The Quick Read: A bridge loan on a duplex, triplex, or fourplex is sized by the lowest result of several property-based tests (price, total project cost, and finished value), not by your paycheck, and on a purchase with no rehab the ceiling is typically up to 80% of purchase price, subject to lender guidelines. Your limit is whichever test comes in smallest.
- Purchase with no rehab: typically up to 80% of purchase price.
- Purchase with rehab: 85%, 90%, or 93% of project cost, depending on completed projects. Every tier is capped at 75% of the finished value.
- Refinance and cash-out: typically up to 65% of value.
- Rehab money: up to 100% of the rehab budget can fund in draws as work is completed. That is a budget figure, never a purchase percentage.
- Terms: 6-18 months, interest-only. The exit plan matters as much as the limit.
All of these figures vary by lender, property, and experience. None is a commitment to lend.
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.
Key Terms Defined
Bridge loan: A short-term, interest-only loan that covers a purchase, renovation, or refinance until you sell or move into long-term financing.
Business-purpose loan: A loan made to buy or hold a property as an investment, not as your home.
Loan-to-cost (LTC): The loan as a share of total project cost, meaning purchase price plus rehab budget.
Loan-to-value (LTV): The loan as a share of what the property is worth today, based on an appraisal or similar valuation.
After-repair value (ARV): The estimated value once the renovation is finished.
Draw: A release of rehab money after a stage of work is completed. Interest runs on what you have drawn.
Exit: How you repay the bridge. That means selling the property or refinancing into long-term financing.
Seasoning: The waiting period a lender wants after you buy or finish work before it will refinance. It is a lender policy, not a law.
How Does a Lender Size a Bridge Loan on a 2-4 Unit?
The lender runs every applicable test and lends the smallest result. A bridge is secured by the property and the plan to repay it. Your W-2 does not set the number. Credit still matters, and a 620 minimum score applies, with added conditions below 660.
Here is how the tests line up across the network’s hard money program. Figures vary by lender, property, and experience.
| Test | What it measures | Typical ceiling |
|---|---|---|
| Purchase, no rehab | Share of purchase price | Up to 80% |
| Cost test, rehab deals | Share of project cost | 85% / 90% / 93% |
| Finished-value cap | Share of ARV | 75% on every tier |
| Refinance or cash-out | Share of current value | Up to 65% |
| Rehab holdback | Share of rehab budget | Up to 100%, in draws |
The cost tiers depend on documented completed projects. Five or more completed projects reach 93% of project cost. Two or more reach 90%. Fewer than two sit at 85%. First-time investors qualify at the lower leverage tiers.
Note what is missing. There is no true 100% purchase program. When someone advertises “100% financing,” they usually mean the rehab draws, not the purchase.
Step by Step: Which Test Binds First?
Start with the cost-based test, then check the finished-value cap. Whichever gives the smaller loan wins. Run both as percentages first, then convert each to dollars.
1. Pin the tier. Count your documented completed projects. That gives you 85%, 90%, or 93% of project cost.
2. Express project cost as a share of ARV. Say purchase plus rehab equals 80% of the finished value.
3. Apply the tier. At the 90% tier, 90% of 80% is 72% of ARV.
4. Check the cap. 72% sits under 75%, so the cost test binds.
Now tighten the deal. Say cost equals 85% of ARV. At the 90% tier, 90% of 85% is 76.5% of ARV. That is over the cap, so the 75% ARV limit governs and your cash in goes up. Same borrower, same tier. Different deal, different binding test.
At the 85% tier with cost at 85% of ARV, you get 72.25% of ARV. The cost test binds there. Experience shifts which test you hit, not just how much you can borrow.
Thin deals get trimmed. Fat-margin deals run into the cost tier first. (Lenders like it that way.)
What Changes With Two to Four Units?
Unit count changes how value and rent are read, not the sizing logic. Collateral on a 2-4 unit is eligible in the network’s program, which covers non-owner-occupied residential property of one to four units. Loan sizes run up to $5,000,000, larger by exception, and smaller balances vary by lender.
Appraisers value multi-unit buildings partly on unit-by-unit rents. That helps a stabilized fourplex and does less for a half-vacant one. A bridge can still fund a vacant or unstabilized building. The valuation, though, rests on recent closed comps, not on what you spend renovating. An improvement may support a higher appraised value, depending on comps and underwriter review.
Holding title in an LLC is common, subject to lender program eligibility. The loan is still sized on the property and your experience tier.
Where the General Rule Breaks
The rule “lowest test wins” breaks in a few named places. Most surprises come from occupancy, vacancy, and valuation.
Owner-occupancy. The network’s hard money program is for non-owner-occupied investment property only. If you plan to live in one unit, this is the wrong product. Business-purpose treatment is also a facts test, not a label. A federal rule exempts credit extended primarily for a business or commercial purpose, and the CFPB’s Regulation Z commentary treats non-owner-occupied rental acquisition as business-purpose. It also says the rule shifts if the owner expects to occupy the property for more than 14 days in the coming year. That is why investment-purpose loans sit outside the consumer ability-to-repay rules. A compliance trade newsletter makes the same point: not every “investment” property is exempt, because purpose controls.
Vacant buildings. The bridge may fund them. The exit may not. A rental-based refinance needs a tenant in place and rent that covers the payment.
Appraisal gaps. Your budget says the finished value is high. The appraiser reads comps. If they disagree, the ARV cap pulls the loan down.
Longer runway. Terms run 6-18 months, interest-only, with no prepayment penalty. There are no multi-year options on the current program. Investors who need more time refinance into long-term rental financing.
Not offered. Commercial, land, hospitality, and owner-occupied property are not on the sheet. The program is also unavailable in a handful of states and cities, so confirm your location first.
From Borrowing Limit to Cash You Actually Need
Your down payment is whatever the binding test leaves uncovered. The limit is not your net. Closing costs and reserves sit on top, and they vary by lender and file.
Run it backward. If the loan covers 72% of finished value and you are buying a building whose cost is 80% of that value, your cash covers the gap, plus fees. A bigger gap means a thinner file. A lender may then ask for a stronger track record or a lower purchase price.
When your number falls short, the usual fixes are plain. Negotiate the price down. Trim the rehab scope. Bring more cash. Or move from the 85% tier to a higher one by completing documented projects first. Tax treatment varies; consult a qualified professional.
The Exit Decides the Real Ceiling
Think of the exit as part of the sizing. A bridge is interest-only, and the repayment is a balloon. If the permanent loan cannot pay it off, the borrowing limit did not matter.
Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. A DSCR loan checks rent against the full monthly payment, meaning principal, interest, taxes, insurance, and any HOA dues. That payment is larger than the interest-only bridge payment. Clearing that test is not the same as positive cash flow, because repairs, vacancy, and management sit outside it. Lendmire’s complete DSCR loans guide covers how the test works.
Brokers who place these files see the same pattern. The strongest ones choose the exit lender before the bridge closes. They also model seasoning, because a lender’s waiting period can outlast a short bridge term.
This one is a genuine toss-up for borderline fourplexes: take the higher leverage tier and risk a tighter exit, or bring more cash and sleep better. The answer depends on how soon the rent supports a refinance.
What the Decision Looks Like in Practice
Do four things before you sign.
- Pick your tier honestly. Count only documented completed projects.
- Run both tests. Calculate the cost test and the 75% finished-value cap.
- Model the exit. Stabilized rent should support the permanent payment, and value should support the permanent loan size.
- Confirm occupancy. You will not live in the building during the bridge.
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. The brokerage arranges financing through select lenders in its wholesale network, across 41 markets including Washington, D.C. Call 828-256-2183 or request a quote.
Frequently Asked Questions
Is there a legal cap on how much I can borrow?
No federal rule caps a business-purpose bridge loan. The lender’s risk limits do. Those limits show up as percentages of price, cost, and finished value, and they vary by lender, property, and experience.
Does my income decide the loan size?
Not directly. Sizing is asset-based, built on the property, the plan, and the exit. Credit still counts, with a 620 minimum and added conditions below 660. A weak credit file narrows your options even when the property is strong.
Can I get 100% of the purchase financed?
No. There is no true 100% purchase program. What can reach 100% is the rehab budget, funded in draws against completed work. The purchase itself tops out at the tiers above, depending on whether it is a no-rehab purchase or a project with a rehab budget.
Do the units need tenants in place?
Not for the bridge itself. For the exit, yes. A rental-based refinance needs rent that covers the payment, so a vacant fourplex must be leased before that test can be met.
What happens if the limit comes in lower than I need?
You close the gap with cash, a lower price, or a smaller rehab scope. A higher experience tier can also raise the cost percentage. Every file is underwritten individually, and nothing here is a promise to lend.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage focused on DSCR investor financing, helping arrange programs through wholesale and investor-lending channels in 41 markets, including Washington, D.C. DSCR loans are evaluated by the lender on property cash flow rather than personal income, subject to lender guidelines, supporting LLC closings and accommodating investors with four or more financed properties. Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your investment property. No commitment required.
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. CFPB: Regulation Z, Section 1026.3 Exempt Transactions
2. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
3. Compliance Alliance: Regulation Z and Investment Properties
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Bridge Loan vs DSCR Loan Documentation for a Rural Cabin Rental · Hard Money Loan Limits for Flipping a 2-4 Unit Multifamily · Can an Investor Get a Bridge Loan Without Verifying Personal Income?
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
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.