Residential Investor Lending

Stabilized Bridge Loans

Q: What's the difference between No DSCR and DSCR Exit Bridge?

Two parallel programs. No DSCR Bridge: for stabilized C2 condition properties listed (or about to be listed) for sale, no rental income required, qualifies on the property's as is appraised value alone. 85% LTC / 70% LTV. 660 FICO. DSCR Exit Bridge: for stabilized C2 condition properties currently/soon-to-be rented but not yet rent seasoned for permanent DSCR, qualifies on a 1.10x exit DSCR (the takeout rate at the time of stabilization).

Q: What's the rate on a stabilized bridge?

Stabilized bridge rates run 9.00 to 11.50% interest only as of May 2026. Pricing depends on property condition (C2 vs C3), borrower FICO, market, and exit certainty. DSCR Exit Bridge typically prices 25 to 50 bps tighter than No DSCR Bridge because the takeout DSCR refinance gives the lender more confidence in the exit.

Q: How long is the term?

12 to 24 month term, interest only. Most stabilized bridge loans extend 6 to 12 months at the borrower's option (with extension fee 1 to 2% of loan amount). Designed to bridge between fix and flip rehab loan exit and either sale or DSCR refinance.

Q: What's the LTV / LTC max?

70% LTV (loan to value of as is appraised value) or 85% LTC (loan to cost) on properties owned <6 months. The lower of LTV/LTC binds. Properties owned 6+ months typically use as is LTV; properties recently acquired use LTC.

Q: Can I refinance from fix and flip into stabilized bridge?

Yes, this is the core use case. Fix and flip rehab loans typically have 12 month terms. If the renovation completes faster than the property sells (common in slower markets), the borrower refinances into a stabilized bridge for additional 12 to 24 months at lower rate while listing or transitioning to rental.

Q: What's the 1.10x exit DSCR requirement?

DSCR Exit Bridge requires the property to project a 1.10x DSCR at the takeout rate (the rate the borrower will refinance into when transitioning to permanent DSCR). 1.10x = projected gross rent ÷ projected PITIA at the takeout rate. This ensures the bridge has a viable exit into permanent financing, protects both lender and borrower from being trapped at bridge rates.

Q: What's the difference between stabilized bridge and fix and flip?

Fix and flip funds the rehab (rehab budget included). Stabilized bridge is for ALREADY renovated properties (no rehab budget). Fix and flip rates are wider (10 to 13%) because of construction risk; stabilized bridge prices tighter (9.00 to 11.50%) because the property is already stabilized.

Two parallel programs: No DSCR Bridge for properties listing for sale, and DSCR Exit Bridge for rentals seasoning into permanent DSCR refinance. The bridge between fix and flip exit and long term financing.

Loan Range

$10M and up

LTC / LTV

85% / 70%

Term

12-24 mo IO

FICO Floor

660

Decision

3-5 days

Quick Answer

What is a stabilized bridge loan and when do you need one?

A stabilized bridge loan is a 12 to 24 month interest only loan on a stabilized (C2 condition) 1 to 4 unit residential investor property. Two scenarios: (1) No DSCR Bridge, listing the property for sale, no rental income required, 70% LTV. (2) DSCR Exit Bridge, rental property seasoning into permanent DSCR refi, requires 1.10x exit DSCR. Rate 9.00 to 11.50% IO. 660 FICO. Designed to bridge fix and flip exits into either sale or 30 year DSCR rental.

, PeerSense Capital Advisory · 2026-05-01

Two parallel programs

No DSCR Bridge

For sale exit

✓ Property is stabilized (C2 condition or better)
✓ Listed (or about to list) for sale
✓ No rental income or DSCR required
✓ 85% LTC / 70% LTV
✓ 660 FICO floor
✓ Rate 9.25 to 11.5% IO
✓ 12 to 24 month term

DSCR Exit Bridge

Rental seasoning to DSCR refi

✓ Property is stabilized (C2 condition or better)
✓ Currently rented or about to be rented
✓ 1.10x exit DSCR at takeout rate
✓ 85% LTC / 70% LTV
✓ 660 FICO floor
✓ Rate 9.00 to 11.0% IO (25 to 50 bps tighter than No DSCR)
✓ 12 to 24 month term + extension options

Frequently asked questions

What is a stabilized bridge loan?+

A stabilized bridge loan provides 12 to 24 month interest only financing on residential investor 1 to 4 unit properties that are stabilized (C2 or better condition) but need time before permanent DSCR financing.

What's the difference between No DSCR and DSCR Exit Bridge?+

No DSCR Bridge is for stabilized C2 condition properties listed for sale, no rental income required. DSCR Exit Bridge is for stabilized C2 condition properties seasoning into permanent DSCR, qualifies on 1.10x exit DSCR at takeout rate.

What's the rate on a stabilized bridge?+

9.00 to 11.50% interest only as of May 2026. DSCR Exit Bridge typically prices 25 to 50 bps tighter than No DSCR Bridge.

How long is the term?+

12 to 24 month term, interest only. Most extend 6 to 12 months at borrower's option with extension fee 1 to 2%.

What's the LTV / LTC max?+

70% LTV (as is appraised value) or 85% LTC (loan to cost) on properties owned <6 months. Lower of LTV/LTC binds.

Can I refinance from fix and flip into stabilized bridge?+

Yes, this is the core use case. When fix and flip rehab completes faster than the property sells, refinance into stabilized bridge for additional time + lower rate.

What's the 1.10x exit DSCR requirement?+

DSCR Exit Bridge requires projected 1.10x DSCR at the takeout rate. Ensures viable exit into permanent financing.

What's the difference between stabilized bridge and fix and flip?+

Fix and flip funds the rehab. Stabilized bridge is for already renovated properties. Stabilized bridge prices tighter due to lower construction risk.