Bridge Loan vs Hard Money: When to Use Each

A bridge loan provides short-term financing for investment property transitions. Common scenarios include: acquiring a new rental property while an existing investment property is under contract to sell, financing a stabilization period (lease-up, renovations) before converting to permanent DSCR financing, or closing quickly on a time-sensitive acquisition while long-term financing is arranged. Example: you find a $600k multifamily property and need to close in 10 days, but your DSCR loan won't be ready for 45 days. Bridge loan: LYNK Mortgage lends at 8.75% rate for up to 24 months, and you refinance into a DSCR loan once the property is stabilized and leased. Bridge loans are interest-only during the bridge period (keeping payments low), and you pay off the full balance when the exit event occurs (refinance, sale of another asset, or lease-up completion). LYNK Mortgage typically lends up to 75% LTV on the subject property.

Hard money is a category of short-term, asset-based lending that includes bridge loans but encompasses more. Hard money funds fix & flips (buy a distressed property, renovate, sell), bridge scenarios, construction takeout, and restructures. The common thread: the deal (not your personal credit) drives approval. Hard money lenders evaluate the property, your exit strategy, and deal economics. LYNK Mortgage's fix & flip loans are technically hard money: we fund your purchase and construction, you renovate and sell (or refinance to DSCR). Rate: 8.50%+ depending on deal. Term: 12 months, with extensions available.

Similarity: both bridge and hard money charge 8-10%+ rates, require 25%+ down, close in 7-10 days, and are asset-based (property-focused). Difference: bridge is typically used for property transitions (acquiring while selling, or bridging to permanent financing); hard money is broader and includes flips and longer-term holds. Another distinction: bridge might have a defined exit event (property sale closes in 60 days, or DSCR refinance is approved); hard money might be open-ended (flip takes 6-12 months, you control timeline). LYNK Mortgage offers both: bridge loans for transition scenarios and fix & flip loans for renovation deals. The terminology overlaps because they use the same underwriting framework and rate structure.