Buy and improve
A value-add acquisition needs a defined improvement budget and operating plan. Show how renovation or management changes are expected to affect income.
Acquisition · Value-add · RefinanceCommercial bridge loans.
Commercial bridge loans.
With a credible way out.
Short-term financing for a property moving from today’s condition to a sale or a sustainable long-term loan. Start with what changes during the bridge period and how the debt gets repaid.
The short answer
Commercial bridge financing
A commercial bridge loan can provide interim funding for acquisition, renovation, lease-up or a refinancing transition. Stonehaven arranges financing through third-party capital providers and evaluates the business plan and exit with the initial request. A near-term maturity alone does not establish a viable refinance.
- Uses to review
- Acquisition, value-add, lease-up and maturity transitions
- Sizing focus
- Current cash flow, collateral, budget and exit proceeds
- Coverage
- Commercial programs nationwide, subject to state availability
What is the bridge meant to accomplish?
Finish leasing
A completed property may need time to reach dependable collections. Separate signed leases, occupied space, concessions and actual receipts.
Address an approaching maturity
Start with the payoff date, present debt and current operating performance. A new loan still needs a supported repayment source, even when the deadline is urgent.
Bridge or permanent financing?
The right path depends on the property’s condition and the purpose of the loan. These are planning distinctions, not universal product rules.
| Question | Bridge review | Permanent-loan review |
|---|---|---|
| What is being financed? | A transition or a defined business plan. | A longer-term hold supported by the property. |
| Which income matters? | Current performance plus supportable improvement assumptions. | Underwritten income and debt-service capacity. |
| What repays the loan? | A sale, refinance or another specifically supported exit. | Operating cash flow with the agreed amortization and maturity structure. |
| What can derail it? | Delayed work, slower leasing or an exit-proceeds shortfall. | Insufficient qualifying income, value or other underwriting requirements. |
Transparent assumptions
Example: test the refinance before taking the bridge
Hypothetical commercial planning exercise, not a lender quote. Assume an eventual $2.3M payoff, a 1.25x target DSCR and an 8% annual debt constant for illustration only. These are not Stonehaven program terms or rate quotes.
- Assumed annual underwritten NOI
- $240,000
- NOI ÷ illustrative 1.25x DSCR
- $192,000 annual debt-service capacity
- Debt capacity ÷ illustrative 8% debt constant
- $2,400,000 income-based loan size
- Assumed bridge payoff
- $2,300,000
- Initial difference
- $100,000 before closing costs and other constraints
If underwritten NOI is 10% lower, at $216,000, the same calculation supports $2.16M. That is $140,000 below the assumed payoff before refinancing costs.
The debt constant expresses annual debt service as a percentage of the loan amount. It is not the interest rate. The illustration isolates income sizing; appraisal limits, reserves, lender cash-flow adjustments and other requirements can reduce proceeds further.
A bridge should have room for a realistic adverse outcome. Identify whether extra equity, a lower initial balance, an amended plan or a different exit is needed before treating a projected refinance as certain.
Work backward from repayment
Establish today’s position
Reconcile the rent roll, collections, operating statement, debt and any near-term obligations. Label forecasts separately from actual results.
Define the transition
Budget the work, leasing costs, reserve needs and schedule. Decide who is responsible for execution and what evidence demonstrates progress.
Stress the exit
Test weaker income, lower sale proceeds and a later completion date. Read extension conditions and balloon-payoff obligations before choosing a structure.
What supports an initial bridge review
- Property location, asset type, current ownership and acquisition or refinance purpose.
- Current loan balance, payoff statement if available, maturity date and any known prepayment terms.
- Current rent roll, trailing operating statement and occupancy or collection details.
- Renovation or leasing plan, line-item budget, schedule and reserves.
- Sponsor background, available liquidity and any material ownership or title issues.
- Financing request and a sale or refinance plan with its supporting assumptions.
Questions before you start
Can bridge financing pay off a maturing commercial loan?
It may, subject to the property, sponsor and new lender’s requirements. Provide the maturity date and payoff early. Sufficient collateral alone does not guarantee the required proceeds or approval.
Can I bridge a rental property and refinance to DSCR?
Potentially, but the rental and property requirements of the intended takeout must be reviewed separately. One-to-four-unit rental underwriting differs from commercial NOI-based financing. We can identify the appropriate review path.
Does a completed building have to be fully leased to refinance?
Program requirements vary. Some permanent executions consider properties during lease-up, but that does not make every unfinished or vacant project eligible. Compare both paths using the property’s actual stage and documentation.
Will you give me a term sheet in under an hour?
Our aim is initial deal feedback in under one hour after your inquiry reaches the team. A term sheet, credit decision and closing require additional review. We follow up by text.
Project review
Request a commercial bridge review
Share the basics. We follow up by text and aim for initial deal feedback in under one hour. Initial feedback is not credit approval.
Keep account numbers, tax records and private documents out of this public form. We can arrange a secure next step for documents.
Related guides and examples
Bridge versus permanent financing
Review the financing stages and the role of the exit.
Explore →Multifamily financing
Compare commercial options for apartment properties.
Explore →Investment-property refinance example
Company-reported DSCR refinancing of hard-money debt. This rental example is distinct from commercial bridge underwriting.
Explore →Sources and editorial standards
The OCC explains that refinancing can be constrained by weaker cash flow, collateral values and available credit. Fannie Mae also describes a specific near-stabilization multifamily execution. That program is a source example, not confirmation that any submitted property qualifies or that Stonehaven is a Fannie Mae DUS lender.
Updated September 20, 2026. Editorial standards · Meet the team
Prepare the next decision
Test the commercial refinance cash-in gap before maturity by comparing replacement proceeds with the payoff, transaction costs and required reserves.
If the investment needs improvements, our first rehab loan guide connects the scope, contractor payments and draws with the planned sale or refinance. Use the investment deal checklist before comparing proposals.
The exit needs its own review. Compare bridge versus permanent financing and use the commercial refinance guide to check how payoff and costs affect replacement financing.