A bridge loan is short-term financing (typically 6–12 months) used to acquire investment properties quickly. It “bridges” the gap between purchasing a property and securing permanent financing or selling it. Bridge loans are asset-based, meaning the property’s value not your personal income, is the primary qualification factor. At Ternus, bridge loans are designed for rent-ready investment properties that don’t require significant renovation.
Bridge loans are a type of hard money loan, but not all hard money loans are bridge loans. “Hard money” refers to the lending method: asset-based, private capital, short-term. “Bridge loan” describes the purpose: bridging the gap between acquisition and permanent financing. At Ternus, both our bridge loans and fix-and-flip loans are hard money products, but bridge loans are for stabilized properties while fix-and-flip loans include renovation funding.
For eligible properties, Ternus does not require a credit check. When a credit review is conducted (at lender’s discretion based on deal characteristics), the minimum FICO score is 660, which is lower than the 650–700 required by most competitors.
Ternus has closed bridge loans in as little as 24 hours from term sheet acceptance. Typical closings happen within 7 business days. The speed depends on title work, entity documentation, and property eligibility. No appraisal is required on eligible properties, which eliminates the most common closing delay.
Ternus bridge loan rates start at 12% APR with a 2% origination fee. Rates are fixed for the duration of the loan term. Payments are interest-only with no prepayment penalty, so you can exit the loan at any time without additional cost.
Yes, rental property acquisition is one of the most common uses of Ternus bridge loans. Investors use bridge financing to acquire rent-ready properties quickly, then refinance into a Ternus long-term DSCR rental loan once the property is leased and stabilized.
Both are short-term, asset-based loans with similar rates and terms. The key difference is property condition and renovation funding. Bridge loans are for properties that are rent-ready or need only cosmetic work, there’s no rehab escrow or draw schedule. Fix-and-flip loans include renovation financing (up to 100% of rehab costs at Ternus) with funds released through draws as work is completed.
Ternus bridge loans are available for single-family homes, duplexes, triplexes, quadplexes, and townhomes (1–4 unit residential properties). All properties must be investment properties in C3 condition or better. Ternus does not finance owner-occupied or consumer purchases. Properties must be in one of the 39 states where Ternus lends.
Yes. All Ternus loans require the borrower to be a legally established business entity: LLC, LP, or corporation with an individual guarantor. This is standard for business-purpose investment property lending and ensures the loan is structured properly for your real estate business.
At the end of the 12-month term, you have several options: sell the property, refinance into permanent financing (such as a Ternus DSCR rental loan), or request a 3-month extension (1% extension fee, subject to lender approval). There is no prepayment penalty, so most investors exit well before the term expires.
