The Quick Read: A package buyer gets approved on three things: the equity in the properties, the borrower’s liquidity and track record, and an exit plan that holds up once the bridge matures. Personal income documents play almost no role, but a package multiplies every property-level item you have to produce.
- Hard money in the network is asset-based: the lender looks at the property, the plan, and the exit.
- Purchase leverage on a bridge without rehab goes up to 80% of purchase price, and varies by lender, property, and experience.
- Credit starts at a 620 minimum, with extra conditions below 660.
- Collateral must be non-owner-occupied residential, 1-4 units per property.
- The exit decides the deal, so test the long-term refinance before you sign the bridge.
You found a seller with several rentals and one closing date. Your cash is not tied up in a single property, and a standard mortgage timeline will not fit the contract. This guide covers what a bridge lender requires, how a package changes that list, and where deals tend to break.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
What Is a Hard Money Bridge, and Why Do the Terms Overlap?
A hard money bridge is a short-term, interest-only loan from a private source, secured by real estate, that carries you to longer-term financing. “Hard money” names the lender type. “Bridge” names the job the loan does. Many pages use the two words for the same product, and that is fair.
Corporate Finance Institute describes bridge loans as arranged with little documentation and repaid once long-term financing is in place.
Little documentation does not mean no underwriting. The lender still wants equity, a credible plan, and proof you can get to the exit.
Consumer-side explainers describe bridge terms of six to 12 months. Across the wholesale network Lendmire works with, hard money terms typically run 6 to 18 months, interest-only, with no prepayment penalty. That range varies by lender, property, and experience. No multi-year options exist on the current program. Investors who need a longer runway refinance into long-term rental financing.
What Underwriting Actually Looks At
Hard money underwriting runs on three questions. Is the property worth enough to protect the loan? Can this borrower carry and finish the deal? Is there a believable way to pay the loan off?
Here is how a file gets read, step by step.
1. The property. The lender looks at the purchase contract price and an appraised or as-is value. Leverage is measured against that.
2. The borrower’s cash in. Equity or down payment is the first thing a lender checks, because it is the lender’s cushion.
3. Credit and experience. A 620 minimum score applies, with additional conditions below 660. First-time investors qualify at the lower leverage tiers, and the top tier is reserved for experienced investors.
4. Liquidity. Lenders want proof you hold the cash for the down payment, closing costs, and a carry cushion.
5. The exit. This is the repayment plan, and it carries more weight than most first-time bridge buyers expect.
Traditional personal-income documentation and debt-to-income ratios are not the center of the file. Underwriting stays asset-based, which means property, plan, and exit.
How Much Can You Borrow?
Leverage depends on the deal type. These are typical ranges from select lenders in the network, and each varies by lender, property, and experience.
| Deal type | Typical leverage ceiling |
|---|---|
| Bridge purchase, no rehab | Up to 80% of purchase price |
| Fix-and-flip | 85% to 93% of project cost, capped at 75% of after-repair value |
| Cash-out or rate/term refinance | Up to 65% of value |
| Rehab budget | Up to 100% of the budget, funded in draws |
The fix-and-flip tier depends on completed projects. Fewer than 2 completed projects land at 85% of project cost. Two or more reach 90%, and five or more reach 93%. Every tier is capped at 75% of after-repair value.
Notice what is missing. No true 100% purchase program exists. The 100% figure applies only to the rehab budget, and it is released in draws against completed work.
Loan amounts run up to $5,000,000, with larger sizes by exception. Smaller balances vary by lender.
Requirements at a Glance
Most of this list is the same whether you buy one property or eight. The right column shows what changes in a package.
| Requirement | What the lender checks | Package wrinkle |
|---|---|---|
| Collateral | Non-owner-occupied, 1-4 units | Every property must qualify on its own |
| Equity | Cash in the deal | Measured across the whole group |
| Credit | 620 minimum, conditions below 660 | One score, but more property files |
| Liquidity | Funds for down payment and carry | Carry cost multiplies with property count |
| Entity | LLC documents, if buying in one | One entity must hold every asset |
| Valuation | Appraisal or broker opinion | One per property |
| Exit | A believable repayment path | Must work for the group |
Entity documents come up often in this business. Buying through an LLC is common, subject to lender program eligibility, and the entity paperwork needs to be in order before you submit.
How a Package Changes the File
A package is not one property times five. It is five collateral files, one contract, and one clock.
Start with the contract. Package purchase contracts usually carry a single closing date, and some tie the properties together so that one failure can sink the rest. That depends on how your contract is written, so read yours with that risk in mind.
Next comes the loan structure. You can finance a package two ways.
- Separate loans, one per property. You get cleaner payoffs later, but you also get more applications and more closing paperwork.
- Cross-collateralized loans. Here one property backs another. Redfin explains that cross-collateral reduces lender risk, but you could lose one or both properties on default.
Whatever the structure, the concentration risk is the same. A large national bank notes that a default on a blanket loan can lead to foreclosure on every financed property. One weak property can threaten the group.
The Release Clause Question
A release clause lets you sell or refinance one property without paying off the whole loan. Ask for one. But understand what it needs to work: the remaining collateral must be worth enough to cover what you still owe. If you sell your best property first, the release can become expensive or unavailable.
Here is the practical tradeoff. A blanket note gives you one set of fees and one closing. The right call depends on whether you plan to hold the whole package or sell some of it.
A Weak Asset Scenario
Picture a buyer under contract on five single-family rentals. Four are leased and in good shape. The fifth is vacant and needs work. The buyer plans a bridge on all five at a leverage level within the 80% purchase ceiling, then a DSCR refinance.
The four leased homes could come out of the bridge cleanly. The vacant one cannot be refinanced until it is repaired and leased. That house sets the pace for the whole package, and its carry cost keeps running. If the scope is meaningful, the purchase may fit better as a rehab-style loan, funded in draws against completed work, than as a plain bridge.
This is the pattern across mixed-condition packages: the worst property sets the timeline.
The Deadline Sequence
You cannot control the appraiser, the title company, or the insurance carrier. You can control how early you ask. This sequence shows what to line up and what tends to slip.
| Phase | What you do | What can slip |
|---|---|---|
| Before the offer | Gather entity papers and proof of funds | Missing entity paperwork |
| Contract signed | Submit the package and the contract | Incomplete property list |
| Underwriting | Answer lender questions per property | Slow responses on any one asset |
| Third parties | Valuations, title, insurance | Scheduling across many properties |
| Funding | Sign and wire | Cash short for a late cost |
Order the valuations first. Insurance and title also run per property, so start them in parallel instead of in sequence. On a multi-property file, one late item can hold the whole group.
If the deadline is at risk, act in this order:
1. Tell the seller early, and ask for a written extension before the date arrives.
2. Ask the lender which single missing item holds up the file.
3. Consider whether a property causing trouble can be pulled out of the package by amendment.
4. Confirm your cash still covers the down payment and carry if the date moves.
Lenders can only compress their own steps. Third-party work moves at its own pace, and the buffer in your contract is the only protection you have.
Underwrite the Exit First
The exit is where package deals succeed or fail. The logic is plain: the bridge is repaid once long-term financing is available. Lenders ask what that financing will be, and a vague answer is a red flag.
For a rental package, the usual exit is a refinance into long-term DSCR investor loans. DSCR is the debt service coverage ratio. It compares a property’s monthly rent to its monthly principal, interest, taxes, insurance, and any HOA dues, which together are called PITIA.
Here is the catch. Your bridge is interest-only. The DSCR loan carries principal, taxes, and insurance on a balance that may be larger than the bridge. Rent that looks fine against the bridge can look thin against the new loan. Run the ratio against the new loan, not the old one.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. Our complete DSCR loans guide walks through that side in detail.
Some figures to plan around, each varying by lender, leverage, and property:
- A purchase through a DSCR program typically lands at 75% to 80% LTV.
- A cash-out refinance on a standard rental tops out around 75% LTV, and about six months of seasoning is the common expectation.
- Coverage of 1.00 is where select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
- Most programs want a credit score near 660, and 700 or higher unlocks the strongest leverage tiers.
Two cautions matter. First, clearing 1.00 is not the same as positive cash flow. DSCR counts rent against PITIA only, and repairs, vacancy, management, and utilities sit outside it. Second, a property that has not seasoned can be valued at cost instead of at your projected after-repair value, because the refinance uses a new appraisal.
Reserves also come into play. On the long-term loan, reserves are commonly around six months of PITIA, though they vary by lender, leverage, and loan size. Ask early.
Prepayment Looks Different on Each Side
The hard money loan carries no prepayment penalty. DSCR loans often do, in a stepped structure that costs more the sooner you pay off. If you plan to sell part of the package soon after the refinance, price that in. For a side-by-side view, see Lendmire’s piece Hard Money Bridge vs. Direct DSCR Loan to Buy a Rental Package.
Where the General Rule Breaks
Rules of thumb fail at the edges. These are the cases that surprise package buyers.
Property type. Hard money covers non-owner-occupied residential property, 1-4 units. Ground-up construction extends to 10 units. Commercial, industrial, land, lots, hospitality, and owner-occupied property are not offered. If your package mixes a small apartment building with a few homes, one of those assets could knock the whole package out of the program.
Mixed condition. A package of rent-ready and unfinished homes forces a choice between a plain bridge and a rehab structure, and the right answer can differ by asset.
Thin remaining collateral. A release clause protects you only while the leftover properties still cover the balance.
A takeout that is not yet approved. An exit is not real until a lender approves it. Seasoning, a fresh appraisal, and rent coverage on the new loan all have to pass as a separate underwriting event.
A lease signed just before the refinance. Some DSCR programs want a record of documented rent, not just a new lease. Programs differ here, so ask about it before you buy.
Short-term rental plans. If you intend to run any of the homes as short-term rentals, the DSCR side has its own rules. Purchase leverage tops out at 75%, and the borrower typically needs a 640 or higher score and about 12 months of hosting history. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Property types the network does not offer on the DSCR side include manufactured homes (single- and double-wide), log homes, and barndominiums.
Key Terms Defined
Hard money loan: A short-term loan from a private lender, secured by real estate and underwritten mainly on the property and the exit plan.
Bridge loan: A short-term loan that covers the gap until longer-term financing is in place.
Blanket loan: One loan secured by several properties at once.
Cross-collateral: A structure where one property also backs the loan on another.
Release clause: A term that lets you sell or refinance one property without paying off the entire loan.
Loan-to-cost: The loan amount as a share of total project cost, used for flips and rehabs.
DSCR: A ratio of a property’s monthly rent to its monthly PITIA, used to qualify long-term rental loans.
Seasoning: The time you must own a property before a lender will value it at more than your cost.
Making the Decision
Your decision comes down to the exit. Before you sign a bridge, check four things.
1. Does the stabilized rent cover the long-term payment on the new, larger balance?
2. Can every property pass valuation and lender review on its own?
3. Does your cash survive a delay in lease-up or appraisal, because carry costs keep running?
4. Is there a release path if you want to sell one property?
If any answer is shaky, change the structure before the deadline forces you to. A smaller package, a rehab-style loan for the weak property, or a longer runway through a different financing path may fit better. Lendmire also covers the tradeoffs in its piece Hard Money vs Portfolio DSCR Loan for a Buyer on a Short Deadline.
Tax treatment varies, so consult a qualified professional before relying on any deduction.
Frequently Asked Questions
Do I need traditional personal-income documentation for a hard money bridge?
Usually not. The loan is asset-based, so the lender focuses on the property, your equity, and the exit plan. You will still show proof of funds, identification, and entity documents if you buy through an LLC. Requirements vary by lender, property, and experience.
What credit score do I need?
A 620 minimum applies, with additional conditions below 660. First-time investors qualify at the lower leverage tiers, while the highest leverage goes to experienced investors. A score alone does not decide the file, because the property and exit still carry weight.
Can I finance only some of the properties in a package?
Often yes, and it can reduce risk. You might finance the stabilized homes with a bridge and pay cash for the rest, or carve out a problem property. Whether it works depends on the contract, the lender, and whether the remaining collateral still supports the structure.
What happens if one property fails valuation?
The lender may cut the loan amount on that asset, ask for more cash, or remove the property from the loan. If your contract ties the properties together, a removal may need a written amendment from the seller. Raise the issue with the seller early.
Is there a prepayment penalty?
Not on the hard money loan in the network. The long-term DSCR loan you refinance into may carry one, so ask about it before you plan an early sale of part of the package.
Next Step
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Lendmire is a mortgage broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Programs change, every file is underwritten individually, and nothing here is a commitment to lend.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 2026).
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Corporate Finance Institute – Bridge loan
2. Redfin – What is a bridge loan
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Improve Your Credit Tier Before a Hard Money Loan Application · Hard Money Overrun Documentation for a BRRRR Rehab Into a DSCR Loan · Hard Money Loan ARV Requirements in a Small Town With No Comps
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.