A multifamily bridge loan is short-term financing — typically 12 to 24 months — used to acquire, reposition, or stabilize an apartment building before refinancing into long-term agency or bank debt. It is the most common entry product for value-add multifamily investors who need to move fast on an acquisition and don't have time for the 60–90 day cycle of permanent debt.
What you need before submitting
- Property address and unit count
- Purchase price (and source of funds for the equity gap)
- Current rent roll and trailing 12-month financials, if available
- A 1-page exit strategy: sale, refi into permanent debt, or sale to a different sponsor
- Sponsor track record: prior deals closed, unit count, geography
- Sources & uses for any capex or repositioning budget
Typical bridge loan terms on multifamily
- Loan size: $1M to $50M+ (sweet spot $2M–$25M)
- Rate: 8–12% interest-only, varies by LTV and sponsor experience
- LTV: up to 75–80% of purchase price or as-is value
- Term: 12, 18, or 24 months with 6-month extensions available
- Prepayment: no penalty on most programs (sell or refi early at no cost)
- Recourse: non-recourse with standard bad-boy carve-outs (fraud, waste, environmental)
Timeline from submission to funding
A clean multifamily bridge deal can close in 7 to 14 business days from term sheet. The path: term sheet in 24–48 hours after submission, appraisal ordered in week 1, title and survey in parallel, environmental Phase I if required, closing on day 10–14.
Deals that miss this timeline usually slip on one of three things: appraisal coming back below contract, environmental issues triggering Phase II testing, or sponsor financials not matching what was represented in the term sheet. A clean file means appraisal-ready property, complete sponsor docs, and a clear story on the exit.
What lenders actually underwrite
Multifamily bridge lenders care about three things in this order: the asset (location, condition, current and stabilized rents), the exit (is the refi math plausible at today's permanent debt rates and DSCR requirements), and the sponsor (track record on similar-size deals in similar markets).
DSCR is not the gating metric on a bridge loan the way it is on permanent debt, but lenders still want to see that the deal pencils to a stabilized DSCR of 1.20–1.30x at exit. If the stabilized debt yield doesn't support a refi, the bridge becomes a sale, and lenders price that risk accordingly.