Bridge loan rates in 2026 range from 8.5% to 14% per year, depending on loan type, LTV, borrower credit, and market conditions. Unlike conventional mortgage rates — which are tied closely to 10-year Treasury yields — bridge loan rates reflect private capital markets and vary more across lenders. Here's what you need to know.
Current Bridge Loan Rates (October 2026)
As of October 2026, here are the current market ranges for bridge loan interest rates:
| Loan Type | Rate Range | Typical Term |
|---|---|---|
| Residential Bridge Loan | 8.5% – 11% | 6–24 months |
| Fix & Flip Loan | 9.5% – 12% | 6–18 months |
| Multifamily Bridge Loan | 8.75% – 11.5% | 12–36 months |
| Commercial Bridge Loan | 9.0% – 12.5% | 12–36 months |
| Construction Bridge Loan | 10.0% – 13% | 12–24 months |
| Emergency Bridge Loan | 10.5% – 14% | 3–12 months |
Note: Rates are indicative and subject to change. Your actual rate depends on the factors described below.
Understanding Rate Ranges by Loan Type
Not all bridge loans are priced the same. Here's why rates vary by loan type:
- Residential Bridge (8.5–11%): Lowest risk for lenders — residential real estate is highly liquid and easy to value. These loans get the best rates.
- Multifamily Bridge (8.75–11.5%): Strong demand and relatively liquid market keeps rates low. Value-add deals command a small premium over stabilized.
- Commercial Bridge (9–12.5%): More complex underwriting, less liquid market, and longer due diligence = higher rates than residential.
- Fix & Flip (9.5–12%): Renovation risk and shorter term add a premium. First-time flippers pay more than experienced operators.
- Construction (10–13%): Highest risk — the collateral (an unfinished building) is worth less than completed. Rates reflect this.
- Emergency Bridge (10.5–14%): Distressed situations, tight timelines, and sometimes weaker borrowers = premium pricing.
What Affects Your Bridge Loan Rate?
Within any rate range, your actual rate is determined by several factors:
1. Loan-to-Value (LTV)
The single biggest rate driver. Lower LTV = lower risk for the lender = lower rate for you.
- 60% LTV: Best rates, most favorable terms
- 65–70% LTV: Standard rates
- 70–75% LTV: Rates increase slightly; maximum LTV for most programs
2. Credit Score
- 720+: Best rate tier
- 660–719: Standard rate (+0.25–0.5%)
- 620–659: Slight premium (+0.5–1%)
3. Property Type and Location
Primary markets (LA, NYC, Miami, Dallas) in strong condition get better rates than secondary or tertiary markets. Single-family residential gets better rates than special-use commercial.
4. Borrower Experience
Experienced investors with a track record of successful exits get lower rates. First-time flippers may see rates 0.5–1% higher than a 10-deal veteran.
5. Loan Size
Larger loans ($2M+) often receive slightly better rates because the lender's per-dollar cost of capital deployment is lower. Small loans under $200K may carry a slight premium.
6. Exit Strategy Strength
A borrower with a signed purchase contract for their exit, or a pre-approval from a take-out lender, represents lower risk and can negotiate better terms.
Origination Fees and Closing Costs
Bridge loan rates only tell part of the cost story. Origination fees and closing costs significantly affect your true cost of capital.
| Fee Type | Typical Range | Notes |
|---|---|---|
| Origination Fee | 1.5 – 3 points | 1 point = 1% of loan amount |
| Appraisal | $500 – $5,000 | Higher for commercial |
| Title & Escrow | 0.3 – 0.5% | Varies by state |
| Processing Fee | $995 – $1,995 | Some lenders; we don't charge this |
| Draw Fees (fix & flip) | $150 – $350 per draw | Per inspection |
| Extension Fee | 0.5 – 1 point | If you need more time |
At BridgeLoans: no application fee, no junk fees, no surprise charges. The term sheet is what you pay at closing.
Calculating Your True Cost of Capital
Use this formula to compare offers from different lenders properly:
Total Cost = (Loan × Rate × Term in Years) + (Loan × Origination Points%)
Example: $600,000 loan at 9.5% for 12 months with 2 points:
- Interest: $600,000 × 9.5% = $57,000
- Origination: $600,000 × 2% = $12,000
- Total cost: $69,000
- Effective APR: $69,000 ÷ $600,000 = 11.5% effective APR
Always compare effective APR — not just the stated rate — when evaluating bridge loan offers.
How to Get the Best Bridge Loan Rate
- Keep LTV low. If you can put 30–35% down instead of 25%, your rate will be better.
- Have a strong exit strategy. Lenders price risk. A clear, credible exit reduces their risk and your rate.
- Know your numbers. Borrowers who submit complete, organized applications with clear deal economics get faster approvals and sometimes better terms.
- Don't just look at rate. A lender who charges 9% but adds 3 points, a processing fee, and a junk fee may cost more than a lender charging 10% with 1.5 points and no junk fees.
- Ask about rate lock. At BridgeLoans, your rate is locked at term sheet. You won't be surprised at closing.
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