Choosing between a bridge loan and a fix and flip loan comes down to one question: how much work does the property need?
Pick the wrong financing and you'll slow your project down, increase costs, and create unnecessary friction with your lender. Here's how to match the loan to your strategy.
Bridge loans are designed for acquisition and light repositioning, not heavy construction. These short-term loans (typically 12-24 months with interest-only payments) allow investors to move quickly on properties that are already stabilized or need minimal work.
Bridge loans work best when you're acquiring a property with tenants in place, or one that can be rented quickly after minor cosmetic updates. The exit strategy is usually a refinance into permanent financing like a DSCR loan, or a quick resale if market conditions align.
The real advantage is speed. When you need to close fast to win a deal in a competitive market, bridge financing gives you an edge conventional loans can't match.
Fix and flip loans are built for properties that require significant rehab before resale. These loans bundle acquisition and renovation financing into one package, typically with 12-24 month terms and draw schedules tied to construction milestones.
The key difference is that fix and flip loans assume you're doing real work – new kitchens, bathroom renovations, structural repairs, or full gut rehabs. Lenders release rehab funds based on inspections as the project progresses, so you're not fronting all renovation costs upfront.
The exit strategy here is almost always resale. You're buying distressed, fixing it up, and selling within 12-18 months. If your plan is to hold the property long-term, a bridge loan that transitions into a DSCR refinance makes more sense.
Lenders evaluate these loans differently because the risk profiles aren't the same.
Bridge loan underwriting focuses on current asset value and condition, borrower liquidity and experience, and whether you can refinance or sell quickly once the property is stabilized.
Fix and flip loan underwriting focuses on detailed scope of work, contractor experience validation, and after-repair value analysis to confirm the projected value is realistic. Lenders also evaluate whether the renovation timeline is feasible based on the scope and your team's track record.
Bridge loans move faster because there's less to validate. Fix and flip loans take longer because lenders need confidence that the renovation plan and exit strategy will work as projected.
The best loan isn't the one with the lowest rate. It's the one that fits your timeline, exit strategy, and project scope.
Choose a bridge loan when the property needs minimal work, you're planning to refinance into long-term financing after stabilization, you need to close quickly to secure the deal, or the property is already generating income.
Choose a fix and flip loan when the property requires significant renovation, your exit strategy is resale within 12-18 months, you need financing for both acquisition and rehab costs, and you're working with an experienced contractor who has a detailed scope of work ready.
At Lendyx, we match capital to your strategy instead of forcing your deal into a product that doesn't fit.
Our bridge loans offer up to 80% LTC and 75% LTV with 12-24 month terms and closings in 5-10 business days. Our fix and flip loans provide up to 95% LTC and 75% ARV with rehab draws released quickly after inspections and closings in 7-10 business days.
Both products include the same commitment: if we commit, we close.
Apply in minutes. Close your loan quickly.
