In short
A fix-and-flip or bridge loan is short-term financing for real estate investors that's sized around the project and the property's after-repair value (ARV) rather than your personal income. Payments are typically interest-only, and the loan is paid off when you sell the property or refinance into longer-term financing. Because these are made for business and investment purposes only, they are not owner-occupied consumer mortgages — they're for properties you're renovating to resell or repositioning as an investor, not a home you plan to live in.
Reviewed by Brad Brondt, NMLS #242550 · Last updated July 23, 2026
Key takeaways
Fix-and-flip and bridge loans are often mentioned in the same breath, but they solve different problems. Both are short-term and typically interest-only — the difference is the job each one is built to do. Here's exactly how each works, who they're for, and how you pay them back.
Fix-and-flip loans (purchase + rehab)
A fix-and-flip loan is short-term financing that funds both the purchase and the rehab of an investment property. The loan is sized around the project — the purchase price plus renovation budget, measured against the home's after-repair value (ARV). Payments are typically interest-only while you renovate, and the loan is paid off when you sell or refinance.
It's built for investors renovating to resell, not for a home you live in. Because the finished, repaired property is what the loan is really secured by and what you'll sell, a realistic ARV and a well-scoped rehab budget are central to how these deals are underwritten.
Bridge loans (12–18 month, interest-only)
A bridge loan is short-term, interest-only financing — usually 12 to 18 months — that 'bridges' a timing gap. Investors use a bridge loan to buy a new property before an existing one sells, to move quickly on a purchase that can't wait for a conventional close, or to reposition a property before placing permanent financing on it.
It's a speed-and-timing tool, paid off from a sale or a longer-term loan. Like fix-and-flip financing, a bridge loan in this context is for business and investment purposes only.
Fix & flip vs. bridge: side by side
Both are short-term, interest-only, and for investment purposes only. The difference is the job each one is built to do:
- Typical term — Fix-and-flip: 6 to 18 months, tied to the renovation timeline. Bridge: 12 to 18 months (short-term by design).
- Primary use — Fix-and-flip: buy + renovate an investment property to resell. Bridge: buy before you sell, or move fast on a time-sensitive deal.
- Payment structure — Fix-and-flip: interest-only during the project. Bridge: interest-only for the bridge period.
- Sized around — Fix-and-flip: purchase + rehab vs. after-repair value (ARV). Bridge: current value and your exit (sale or refinance).
- Exit / payoff — Fix-and-flip: sale of the finished property, or refinance. Bridge: sale of the other property, or long-term financing.
- Purpose — Both: business & investment only, not owner-occupied.
How do you pay it back? (based on project / after-repair value)
Short-term loans are designed around an exit. On a fix-and-flip, the exit is usually the sale of the finished property — you carry interest-only payments during the project, then the loan is paid in full at the sale (or when you refinance into a longer-term loan to keep the property). On a bridge loan, the exit is either the sale of the property you're replacing or placing permanent financing on the deal.
Before we structure anything, we make sure the exit is realistic — that's the whole game with short-term money. These are asset- and project-based loans, so the investor typically brings equity into the deal and holds reserves for carrying costs during the project.
Business and investment purposes only
Fix-and-flip and bridge loans are business-purpose loans for investors — they are not intended for, or offered as, mortgages on a home you occupy as your primary residence. If you're buying a home to live in, we'd point you to our purchase and first-time buyer programs instead.
Planning to hold the property as a long-term rental instead of selling? These short-term loans are usually just the first step, and investors refinance into permanent financing afterward. For buy-and-hold rental loans — including DSCR loans that qualify on the property's rental income — see our investor & DSCR long-term rental loans page.
Quick facts
- Typical term
- 6–18 months (fix-and-flip); 12–18 months (bridge) — short-term by design
- Payment structure
- Interest-only during the project / bridge period
- Sized around
- The project — purchase + rehab measured against after-repair value (ARV)
- Purpose
- Business & investment only — not owner-occupied consumer mortgages
- Exit / payoff
- Sale of the finished or replaced property, or refinance into long-term financing
- Investor contribution
- Equity into the deal plus reserves for carrying costs (subject to change and eligibility)
- Speed
- Built to move faster than a conventional mortgage for time-sensitive deals
Is this loan right for you?
Who it's for
- Investors buying a property to renovate and resell, who want purchase + rehab funded in one facility.
- Investors who need to buy before they sell and will pay the bridge off from sale proceeds.
- Investors chasing time-sensitive deals — auctions, off-market opportunities, competitive offers — that can't wait for a conventional close.
- Investors repositioning a property before placing permanent financing on it.
Who it may not fit
- Anyone buying a home to live in — these are business-purpose loans, not owner-occupied consumer mortgages.
- Buy-and-hold investors whose end goal is a long-term rental (start here, then refinance into a DSCR / long-term loan).
- Borrowers who need conventional, government, or primary-residence financing.
Pros and cons
Pros
- Fast, flexible financing built to compete on time-sensitive deals.
- Sized around the project and after-repair value rather than your personal income.
- Interest-only payments keep carrying costs low while the work happens.
- Funds both the purchase and the rehab in a single fix-and-flip facility.
Trade-offs to weigh
- Short-term by design — you need a realistic exit (sale or refinance) from day one.
- Investor typically brings equity into the deal plus reserves for carrying costs.
- Business and investment purposes only — not available for a home you'll occupy.
- A realistic ARV and well-scoped rehab budget are essential to how the deal underwrites.
Frequently asked questions
What is a fix-and-flip loan?
A fix-and-flip loan is short-term financing for real estate investors that funds both the purchase and the renovation of a property. It's sized around the project — the purchase price plus the rehab budget, measured against the home's after-repair value — and it's usually interest-only while you renovate. The loan is paid off when you sell or refinance the finished property. It is for business and investment purposes only, not for a home you intend to occupy.
What is a bridge loan?
A bridge loan is short-term, interest-only financing — typically 12 to 18 months — that covers a timing gap. Investors use it to buy a new property before an existing one sells, or to move quickly on a purchase that can't wait for a conventional closing. It's paid off from the sale of another property or by placing longer-term financing on the deal. Bridge loans in this context are for business and investment purposes only.
How is a fix-and-flip loan different from a bridge loan?
Both are short-term and typically interest-only, but they solve different problems. A fix-and-flip loan funds a purchase plus renovation and is sized around the after-repair value, with the exit being the sale of the finished property. A bridge loan solves a timing problem — it lets you buy before you sell or act fast — and is paid off from a sale or by refinancing into permanent financing.
Are these loans for a home I'm going to live in?
No. Fix-and-flip and bridge loans in this context are business-purpose loans made to investors and are not owner-occupied consumer mortgages. They're intended for investment properties you're renovating to resell or repositioning, not a primary residence. If you're buying a home to live in, we'd point you to our purchase and first-time buyer programs instead.
What is after-repair value (ARV) and why does it matter?
After-repair value is the estimated market value of a property once the planned renovation is complete. Fix-and-flip lenders size the loan against ARV because the finished, repaired property is what the loan is really secured by and what you'll sell. A realistic ARV and a well-scoped rehab budget are central to how these deals are underwritten.
Do I need a large down payment or cash reserves?
These are asset- and project-based loans, so the investor typically brings equity into the deal and reserves for carrying costs during the project. Exact figures depend on the property, the scope of work, your experience, and the program, and are subject to change and eligibility. We walk through the specific numbers on your deal before you commit.
What if I want to keep the property as a long-term rental instead of selling?
Then a fix-and-flip or bridge loan usually isn't the end goal — it's the short-term step. Many investors renovate or acquire with short-term financing and then refinance into a long-term rental loan. For buy-and-hold rental financing, including DSCR loans that qualify on the property's rental income, see our investor loans page.
How quickly can these loans close?
Speed is one of the main reasons investors use bridge and fix-and-flip financing — they're built to move faster than a conventional mortgage so you can compete on time-sensitive deals. Actual timelines depend on the property, documentation, and the specific program. We'll give you a realistic timeline for your situation up front.
Related loan programs
Buy-and-hold rental financing, including DSCR loans that qualify on the property's rental income.
Flexible, alternative-documentation financing for borrowers outside conventional guidelines.
Financing above the conforming limit for higher-priced properties.
Last updated July 23, 2026 · Reviewed by Brad Brondt, NMLS #242550. This page is educational and not a commitment to lend. Program details, figures, and eligibility are subject to change — ask for current numbers. Brondt Cook Group operates through Acre Mortgage and Financial, Inc., NMLS #13988. Equal Housing Lender.