Construction Bridge Loan Rates, June 2026

As of June 21, 2026, construction bridge loan rates run roughly 9.50–13.50% interest-only depending on lender type and project risk. Banks price tightest at SOFR + 2.75–4.00% (about 9.50–10.75% all-in) but require recourse and the strongest sponsors. Debt funds run 10.50–12.50%, and private/hard-money construction bridge lenders price 11.50–13.50% for speed and flexibility on transitional or partially-built assets. Most loans are sized to loan-to-cost, not loan-to-value.

Bank construction lenders: 9.50–10.75% all-in, up to 60–65% loan-to-cost, recourse, slowest to close. Debt funds: 10.50–12.50%, up to 65–70% loan-to-cost, often partial or non-recourse, 3–5 week close. Private/hard-money: 11.50–13.50%, asset-based to a conservative 50% loan-to-value (or 65–70% loan-to-cost), fastest close, distressed-OK. The trade is always rate and leverage against speed, recourse, and flexibility.

Primarily by loan-to-cost (LTC), total project cost including land, hard costs, soft costs, and interest reserve, typically 60–70% LTC, with the sponsor funding the rest. Lenders also test loan-to-value against the as-completed appraised value, where a conservative bridge caps the asset-based loan around 50% LTV on a property-only basis. The binding constraint is whichever test produces the lower loan. Stabilized take-out is underwritten to a 60–65% gold-standard LTV.

A ground-up construction loan funds vertical construction from the start, drawing against a budget as work completes. A construction bridge loan is shorter-term, interest-only financing to complete a partially-built project, fund a stalled or recapitalized development, or carry a newly-completed asset through lease-up until a permanent take-out. Construction bridge prices above bank construction debt because it absorbs completion, lease-up, and timing risk permanent lenders will not.

Bridge-to-perm finances a project through completion and lease-up at a bridge rate (9.50–13.50% interest-only), then converts or refinances into permanent debt once the asset stabilizes. The permanent take-out is underwritten to a 60–65% gold-standard LTV on cash-flowing CMBS, agency, or bank execution at a much lower fixed rate. A clear stabilization plan and a defined exit are what compress the bridge rate. PeerSense structures both the bridge and the take-out as one capital-stack story.

Private and debt-fund construction bridge lenders commonly close in 2–4 weeks on a clean file with a current appraisal, budget, and clear title; bank construction lenders typically take 45–90 days given committee, environmental, and recourse underwriting. Speed costs rate: the fastest private execution prices 11.50–13.50%, while the patient bank execution prices 9.50–10.75%. Match lender type to your timeline and certainty-of-close needs.

Facilities commonly run from roughly $2M to $100M+, with the deepest lender competition between $5M and $50M. Below $2M, projects route to community-bank construction lines or smaller private lenders; above $50M, debt funds and institutional bridge lenders syndicate the larger tranches and may layer mezzanine above the senior bridge to fill the gap above a 60–65% senior position. Loan size, asset type, and sponsor strength determine the best lender tier.

PeerSense is a capital advisory firm that runs a competitive process across bank construction lenders, debt funds, and private/hard-money construction bridge lenders, then negotiates rate, leverage, recourse, and the permanent take-out. Advisory fees on transitional construction bridge placements are deal-specific and disclosed up front; the value is in tightening the rate, improving loan-to-cost, reducing recourse, and structuring a clean bridge-to-perm exit.