The Quick Read: No law sets a maximum bridge loan on an investor’s single-family home. The limit is the lowest result of several lender caps, applied to the property’s cost and value. Across the wholesale network Lendmire works with, those caps depend on the deal type, the after-repair value, and how many projects the borrower has finished. Every figure below varies by lender, property, and experience, and nothing here is a commitment to lend.
- Loan size is collateral-first. The property, the plan, and the exit drive the number, not the borrower’s paycheck.
- The loan is the lesser of a cost-based cap and a value-based cap. The tighter one controls.
- Fix-and-flip leverage typically runs 85% to 93% of project cost, depending on completed projects, and never above 75% of after-repair value.
- A bridge purchase with no rehab typically reaches up to 80% of purchase price. Refinances typically reach up to 65% of value.
- Loan amounts typically run up to $5,000,000, with larger loans by exception.
What Is a Hard Money Bridge Loan on a Single-Family Home?
A hard money bridge loan is short-term, interest-only money secured by the house itself. Investors use it to buy, rehab, or hold a property until permanent financing or a sale pays it off.
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.
Most programs in the network lend on non-owner-occupied residential property of one to four units. A single-family rental or flip fits that box cleanly. Terms typically run 6 to 18 months, interest-only, with no prepayment penalty. There are no multi-year options on the current program.
That structure explains the sizing. The lender has a short window to get repaid, so it protects itself with equity. The loan is held below the property’s value, and the borrower funds the gap.
Key Terms Defined
- LTV (loan-to-value): The loan divided by what the property is worth today, on an as-is basis.
- LTC (loan-to-cost): The loan divided by the total project cost, meaning purchase price plus rehab budget.
- ARV (after-repair value): The appraised value the property should reach once the planned work is finished.
- LTARV (loan-to-ARV): The loan divided by the after-repair value. This is the cap that most often limits rehab deals.
- Holdback: Rehab money the lender keeps back and releases in draws as work is completed and inspected.
- Draw: One release of holdback funds, paid against finished work and invoices.
How Do Lenders Set the Loan Amount?
Lenders set the amount by comparing the loan to collateral, then picking the lowest result. Income does not drive the number. Several checks run side by side, and the smallest answer wins.
The formula in plain form:
Loan = the lesser of (leverage % × cost) and (75% × ARV).
On a purchase with no rehab, the check is simpler. The lender applies its purchase cap to the price.
Here is what that looks like on the program the brokerage places most often:
| Deal type | Typical cap | Measured against |
|---|---|---|
| Bridge purchase, no rehab | Up to 80% | Purchase price |
| Fix-and-flip, fewer than 2 projects | 85% | Project cost |
| Fix-and-flip, 2+ projects | 90% | Project cost |
| Fix-and-flip, 5+ projects | 93% | Project cost |
| Cash-out or rate/term refinance | Up to 65% | Value |
| Rehab budget funded in draws | Up to 100% | Rehab budget |
Every flip tier is also capped at 75% of ARV. The 100% rehab figure is a share of the rehab budget, paid out in draws. It is not a purchase LTV, and there is no true 100% purchase program. A borrower who hears “100% financing” is usually hearing about the rehab piece only.
One more point matters here. Cost-based and value-based percentages are not interchangeable. When a lender quotes 75%, ask whether that is of cost, of as-is value, or of ARV. The same number covers three different loans.
Worked Examples: Which Limit Binds?
The three examples below use index points, not dollars. They are modeled assumptions, not market data. They show how the cost cap and the ARV cap trade places.
Example 1: Bridge purchase, no rehab. Purchase price is 100 points. The cap is a percentage of price, so the loan tops out well below the full purchase amount. The borrower brings the remainder, plus closing costs and carry reserves. No ARV test applies because no work is planned. This is the simplest case, and it fits a house that is rentable as-is but not yet ready for long-term financing.
Example 2: Light rehab. Purchase is 100 points and rehab is 20, so cost is 120. ARV is 150.
- At the 85% tier, the cost cap gives 102 points.
- The ARV cap gives 75% of 150, or 112.5.
- The cost cap is lower, so it binds. The loan is 102.
Even at the 93% tier, cost gives about 111.6. That is still just under the ARV cap, so cost still controls. Light rehab on a decent spread is a cost-cap deal.
Example 3: Heavy rehab. Purchase is 100 and rehab is 60, so cost is 160. ARV is 190.
- At the 90% tier, the cost cap gives 144.
- The ARV cap gives 75% of 190, or 142.5.
- The ARV cap is lower, so it binds. The loan is 142.5.
Effective leverage falls to roughly 89% of cost. The borrower covers 17.5 points in total, which is 1.5 more than the 16 points the 90% tier implies. The experience tier did not fail here. The ARV cap simply sat below it.
The pattern is easy to remember. Thin spreads between cost and ARV push the ARV cap into control. Wide spreads leave the cost tier in charge. Many files get derailed when the investor’s ARV is optimistic and the lender’s appraiser lands lower. The ARV cap shrinks with it, and the borrower’s cash gap grows.
Minimum and Maximum Loan Size
Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Smaller balances vary by lender. Some lenders set a floor because small loans cost about the same to document and service as large ones.
For a single-family home, the ceiling rarely controls. Value does. A house worth a few hundred thousand dollars never gets near the program maximum, because the leverage caps hold the loan far below it. The ceiling matters mostly on high-value homes and on multi-property deals.
A bigger loan does not mean a looser file. Large balances usually bring more scrutiny of the exit and the borrower’s liquidity.
Single-Family Specifics
Single-family is the cleanest collateral for sizing. Comparable sales are easiest to find, and the appraiser can usually support an ARV with recent nearby sales. That matters because the ARV cap is only as good as the comps behind it.
Four things move the number on a single-family file:
- Condition. A property that needs structural work leaves more room for cost overruns, so lenders get more careful.
- Value tier. Dollar caps scale with local value. The same percentages produce very different loan amounts in a low-priced market and a high-priced one. That is why a national “maximum” means little for one house.
- Property type. Detached homes are the baseline. Condos and townhomes bring extra review of the association and the project, and eligibility varies by lender. One-to-four-unit property is within scope, but not every lender prices all of those the same.
- Marketability. A house that sells or rents easily supports a more confident exit. A unique property in a thin market gets less leverage.
Why the Advertised Maximum Is Not Your Maximum
The top tier is reserved for experienced investors. Marketing pages show the best case. The number that reaches a borrower depends on several adjustments, and most of them push down, not up.
| Factor | Direction | What it does |
|---|---|---|
| Completed projects | Up with more | Moves the cost tier from 85% to 90% to 93% |
| ARV support | Down if weak | Shrinks the ARV cap |
| Credit score | Down if low | 620 is the minimum; extra conditions apply below 660 |
| Scope of work | Down if heavy | Raises overrun risk and lender caution |
| Exit clarity | Up if clear | A strong payoff path supports full leverage |
Credit matters less here than on a conventional loan, but it is not ignored. Underwriting stays asset-based, meaning property, plan, and exit. First-time investors qualify at the lower leverage tiers. Nobody is promised approval, and a lender can decline a file that misses its own review.
How Rehab Holdbacks and Draws Enter the Sizing
The full loan does not usually arrive at closing. Funds split into an initial advance and a rehab holdback. The initial advance covers the purchase. The holdback pays for work in draws.
The sequence on most files looks like this:
1. The borrower closes and the lender funds the purchase share.
2. The borrower starts the work, often fronting early costs.
3. An inspector confirms completed work.
4. The lender releases a draw against that work.
5. The cycle repeats until the scope is done.
This affects cash planning. Up to 100% of the rehab budget funds through draws, but the borrower must carry the work between draws. A borrower who forgets that carries a cash crunch in the middle of the project, not at closing.
It also affects the exit. The final loan balance includes drawn funds, so the payoff the takeout lender must cover grows as the project advances. Tax treatment varies; consult a qualified professional.
Investor Bridge Loans vs. Home-Sale Bridge Loans
Search results on this topic mix two different products. A home-sale bridge helps a homeowner buy the next house before the old one sells. This article covers the other kind: business-purpose financing on an investment property.
Investor bridge loans are designed for non-owner-occupied property, and they are reviewed differently from a standard owner-occupied mortgage. Under Regulation Z’s business-purpose exemption, the lender decides in each case whether the loan’s primary purpose is business. Compliance commentary also makes the point that the test is the purpose of the loan proceeds, not the label “investment property”. For that reason, the program does not extend to owner-occupied homes.
Can You Raise Your Limit?
Yes, within limits. Some levers are real. Others are myths.
Real levers:
- More completed projects. Documented finished projects move you up the cost tiers.
- A stronger ARV package. Recent nearby sales, a clear scope, and a budget the appraiser can verify keep the ARV cap from dropping.
- More cash in. Extra equity can close a gap the caps leave open. It does not lift the caps themselves.
- A cleaner exit. A named payoff path supports the lender’s willingness to go to the top of its range.
- Splitting the project. Very large deals sometimes work better as separate loans on separate properties.
Myths:
- A larger down payment does not erase the ARV cap or the credit floor.
- A bigger rehab budget does not raise the loan if the ARV cannot support it.
- Asking for a higher amount does not move a lender past its own caps.
Where the General Rule Breaks
The lesser-of formula is clean. Real files bend it in a few named spots.
- Cash-out and rate/term refinances. These use a lower cap, typically up to 65% of value, because there is no purchase cost to anchor the loan.
- Ground-up construction. Typically up to 90% of cost and 75% of completed value at 3+ completed projects. Construction runs to 10 units, beyond the one-to-four-unit scope of other products.
- First-time borrowers. They qualify at the lower tiers. A first-timer rarely sees the top tier, even with strong credit.
- Properties outside scope. Owner-occupied homes, land and lots, commercial, industrial, and hospitality are not on the sheet.
- Larger deals. Loans above the standard range can be considered by exception, with extra review.
Planning the Exit Before the Bridge Closes
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 compares rent to the full monthly obligation, which includes principal, interest, taxes, insurance, and any association dues. That obligation is larger than interest-only bridge carry.
Two limits therefore interact. A bridge sized at the top of its range can exceed what a takeout loan will repay. The takeout lender uses its own appraisal and its own rent figure, not the investor’s ARV estimate. Clearing 1.00 coverage is also not the same as positive cash flow. Repairs, vacancy, management, and utilities sit outside that calculation.
Choose the exit path before the bridge closes. Lendmire’s complete DSCR loans guide covers how takeout loans are sized.
Common Sizing Mistakes
Most failed sizing comes from a short list of errors:
- An optimistic ARV. The lender’s appraiser sets the figure. If yours is higher, the loan follows theirs.
- Confusing LTV, LTC, and LTARV. Quoted percentages mean different things depending on the base.
- Forgetting the carry budget. Interest-only payments run for the whole project, and holdbacks arrive after the work.
- Underestimating cash to close. The gap between loan and total cost, plus closing costs, is the real number to plan around.
- Planning the exit last. A bridge that cannot be repaid is a bad bridge, whatever its leverage.
A short self-check before calling a lender:
1. Write down purchase price, rehab budget, and a conservative ARV.
2. Add purchase and rehab to get total cost.
3. Multiply cost by the tier that matches your completed projects.
4. Multiply ARV by 75%.
5. Take the lower number. That is your realistic ceiling.
6. Subtract it from total cost. That gap is the cash you bring.
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 these loans through select lenders in its wholesale network across 41 markets, including Washington, D.C.
Frequently Asked Questions
What is the largest hard money bridge loan available on a single-family home?
Programs in the network typically lend up to $5,000,000, with larger loans handled by exception. For one house, value usually controls long before the ceiling does. Leverage caps keep the loan well under the program maximum on most single-family properties. Terms and amounts vary by lender, property, and experience.
Can a first-time investor get the maximum leverage?
Usually not. Fix-and-flip leverage is tiered by documented completed projects: 85% of project cost with fewer than two, 90% at two or more, and 93% at five or more. First-time investors qualify at the lower tiers, and every tier is capped at 75% of after-repair value.
Does the loan include the rehab budget?
Yes, in draws. Up to 100% of the rehab budget can fund as work is completed and inspected. The borrower fronts early costs and is reimbursed against invoices. That 100% figure applies to the rehab budget only, not to the purchase price.
Does credit score change the loan amount?
It can. A 620 score is the typical minimum, with additional conditions below 660. Underwriting is asset-based, so property, plan, and exit carry the most weight. Credit mainly affects whether a lender will consider the file and at which leverage tier.
What happens if my after-repair value comes in low?
The 75% ARV cap drops with it, and the loan shrinks. On a heavy-rehab file, the ARV cap can sit below the cost cap, which raises the borrower’s cash gap. Supporting the ARV with recent nearby sales is the best protection.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 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. CFPB, Regulation Z §1026.3, Exemptions
2. 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: Is a Hard Money Fix-and-Flip Loan Worth It on a Single-Family Home? · Hard Money Fix-and-Flip Loan Limits for a First-Time Investor · Hard Money Loan Credit Reporting Rules for Personal Credit
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
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.