In the fast-paced world of Texas commercial real estate, closing deals quickly can set investors apart. That's where a bridge loan comes into play: a short-term, asset-based financing solution that helps investors secure properties fast, then refinance or sell once longer-term money is in place.
Why Choose a Bridge Loan in Texas?
Rapid Approval
Close in under 7 days—vital for hot markets like Houston or Dallas.
Flexible Terms
Typically 6–24 months, interest-only payments available.
Up to 75% LTV
Equity-rich projects benefit most from higher loan-to-value ratios.
Minimal Underwriting
Asset-backed—less emphasis on credit scores or income verification.
Typical Use Cases
- Fix-and-flip commercial renovations
- Distressed property acquisitions
- Timing bridge until SBA financing is approved
- Property repositioning or lease-up phases
- Quick market opportunities
- Construction-to-permanent transitions
Key Requirements
- 20–30% borrower equity or down payment
- Clear exit plan (sale/refi in 6–18 months)
- Experienced sponsor or property manager
- Proof of income potential (current/tentative leases)
- Property appraisal and market analysis
- Borrower financial statements
Pros & Cons Compared to Traditional Mortgage
✅ Advantages
- Quick capital deployment
- Structuring options for interest-only period
- Less red tape than traditional bank loans
- Competitive edge in bidding wars
- Flexible underwriting criteria
- No prepayment penalties
⚠️ Drawbacks
- Higher interest rates (7–12%)
- Shorter repayment term creates pressure
- Additional fees (origination, exit)
- Need for disciplined exit strategy
- Market risk during short term
- Requires more equity upfront
Ready to Move Fast on Your Next Deal?
If you're targeting a high-return opportunity but need fast funding, a bridge loan could be your answer. Our Texas lending experts are standing by to help structure a solution tailored to your timeline and strategy.
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