Investor Guide
Bridge Loans in Florida: The Investor's Guide to Gap Financing
A bridge loan in Florida is a short-term, asset-based loan that lets investors and homeowners move on a new property before the old one sells, refinances, or stabilizes. In Northeast Florida — where good deals don't sit on the market — bridge financing is often the difference between winning an offer and watching it go to a cash buyer. Here's how Florida bridge loans work, what they cost, and when they make sense versus traditional hard money or a DSCR refinance.
What Is a Bridge Loan?
A bridge loan is a short-term real estate loan, typically 6–24 months, secured by the subject property (and sometimes a second property held as additional collateral). It is designed to be paid off through a defined exit: a sale, a long-term refinance, or stabilization of a value-add asset. Bridge loans are business-purpose, asset-based, and underwritten on equity and exit — not on personal income.
Bridge Loan vs. Hard Money Loan
In Florida the two terms overlap heavily — most bridge lenders are hard money lenders and vice versa. The practical distinction is intent and property condition:
| Feature | Hard Money | Bridge Loan |
|---|---|---|
| Primary use | Fix & flip, rehab | Gap financing, buy-before-sell |
| Property condition | Distressed / needs work | Stabilized or near-stabilized |
| Loan basis | ARV (after-repair value) | As-is value |
| Term | 6–18 months | 6–24 months |
| Typical exit | Resale after rehab | Sale of other property or DSCR refi |
How Florida Investors Use Bridge Loans
- Buy before you sell. Close on a new Jacksonville property without a contingent offer, then pay off the bridge when your existing home or rental sells.
- Cross-collateralized purchases. Use equity in an existing Florida property as additional collateral to finance up to 100% of the new purchase.
- Season-to-refinance. Hold a recently rehabbed or newly acquired rental through a 6–12 month seasoning period before a DSCR refinance.
- Auction and off-market purchases. Close in 7–14 days on Duval, St. Johns, or Clay County auction wins where conventional financing isn't possible.
- 1031 exchange backstop. Move on a replacement property within IRS deadlines while your relinquished property closes.
- Commercial repositioning. Cover the gap between acquiring a small multifamily or commercial asset and stabilizing it for permanent financing.
Florida Bridge Loan Requirements
- LTV: Up to 70–75% of as-is value (purchase or rate/term); 65–70% on cash-out.
- Credit score: 660+ typical; some asset-heavy lenders go to 600.
- Rates: 9.99%–12.5% interest-only, depending on leverage and credit.
- Points: 1–3 points at origination.
- Term: 6, 12, 18, or 24 months — extensions usually available for a fee.
- Exit strategy: Documented sale, refinance takeout, or stabilization plan.
- Entity: Close in an LLC for business-purpose treatment.
- Property types: 1–4 unit residential, small multifamily, mixed-use, condos, and select commercial in Northeast Florida.
Closing Speed in Northeast Florida
Closing speed is the entire reason most investors use a bridge loan instead of conventional financing. In Duval, St. Johns, Clay, and Nassau counties a well-run bridge file closes in 7–14 calendar days. The fastest closings share three things: an entity already formed and in good standing with Florida Sunbiz, a clean title commitment ordered on day one, and an interior BPO or appraisal that can be turned around in under a week.
What a Florida Bridge Loan Actually Costs
On a $400,000 Jacksonville purchase financed at 70% LTV ($280,000 loan) at 10.99% interest-only with 2 points, you're looking at roughly $5,600 in origination, ~$2,564/month in interest payments, plus standard Florida closing costs (title, doc stamps on the note at $0.35 per $100, intangible tax at 0.2% of the mortgage, recording, and lender legal). Always run a full HUD/CD estimate with your lender before locking — Florida-specific taxes add up.
When a Bridge Loan Isn't the Right Tool
Skip the bridge if (a) you have time to qualify for conventional or DSCR financing, (b) your exit strategy is uncertain or longer than 24 months, or (c) the property needs heavy rehab — in which case a true hard money / fix-and-flip loan with rehab holdbacks will be structured better for the project.
Florida Bridge Loan FAQs
What is a bridge loan in Florida?+
A bridge loan is a short-term, real estate–secured loan (typically 6–24 months) that 'bridges' the gap between buying a new property and selling, refinancing, or stabilizing another. In Florida, investors most often use them to close fast on a new acquisition before their existing property sells or refinances.
How is a bridge loan different from a hard money loan?+
There's heavy overlap — all bridge loans in Florida are essentially hard money. The difference is intent. A hard money loan is usually tied to a fix-and-flip or rehab business plan. A bridge loan is more often used for gap financing on a stabilized or near-stabilized property: buying before selling, covering a seasoning period, or holding while a DSCR refinance is processed.
What are typical bridge loan rates and terms in Florida?+
Expect rates around 9.99%–12.5%, 1–3 points in origination, 6–24 month interest-only terms, and LTVs up to 70–75% of as-is value (or 65–70% on cash-out). Most Florida bridge lenders can close in 7–14 days.
How much can I borrow on a Florida bridge loan?+
Most lenders cap at 70–75% LTV on the as-is value of the subject property. On a cross-collateralized bridge (using equity in another Florida property), you can sometimes finance 90–100% of the new purchase price.
How fast can a bridge loan close in Jacksonville?+
Experienced Northeast Florida bridge lenders routinely close in 7–14 days. With a clean title, current appraisal or BPO, and an LLC already formed, 7-day closings are common.
Do I need W-2 income or tax returns for a bridge loan?+
No. Bridge loans are business-purpose, asset-based loans. Lenders qualify on the property's value, your equity, credit (typically 660+), and an exit strategy — not personal income docs.
What's a typical exit strategy for a Florida bridge loan?+
The two most common exits are (1) selling the bridged property within the loan term, or (2) refinancing into a long-term DSCR or conventional loan once the property is leased, seasoned, or stabilized.
Can I use a bridge loan to buy before I sell my current home?+
Yes. This is one of the most common use cases in Florida — pull equity from your existing property (or cross-collateralize) so you can close on the new home without a contingent offer, then pay the bridge off when your old property sells.
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