Construction Bridge Loan Rates, June 2026

As of June 21, 2026, construction bridge loan rates run roughly 9.50 to 13.50% interest only depending on lender type and project risk. Banks price tightest at SOFR + 2.75 to 4.00% (about 9.50 to 10.75% all in) but require recourse and the strongest sponsors. Debt funds run 10.50 to 12.50%, and private/hard-money construction bridge lenders price 11.50 to 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 to 10.75% all in, up to 60 to 65% loan to cost, recourse, slowest to close. Debt funds: 10.50 to 12.50%, up to 65 to 70% loan to cost, often partial or non recourse, 3 to 5 week close. Private/hard-money: 11.50 to 13.50%, asset based to a conservative 50% loan to value (or 65 to 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 to 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 to 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 to 13.50% interest only), then converts or refinances into permanent debt once the asset stabilizes. The permanent take out is underwritten to a 60 to 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. Talk to PeerSense. The capital source sets the terms.

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