, finances projects that are either in the middle of being built or about to break ground. These loans provide the liquidity developers need to finish construction, cover cost overruns, or bridge the period between the completion of a project and the issuance of a takeout loan or sale. Because these properties aren’t yet income-producing, construction bridge loans rely heavily on project plans, permits, and future value projections rather than current cash flow. They often include draw schedules tied to project milestones.
In short, multifamily bridge loans bridge time, while construction bridge loans bridge completion. The former helps investors reposition and stabilize existing properties; the latter ensures developers can bring new ones to market. Both can be vital to a portfolio’s growth, and many investors use them sequentially — first to build, then to lease up and refinance through a multifamily bridge loan before locking in a long-term loan.
| Loan Type | Typical Use | Term | Common Borrowers |
| Multifamily Bridge Loan | Acquisition, renovation, or refinancing | 6–24 months | Real estate investors, LLCs |
| Construction Bridge Loan | Ground-up development or major additions | 12–24 months | Builders, developers |
| Bridge to Agency Loan | Transition from private to Fannie/Freddie | 6–18 months | Investors awaiting agency approval |
How the Application and Funding Process Works
Getting a multifamily bridge loan is simpler than most expect. Because approval is based primarily on the asset rather than the borrower’s tax history or credit, underwriting is fast and straightforward:
- Share project details such as property address, purchase price, renovation scope, and timeline.
- Receive preliminary terms within 24 hours based on property value and experience.
- Our team reviews documentation, rent rolls, and exit strategy.
- Streamlined appraisal process, often completed in under a week.
- Close in as little as 7–14 days. Funds are wired directly to complete acquisition or rehab.
This streamlined process helps investors seize opportunities while others are still waiting for their banker to call back.
Ready To Fund Your Next Multifamily Project With HML Solutions?
In today’s competitive real estate market, speed and flexibility can make or break a deal. A multifamily bridge loan gives you both — empowering you to buy, renovate, refinance, or stabilize properties that traditional banks won’t touch.
At HMLS, we’re more than a private lender — we’re real estate experts who understand the fast-paced nature of multifamily investing. We know that every day counts, and that investors need partners who can move as quickly as they do.
When you work with us, you get direct access to decision-makers who can approve and fund your deal within days — not months. Our underwriting is flexible, asset-based, and focused on the potential of your project, not just your credit report.
Here’s what makes our bridge loans stand out:
- Loan amounts up to $20M+
- No credit score requirements
- Closing in 1–2 weeks
- All borrower types are accepted: individuals, LLCs, foreign nationals
- Various property types accepted, including apartments, mixed-use, commercial, conversions, and new developments
We take pride in offering fast, fair, and flexible lending solutions nationwide. Whether you’re refinancing an apartment building, funding a value-add project, or building from the ground up, we make it possible to act when timing matters most.
Our clients often tell us they appreciate our transparency, responsiveness, and ability to close deals that others can’t. We consider every loan an investment in our relationship with the borrower — not just a transaction.
Get in touch with our team today—and let’s bridge the gap between your vision and your next big opportunity.
FAQs About Multifamily Bridge Loans
What credit score do I need for a multifamily bridge loan?
We base approvals primarily on the property’s value and income potential, not the borrower’s credit score.
How fast can a multifamily bridge loan close?
Most loans close in 7–14 days, depending on property type and documentation.
Can I use a bridge loan to convert a property into multifamily?
Yes. Bridge loans are ideal for funding renovations and conversions that increase property value.
Do you lend to foreign investors or LLCs?
Absolutely. We regularly work with both U.S. and international investors.
Featured image: Sigmund
