A Short-Term Loan From a Private Lender Secured By Real Estate or Collateral

In today’s fast-paced real estate market, things aren’t always as straightforward as they seem. Sometimes it takes longer than expected for properties to sell or for construction to finish on new developments and renovations. Or you may have a short amount of time to purchase a property. In these situations, a commercial mortgage bridge loan may be exactly what you need, but you probably have many questions about what they are, who qualifies for one, and how much you can borrow. Keep reading to find out everything you need to know about commercial mortgage bridge loans, when and when you shouldn’t get a bridge loan, and how Titan Funding can help you meet your real estate funding needs.

What Are Commercial Mortgage Bridge Loans?

Commercial bridge loans are short-term loans from private lenders that are secured by commercial real estate or collateral. The property you plan to purchase or refinance is usually the collateral. Considered a type of hard money loan, they provide commercial property owners with access to funds to improve their cash flow. 

Commercial mortgage bridge loans differ from conventional loans because private lenders are not required to follow stringent government lending regulations. Lenders decide their own minimum qualification requirements including minimum credit score and debt-to-income (DTI) ratio requirements. Commercial bridge loans are different in that they require collateral to secure — usually the property you’re buying.  

What Are Commercial Bridge Mortgage Loans Used For?

Generally, commercial mortgage bridge loans are used for real estate-related transactions such as purchasing or investing in property, refinancing a loan for quick cash, or making much-needed improvements and repairs to a commercial property. However, these loans provide a short-term source of capital that serve other business-related purposes including:

  • Helping businesses meet payroll and other payment obligations, including IRS liens.
  • Relocating a business.
  • Opening a new location.
  • Mergers and acquisitions.
  • Launching or expanding a product or service.
  • Buying inventory.
  • Improving cash flow.
  • Debt consolidation.

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How Do You Qualify for a Commercial Mortgage Bridge Loan?

While the qualifications for commercial mortgage bridge loans vary among lenders, most lenders look at the following criteria:

  • The property being purchased: Lenders may consider factors such as the location of the property, its condition, its appraised value, and any existing liens.
  • Your financial ability to pay back the loans: Most lenders assess your financial health by looking at several factors including your debt-to-income ratio and your debt-service coverage ratio (DSCR).
  • Your credit history: Lenders may review your credit history for derogatory marks such as bankruptcy and liens, which may suggest you are a risky borrower. However, having a low credit score does not automatically disqualify you from receiving a commercial bridge loan.

What Properties Are Eligible for Commercial Mortgage Bridge Loans?

Several types of properties can be used to secure a commercial mortgage bridge loan. Eligible properties include:

  • Industrial buildings such as those used as manufacturing centers, factories, and storage facilities.
  • Multi-family buildings that contain five or more units within one or more buildings within one community or complex.
    Multi-family buildings include apartments, condos, duplexes, and attached townhomes.
  • Mixed-use properties that host both commercial and residential use within one building or complex.
  • Retail properties such as storefronts and restaurants where goods or services are sold.
  • Offices space and office buildings.
  • Hospitality buildings such as hotels and lodging properties.

How Much Can You Borrow Under a Commercial Mortgage Bridge Loan?

Commercial mortgage bridge loan amounts can vary from as low as $55,000 to as much as $5 million. Limitations on loan amounts are usually determined by individual lenders, but most lenders will consider the appraised value of the property you’re purchasing and look at the loan-to-value ratio (LTV) or the percentage of your debt relative to the value of the property you want to purchase or refinance. Lenders tend to offer to loan up to 80% of the assessed value of the property.  

What Are the Advantages of Commercial Mortgage Bridge Loans?

Businesses and investors use commercial mortgage bridge loans when they have been denied a conventional loan, require faster access to funding, or are unable to secure funding from other sources. But there are other benefits including:

  • Fast approval process, usually within a few days.
  • Flexible terms and payment options.
  • Interest-only payments.
  • Simpler application process with less documentation required. 

What Are the Disadvantages of Commercial Mortgage Bridge Loans?

As beneficial as commercial mortgage bridge loans are, they may not be right for every business or investor. These types of loans usually carry additional appraisal, loan originator, administrative, and closing cost fees that many borrowers have not accounted for. Other disadvantages to consider are:

  • Higher interest rates and APRs are typically associated with bridge loans.
  • Repayment is required within a short period of time, usually no more than three years.

Commercial mortgage bridge loans are short-term loans that can be helpful in certain real estate and business situations. Depending on your circumstances it can help you meet your business obligations and real estate goals. Speaking with an experienced and knowledgeable commercial mortgage bridge loan specialist is the first step to securing the funding you need. If you’d like to learn more about investing in commercial real estate on your own, check out our guide on the best tips for commercial real estate investing.

About Titan Funding 

Located in Boca Raton, Titan Funding is South Florida’s premier private hard money lender specializing in providing investors and borrowers with opportunities to grow their holdings and continue their businesses. Our team of expert loan agents strives to provide exceptional service with:

  • Loan decisions in as little as 48 hours.
  • Funding received in as quickly as four days.
  • Loan amounts from $100,000 to $5 million.

Whether you need a larger commercial building for your growing business or are interested in purchasing another rental property, Titan Funding is your South Florida hard money lender. We offer several loan options to meet your real estate financing needs, including multifamily and fix and flip loans. We will work with you directly to determine the right
option based on your unique circumstances. Contact us online, or give us a call at 855-929-1134 to get started with your loan application.

Simply complete and submit this short form and a Titan team member will contact you to discuss your
investment needs.

Frequently Asked Questions - FAQ

TL;DR: Titan Funding’s commercial mortgage bridge loans are short‑term, asset‑based loans secured by commercial property or collateral. Borrowers can access between $55 000 and $5 million, with loan‑to‑value ratios up to roughly 80 %, fast approvals and interest‑only payment options.

What is private money lending?

Private money lending refers to financing provided by individuals or non‑bank entities for real‑estate investments. These loans are asset‑based rather than credit‑based and usually have short terms with higher interest rates compared with traditional bank loans.

How do I qualify for a real‑estate investment loan through Titan Funding?

Titan Funding evaluates the property’s value and the loan‑to‑value ratio rather than focusing on credit scores. Maintaining an LTV around 60 % and providing a clear plan for the investment increases your chances of approval.

What documents are needed for hard‑money loans?

Documentation typically includes proof of property ownership or purchase contracts, appraisals, and, for construction loans, detailed plans and budgets. Because underwriting is asset‑based, credit documentation is less critical than in conventional lending.

How quickly can I get funded for a property in Florida?

Titan Funding’s underwriting process usually takes about 48 hours, and approved borrowers can receive funds within four days for hard‑money, rental or bridge loans. Some commercial bridge loans provide funding in as little as 10 days.

Does Titan Funding lend to foreign nationals?

Yes. Titan Funding offers hard‑money programs for non‑U.S. citizens seeking to buy or refinance property in South Florida, using asset‑based underwriting to bypass conventional loan barriers.

What types of loans does Titan Funding offer?

The company provides various short‑ and long‑term real‑estate loans, including hard‑money and bridge loans, residential and commercial bridge loans, multifamily financing, fix‑and‑flip loans, rental property loans, ground‑up construction loans, bridge‑to‑permanent loans and cash‑out refinance options.

How does LTV work in real‑estate loans?

Loan‑to‑value ratio is calculated by dividing the loan amount by the appraised value of the property. Lenders, including Titan Funding, set maximum LTV thresholds (often around 60 % for hard‑money loans) to manage risk.

Which states does Titan Funding serve?

Titan Funding primarily serves Florida but may authorize loans in other states on a case‑by‑case basis. Applicants can discuss their specific property and location with the company’s professionals.

How do I calculate return on investment (ROI) for fix‑and‑flip projects?

ROI is determined by subtracting total costs (purchase price, renovation expenses, loan interest and fees) from the final sale price, then dividing the result by total costs. Titan Funding’s guide on calculating fix‑and‑flip ROI emphasizes factoring in loan terms and interest to evaluate profitability.

What are the risks of hard‑money loans?

Hard‑money loans carry higher interest rates (often 10 %–15 %) and points compared with traditional financing. They are short term, so borrowers need a clear exit strategy and must account for appraisal and origination fees in their budgets.

What is a commercial mortgage bridge loan?

A commercial bridge loan is a short‑term loan from a private lender secured by commercial real estate or other collateral. It provides capital to purchase, refinance or improve a property when conventional financing isn’t suitable.

How do these loans differ from conventional commercial mortgages?

Private lenders have flexibility to set credit and debt‑to‑income requirements, so even borrowers with lower credit scores may qualify. The loan uses the property as collateral, allowing faster approval and funding compared with bank loans.

What can commercial mortgage bridge loans be used for?

These loans finance real‑estate purchases, refinancing for quick cash, property improvements, and business needs such as meeting payroll, opening new locations, buying inventory or consolidating debt.

How much can a business borrow and what is the LTV limit?

Commercial bridge loan amounts typically range from $55 000 to $5 million. Lenders often offer up to about 80 % of the property’s appraised value.

What are the advantages of commercial bridge loans?

Benefits include fast approval within a few days, flexible terms and payment options, interest‑only payments and less documentation than conventional loans. These features make bridge loans attractive when timing is critical.

What are the disadvantages and costs of commercial bridge loans?

Downsides include higher interest rates, additional fees for appraisals and origination, and a short repayment period (usually under three years). Borrowers should ensure the project’s profitability justifies the cost.

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