The Quick Read: On a condo bridge loan, the down payment is the gap between what you pay and what the lender will fund, and it is only the first line of the cash you need. The lender caps the loan at a share of price or project cost and, on rehab deals, at a share of after-repair value. You also fund fees, interest during the hold, reserves, and building costs out of pocket. The condo’s building review can shrink the loan even when you are a strong borrower.
- A bridge purchase without rehab typically funds up to 80% of the purchase price, so plan on at least 20% down. This varies by lender, property, and experience.
- Fix-and-flip files are sized on loan-to-cost and capped by after-repair value. Fewer completed projects means more cash from you.
- Closing costs, interest carry, dues, and reserves sit on top of the down payment.
- The building gets underwritten alongside the unit. Plan the exit before you plan the cash.
The two terms in the title describe different things. Hard money describes where the loan comes from: a private or specialty lender that sizes the loan mainly on the property. A bridge loan describes what the loan is for: covering the gap until a sale or a longer-term refinance. Put them together on a condo and you get a short-term, asset-based first lien on a non-owner-occupied unit, repaid by a sale or a refinance. These are business-purpose investor loans, so they are reviewed differently from a standard owner-occupied mortgage. Across the wholesale network Lendmire works with, the lender looks at the unit, the building, your plan, and your exit. Credit matters, but it is not the main event.
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 Does a Condo Bridge Loan Actually Fund?
It funds part of the deal, never all of it. No true 100% purchase program exists. The lender wants your cash in the property, and the exact split depends on the deal type.
Here is how the main structures typically work across the programs Lendmire places files with. Every figure varies by lender, property, and experience, and nothing here is a commitment to lend.
| Deal type | Typical ceiling | What it is measured against |
|---|---|---|
| Bridge purchase, no rehab | Up to 80% | Purchase price |
| Fix-and-flip, 5+ projects | Up to 93% | Project cost |
| Fix-and-flip, 2+ projects | Up to 90% | Project cost |
| Fix-and-flip, under 2 projects | Up to 85% | Project cost |
| Refinance, cash-out or rate/term | Up to 65% | Value |
Every flip tier is also capped at 75% of after-repair value. The lower of the two tests sets your loan. Rehab money, up to 100% of the rehab budget, comes in draws against completed work. That is a rehab figure, not a purchase figure. The top flip tier is reserved for experienced investors.
HousingWire reports that most hard money lenders ask for 20% to 30% down, which is a market-wide survey figure. For comparison, the bridge purchase tier above is up to 80% of price on an investment property, which means roughly 20% down at the strongest leverage. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
How Is the Down Payment Calculated, Step by Step?
Work backward from the loan, not forward from your savings. Here is the sequence that holds up across most files.
1. Pick the structure. Decide whether this is a straight bridge purchase or a purchase with rehab. That choice decides whether price or total project cost is the yardstick.
2. Apply both caps. On a rehab deal, test the loan-to-cost tier you fit, then test the after-repair value cap. Use whichever produces the smaller loan.
3. Find the gap. Purchase price, plus any rehab you are funding yourself, minus the loan. That is your down payment.
4. Add the costs outside the loan. Fees, appraisal, insurance, and prepaid items. These do not roll into the purchase leverage.
5. Add carry. Interest on these loans is paid during the hold, and the loan is interest-only. The longer you sit, the more it costs.
6. Add building costs. Condo transfer fees, document fees, and any assessment owed at closing.
7. Add reserves and a cushion. A bridge with no cushion is a bridge that breaks.
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Plenty of investors budget the down payment and get surprised by the rest.
The rehab float catches people too. Lenders reimburse rehab in draws after the work is done. You often front the contractor and get that money back later. Count the float as cash you need on day one, even though it returns.
What Does Your Real Cash-to-Close Stack Look Like?
Your real cash need is the down payment plus five other buckets. Treat the list below as a checklist, not a quote.
| Line item | What to plan for |
|---|---|
| Down payment | The gap after the lender’s lower cap |
| Fees and closing costs | Lender, title, appraisal, insurance |
| Interest carry | Interest-only payments for the full hold |
| Condo dues and utilities | Monthly, from day one |
| Assessments and transfer fees | Building-level, often due at closing |
| Contractor float and reserves | Cash fronted before draws are released |
Keep a contingency on top of all of it. The term runs 6 to 18 months and is interest-only, with no prepayment penalty on the programs Lendmire places. That helps if you exit early. Still, check each term sheet, because some bridge products elsewhere carry minimum-interest provisions.
TheCreditPeople reports that first-time borrowers and multi-family deals often face 30% to 40% down across the broader market. In the network programs, the same idea shows up as tiers. Fewer than two completed projects means the 85% of project cost tier, so you bring more cash than a five-project investor would.
How Does the Condo Change the Numbers?
The building can move your loan size as much as your own profile can. A lender reviews the unit and the project, and it sizes the loan to the weaker of the two. Typical items in the review:
- HOA budget and reserve levels
- Delinquent dues
- Litigation
- Investor or single-entity concentration
- Commercial space in the building
- Short-term rental use
- Master insurance
Here is how those factors usually push on your cash need.
| Factor | Usually helps | Usually hurts |
|---|---|---|
| HOA reserves | Funded and documented | Thin or missing |
| Dues | Mostly current | High delinquency |
| Owner mix | Mostly owner-occupants | Heavy investor share |
| Building use | Residential | Commercial or hotel-style |
| Paperwork | Full package, fast reply | Uncooperative HOA |
A building that fails standard agency project tests is often called non-warrantable. That is a market label, not a legal category. Condo-approval.com lists agency-style triggers such as investor concentration above 50% and commercial space above 35%. Treat those as contrast only. They show why a building gets flagged. Hard money and DSCR lenders set their own tolerances, and those do not mirror the agency tests.
Non-warrantable units usually draw lower leverage and a bigger down payment. That means more cash from you, so check the building before you commit to a price.
Pull the HOA document package early. It includes minutes, budgets, reserve statements, insurance certificates, and litigation disclosures. Collecting it from an unresponsive HOA is often the hardest part of the file.
Where Does the General Rule Break?
The 80% purchase ceiling is a best case, not a promise. Several edge cases push your cash need up.
Litigation. An active lawsuit does not automatically sink a building. Homebuyer.com notes that litigation unrelated to safety, structure, or habitability does not necessarily exclude it. Structural-safety litigation is the harshest case. Expect questions, and possibly lower leverage.
Condotels and short-term rental buildings. Lenders treat these more cautiously than standard residential condos.
Credit. The programs Lendmire places files with look for a 620 minimum score, with added conditions below 660. Underwriting stays asset-based, meaning property, plan, and exit. A lower score can still mean a bigger down payment or extra collateral.
Property type. The programs cover non-owner-occupied residential property of 1 to 4 units. Commercial, land, hospitality, and owner-occupied properties are not offered.
Loan size. Loans run up to $5,000,000, with larger by exception. Smaller balances vary by lender.
Experience. The leverage ladder rewards completed projects. A first-timer can qualify at the lower tiers, but with more cash in.
Can the Down Payment Come From Borrowed Money?
Plan on using your own funds. Lenders want your cash at risk in the deal. Borrowing the down payment elsewhere puts a second claim on your cash flow, and it defeats the point of the equity requirement. Whether any borrowed source is acceptable varies by lender, so ask before you count on it.
Keep proof of funds ready. A typical checklist:
- Recent statements for the accounts holding your cash
- A source explanation for any large deposit
- The purchase contract and any rehab budget
- Entity documents if you buy through an LLC, subject to lender program eligibility
- Your exit plan in writing
Why Plan the Exit Before the Down Payment?
Because the loan is short and the lender underwrites how it ends. A bridge usually exits one of two ways: you sell, or you refinance. Both depend on the same building you are about to buy.
If you plan to hold the unit as a rental, many investors refinance out of hard money into long-term DSCR investor loans once the property is stabilized, and Lendmire brokers that path. DSCR compares the unit’s rent to its full monthly obligation, including dues. Select programs start at 1.00 coverage, and stronger ratios open better terms. Clearing that number is not the same as positive cash flow, because repairs, vacancy, management, and capital costs sit outside the calculation. Condo dues count against coverage, so a high-dues building can pass the bridge and stumble at the refinance.
Run the condo’s building review against your exit lender’s standards before you buy. A unit that passes the bridge can still fail the exit on the same HOA issues. Keep a fallback too. If a sale slips, you want carry reserves, not a forced discount. The longer you stay on the bridge, the more it costs.
Lendmire’s complete DSCR loans guide covers the long-term side of the exit.
A Simple Planning Timeline
1. Pick a target unit and decide purchase-only or purchase with rehab.
2. Request the HOA package before you finalize price.
3. Map the loan using the lower of the cost-based and value-based caps.
4. Build the full cash stack, including carry, dues, and the contractor float.
5. Check the exit lender’s condo standards.
6. Assemble proof of funds.
7. Lock in a reserve cushion before you commit.
When Does This Strategy Fit?
It fits when you have the cash for the full stack, a clear exit, and a building that passes review. It also fits when a project needs short-term money and a clean refinance behind it.
It does not fit if your cash only covers the down payment. It does not fit when the HOA will not produce documents, or when the building looks like a litigation or concentration problem. And it does not fit if the exit depends on a lender that rejects the same building.
Tax treatment varies; consult a qualified professional.
Key Terms Defined
Hard money loan: A short-term, asset-based loan from a private or specialty lender, sized mainly on the property and the plan.
Bridge loan: A short-term loan that covers the gap until a sale or a longer-term refinance.
Loan-to-cost (LTC): The loan amount as a share of total project cost, meaning purchase plus rehab.
After-repair value (ARV): The property’s estimated value once the planned work is finished.
Non-warrantable condo: A condo project that falls outside standard agency project rules, so it needs a non-agency lender.
DSCR: Debt service coverage ratio, which compares a property’s rent to its monthly payment of principal, interest, taxes, insurance, and dues.
Frequently Asked Questions
How much down payment should I plan for on a condo bridge loan?
For a bridge purchase with no rehab, plan on at least 20% down at the top leverage, since the programs fund up to 80% of purchase price on an investment property. On a flip, the loan-to-cost tier you fit sets your cash, and the 75% ARV cap can lower the loan. Terms vary by lender, property, and experience.
Does hard money fund 100% of a condo deal?
No. There is no true 100% purchase program. Up to 100% of the rehab budget can be funded in draws against completed work, but the purchase itself requires your cash.
Is the down payment the only cash I need?
No. Add closing costs, interest carry, dues, assessments, reserves, and the contractor float. Those lines often decide whether a deal is workable.
Can a non-warrantable condo still get a bridge loan?
Often yes, but with lower leverage and a larger down payment. These buildings go to non-agency lenders, who set their own tolerances.
What should I check before I buy?
Check the HOA documents, the building’s reserves, litigation, and investor concentration. Then confirm your exit lender would accept the same building.
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 broker arranging financing through select lenders in its wholesale network, across 41 markets including Washington, D.C.
Condo buildings fail on paperwork more often than on price, so the investors who win these deals read the HOA file before they read the comps.
About Lendmire
A DSCR-focused mortgage broker, Lendmire (NMLS# 2371349) places investor financing across 41 markets — 40 states plus Washington, D.C. — with DSCR eligibility generally reviewed by the lender on property cash flow instead of traditional personal-income documentation, subject to lender guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in 2025 and 2026.
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References
1. HousingWire — Best Hard Money Lenders
2. TheCreditPeople — How Much Down Payment for a Hard Money Loan
3. Condo-approval.com — What Is a Non-Warrantable Condo
4. Homebuyer.com — Non-Warrantable Condominium
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 a Hard Money Lender Counts a Seller-Financed Down Payment · How Much Down Payment a Hard Money Lender Requires on a Flip · Bridge Loan vs Hard Money for a First-Time Investor: The Exit Plan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.