A cash-out bridge loan takes equity out of an investment property you already own, usually to fund the next purchase, a renovation, or a construction start, before a sale or a long-term refinance. Because the loan is business-purpose and secured by a non-owner-occupied property, it is underwritten on the asset and the plan, not on tax returns, which is what makes a two-week closing realistic.
Cash-out vs purchase bridge
On a single family property appraised at $2M, 75% LTV is a $1.5M loan. Any existing lien is repaid from it first, and the balance, less closing costs, is the cash you take out.
| Purchase or rate-and-term | Cash-out | |
|---|---|---|
| Maximum leverage | Up to 80% LTV | Up to 75% LTV (5 points lower) |
| Term | 12 months, interest-only | 12 months, interest-only |
| Rate | Typically 8% to 12% | Typically 8% to 12% |
| Prepayment penalty | None | None |
| Loan size | $1M to $5M | $1M to $5M |
| Fee | 1% to 2% at closing | 1% to 2% at closing |
What "clean file" means on a cash-out
Files slip on the appraisal, on title, and on an entity that is not in good standing. The loan decision itself takes 24 to 48 hours. The general timeline is in how fast a $1M to $5M bridge loan closes.
- The property is held by the LLC that borrows, or can be deeded to it before closing
- A payoff letter from the existing lender, if there is one, is ordered on day one
- Title is clear apart from that lien: no open permits, unrecorded work or judgments
- The appraiser can get access quickly, and recent comparable sales support the value
- Insurance in the LLC's name is ready to bind
- You can state the business purpose of the cash and the exit from the bridge loan
Why the exit matters more on a cash-out
A purchase bridge has an obvious story: buy, improve, sell or refinance. A cash-out has to show where the 12 months end. The two common exits are a sale of the property, or a DSCR refinance once the property is leased: up to 75% LTV on a cash-out DSCR loan, with a 30-year fixed rate available from 6% to 6.5%. If the property is already rented and you plan to keep it, going straight to DSCR can be the better product; refinancing a bridge loan into a DSCR loan explains the sequence.
Personal income is not what sizes the loan. Lenders still verify liquidity with bank statements, confirm who owns the LLC and, for US borrowers, review credit. See bridge loans without income verification.
What the cash can be used for
Business purposes only: the deposit on the next investment property, a renovation budget, the equity in a construction start, or repaying short-term debt on another investment. The lender asks because the exit now has to repay a larger balance than the property carried before, so the plan for the cash and the plan for the exit are read together. A cash-out that funds a project with its own clear exit is an easier file than one with no stated use.
Not for a property you live in
A cash-out on a house you or your family occupy is a consumer loan and outside what we arrange. The property has to be held for investment: rented, being renovated, or about to be sold. Program details are on bridge loans.
A non-US owner of a US single family investment property can take cash out on the same terms through the US LLC that holds it, with no US credit history required.