A bridge loan gives Texas real estate investors the funds to acquire, stabilize, or reposition property before arranging permanent financing or completing a sale. Kestrel Lending is a Texas hard money broker that shops your bridge loan to 20+ wholesale lenders and helps you secure terms that work for your timeline. You receive term sheets within 24 hours. Most bridge loans in Texas close in 7 to 14 business days. Get your rate in 24 hours.
Most "bridge loan" search results describe homeowners who sell your home and buy a new home or new house before the old house sells. That is a consumer bridge loan (companies like Homeward and Knock offer similar consumer products): a short term financing option meant to bridge the gap between selling your current home and moving into a new home. People use those loans to avoid carrying two mortgages or renting temporarily during transitional periods while waiting for their current home sells. We do not offer that product.
Kestrel Lending brokers business-purpose bridge loans on investment property only. Every loan we place is secured by non-owner-occupied real estate: residential properties, multifamily buildings, commercial real estate, and value-add projects. We never finance a primary residence or a new home purchase where the borrower plans to move in.
If you need to finance a current home transition, a traditional mortgage lender, a new mortgage through your bank, or a home equity loan can provide access to funds. We provide guidance on which path works for your situation. But if you are a real estate investor who needs short term financing to close a deal quickly, our bridge loan programs are built for investors who need to finance, close, and sell or hold on their terms.
A bridge loan is a short term loan (also called gap financing) (typically 6 to 18 months in duration) that provides quick access to funds so investors can move quickly on time sensitive deals without waiting for a traditional mortgage or long term financing. The bridge loan provides a financial bridge between the acquisition and the exit: sell, refinance into permanent financing, or lease up to secure cash flow. Bridge loans tend to carry generally higher interest rates than conventional loans because lenders accept more risk and provide funding faster. Flexibility helps investors more than a low interest rate when you need to close a transaction before sellers agree to another offer, and the cost is far more expensive if you miss the opportunity than a few months of higher rates.
Here is how a bridge loan works. You find a deal, submit it to Kestrel Lending, and we shop it to bridge loan lenders on our panel. Lenders compete to offer the best terms. You receive competing offers, review each offer, and choose the term sheet with the best interest rate, points, and loan to value. We coordinate closing and funds arrive in under two weeks. You use the bridge loan proceeds to acquire or improve the property, then repay the loan when you sell or secure long term financing.
Bridge loan lenders underwrite the property, not the borrower's income or DTI. Most lenders have the following requirements:
There is no hard credit check or credit pull (a soft credit inquiry) to receive a quote. If the deal qualifies based on the property, the bridge financing moves forward fast. Most borrowers get approved within 24 to 48 hours. Understand that lenders evaluate the deal based on property features, listing price or appraisals, and the potential for a profitable exit. The potential return determines the terms. No extensive personal information is required. The requirements are straightforward compared to bank requirements.
Texas bridge loans solve a specific problem: the opportunity is here now, but on the other hand, long term financing is not ready. Here are the use cases real estate investors bring to us most. Each one shows a smart way to turn short term capital into long term benefits.
You find a vacant fourplex at auction in a competitive market. No bank will fund it because the property needs a new roof and other work. A bridge loan provides the funds to finance the new purchase and gives you 12 months to renovate, lease up, and then qualify for a DSCR loan or mortgage. This is the most common bridge financing scenario for property investors in the Texas market, especially in markets like Houston and San Antonio where sellers accept offers quickly and need certainty. The convenience of closing in a week gives you an advantage over a buyer who needs 45 days from a bank.
Courthouse auctions, REO sales, and estate liquidations require proof of funds or closing within two weeks. A bridge loan gives you the capital to meet the deadline. A traditional mortgage timeline does not work for a buyer making a non contingent offer. Bridge financing provides the speed sellers need to close quickly.
When a partner wants out, a bridge loan provides funds to buy the existing equity and secure full ownership. Refinance into long term financing after. This avoids a forced home sale or stressful liquidation of the existing property and ensures a complex transaction stays intact without debt piling up.
You own one home or stabilized rental with substantial equity in your current property. A cash out refinance through a bridge loan lender lets you pull capital and sell the old one or hold it and buy a new one in a short time, not the months a bank requires. The bridge loan proceeds fund your down payment and closing costs on the next home purchase. Repay the bridge when the new purchase is stabilized and you qualify for long term loans. Many investors use this approach over two to three years or more, making each project finance the next one.
A commercial bridge loan provides funds to finance the acquisition and repositioning of commercial real estate: office conversions, retail, multifamily, and new construction. The bridge financing covers the purchase while you complete improvements and lease up the property, then transition to permanent financing. Commercial bridge loan terms are typically 12 to 24 months with interest only payments and flexible terms that lenders can extend.
Terms depend on many factors. The cost of a bridge loan depends on the lender, property type, and experience. Here is the typical range from our panel for bridge loans in Texas:
| Feature | Typical Range |
|---|---|
| Interest rate | 9.9% to 13.5% |
| Origination fee (points) | 1.5 to 3 points |
| Loan to value (LTV) | Up to 75% of as-is value or ARV |
| Loan term | 6 to 18 months |
| Payment structure | Interest only (some lenders let you defer payments for 1 to 3 months) |
| Prepayment penalty | None |
| Loan amount | $75K to $3M |
| Closing speed | 7 to 14 business days |
| Collateral | Non-owner-occupied property (1-4 unit, multifamily, commercial real estate) |
Most bridge loan programs use interest only payments with a balloon payment at the end of the term. The loan amount is based on the property value. Closing costs typically include the origination fee, appraisal, title insurance, and third-party fees. On a $300,000 bridge loan at 2 points, the total cost is roughly $6,000 in origination plus $2,000 to $3,500 in fees. Note that bridge financing is more expensive than a traditional mortgage, but the cost is worth it when the opportunity would not exist otherwise. In addition, there is no prepayment penalty, so you owe nothing extra if you repay early.
Here is an example. An investor finds an 8-unit multifamily in San Antonio at $640,000. Four units are vacant and the property needs $80,000 in improvements. No bank will touch it. A bridge loan helps solve it:
| Item | Amount |
|---|---|
| Purchase price | $640,000 |
| Bridge loan (70% LTV) | $448,000 |
| Borrower equity + closing costs | $202,000 |
| Rehab budget | $80,000 |
| Interest rate | 11.5% |
| Monthly payment (interest only) | $4,293 |
| Origination fee (2 points) | $8,960 |
| Loan term | 12 months |
| After-repair value (ARV) | $880,000 |
| Exit: new mortgage (DSCR at 75% LTV) | $660,000 |
Total cost over 12 months: roughly $60,476 in interest payments plus origination fees. The investor applies the new mortgage proceeds to repay the bridge loan and recover capital. The result: a stabilized building, positive cash flow from rent, and $220,000 in equity, thousands more than the cost of financing. That is why expert investors use bridge financing when the numbers work in their favor.
Many people searching for bridge loan alternatives are comparing a bridge loan, a home equity loan, or a HELOC. Here is how these financing solutions compare.
| Feature | Bridge Loan | Home Equity Loan | HELOC |
|---|---|---|---|
| Loan type | Short term loan to finance investment property | Second mortgage, consumer finance | Home equity line, revolving credit |
| Typical term | 6 to 18 months | 5 to 30 years | 10-year draw, 20-year repay |
| Interest rate | 9.9% to 13.5% | 7% to 10% (varies by credit) | Prime rate + 1% to 3% |
| Payments | Interest only | Fixed monthly payment | Interest only during draw period |
| Closing speed | 7 to 14 business days | 30 to 45 days | 30 to 60 days |
| Collateral | The investment property | Your current home (first mortgage or second mortgage) | Your current home or existing home |
| Risk | Only the investment property | Your home is at risk of foreclosure | Your home is at risk |
| Best for investors? | Yes: no sale contingency, keeps your house safe and gives you peace of mind | Only if you have home equity and accept the risk to your primary residence | Helpful if you own your home with substantial equity and need ongoing access to capital |
A home equity loan or HELOC can finance a new home purchase for investors who own their current home with existing equity and want to borrow against it. The interest rate is lower, but closing takes weeks, and your old house (not the investment) is the collateral. If things go wrong, you could lose your house, That makes a bridge loan the smarter choice: it keeps risk on the investment property, closes faster, and avoids two mortgages on your primary residence on your primary residence. A piggyback loan, swing loan, or similar product may work depending on your situation, but neither is common for real estate transactions on investment property.
We do not broker home equity loans or HELOCs. For investors who cannot sell your home quickly or do not want to pledge their current home, a bridge loan is the right solution. Contact us to review your options and start the process and navigate your options.
We are not a direct lender. We specialize as a Texas hard money broker who shops your bridge loan to private lenders that offer competitive rates and fund fast. One application, multiple competing term sheets, and a dedicated loan officer with depth of experience closing hard money bridge loans across every Texas market from Houston to Dallas. Our team provides real estate financing services and support to investors in Houston, San Antonio, Dallas, Fort Worth, and Austin, and we connect you with bridge loan lenders across TX. Reach out today.
Explore our fix and flip loans, check current Texas hard money rates, or learn how our process works. Whether you are making your first investment or you have closed dozens of real estate deals, our bridge loan programs offer the financing solutions you need. Apply today, submit your project, and receive a term sheet before your next opportunity disappears.
Most Texas bridge loans close in 7 to 14 business days when the file is complete. Conventional loans typically take 30 to 45 days. For time sensitive deals, a bridge loan helps investors move forward without waiting.
Most lenders require 10% to 25% of the purchase price. Some bridge loan programs accept cross-collateral from an owned property. Ensure you have enough cash for the down payment plus closing costs. Contact our team to learn the requirements and find what you qualify for.
Yes. Commercial bridge loan programs cover a variety of property types including office, retail, industrial, and mixed-use properties across Texas. Most lenders fund commercial real estate from $250K to $3M with terms of 12 to 24 months.
The risks involved center on the exit. If you cannot sell or secure permanent financing before maturity, you may pay extension fees or face foreclosure. Higher rates mean the total carry cost adds up. Reduce risk with protections like committing to a realistic exit strategy, keeping a conservative budget, and holding reserves and keeping a store of capital. The drawbacks are real, but the pros and benefits outweigh the cons: bridge loans are helpful tools for investors who execute on time.
A fix and flip loan is specifically designed for investors who buy, renovate, and sell a property for profit. A bridge loan is a broader financing option: it can fund acquisitions, partner buyouts, cash-out scenarios, and stabilization plays where the exit is a refinance, not a home sale or quick sale. The structure and exit strategy determine which bridge loan programs fit.
Yes. What matters is the property location. Real estate investors from Colorado Springs, Tennessee, California, and other states regularly use Texas bridge loans to buy a new property in our market. Texas is a strong market for bridge loan investing, and we connect out-of-state investors with our lender panel, making it easier to invest across state lines.
If you are in the process of selling your current home and need capital for a new purchase before the house sells, there are two main options. A home equity loan provides funds based on your existing home's equity but puts your existing home at risk. A bridge loan secured by the new investment property keeps your home safe. Most property investors prefer bridge financing because it avoids a sale contingency, avoids carrying two mortgages, and eliminates the uncertainty and stress of selling your current home on a deadline, waiting for your current home sells before you can move forward. Some homeowners consider taking a non contingent offer on the old home to bridge the gap, and sell quickly.
Bridge loan alternatives include hard money bridge loans through different lenders, a cash out refinance, a second mortgage, seller financing, or a current mortgage adjustment. For long term loans on stabilized rentals, a DSCR loan is a better solution. For short term bridge loans in Texas where you need to buy and close before the current one sells, hard money bridge loans through Kestrel Lending offer the fastest path. Apply now and we will have multiple offers back within 24 hours.
Ready to close your next real estate deal with a Texas bridge loan? Get your rate in 24 hours. Start now, receive offers from multiple lenders, and secure a term sheet today.
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