Bridge-to-Perm Loans in 2025: From Short-Term Fix to Long-Term Win
- David Marsh
- Jun 13
- 2 min read
Ever fall in love with a property that needs just a little too much work — or doesn’t quite qualify for traditional financing yet? Enter the bridge-to-perm loan, the unsung hero of creative real estate finance. In 2025, it’s the go-to move for investors and buyers who want the best of both worlds: short-term speed and long-term stability.
At Grand Funding, we love turning complicated financing into “That was easier than I thought.” This is one of those tools that savvy buyers use when the banks say no, the timeline says now, and the future says cha-ching.
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What is a Bridge-to-Perm Loan?
Let’s decode the jargon:
• A bridge loan is a short-term loan (usually 6–24 months) used to “bridge” the gap between buying a property and getting permanent financing.
• A permanent loan is your standard long-term mortgage (think 15–30 years).
So a bridge-to-perm loan starts short and automatically transitions into a long-term mortgage once the project is stabilized — without you needing to refinance or requalify again.
It’s like getting a jetpack to launch your project, then coasting into cruise control once you’re airborne.
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Why Use a Bridge-to-Perm Loan in 2025?
Because time is money — and deals don’t wait.
• Buy now, qualify later: Great for properties that don’t cash flow yet (like vacant rentals, rehabs, or new builds)
• Less paperwork than applying for two loans
• No refi stress when the short-term loan ends
• Perfect for flips turned keepers, or ground-up construction with rental goals
Bonus? It shows sellers you mean business — quick closes make you the favorite bidder.
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What Kind of Projects Fit This Loan?
• New construction projects (especially if you’re building to rent)
• Fix-and-holds (buy, rehab, then lease out)
• Multifamily properties being repositioned
• Commercial properties that need tenant improvements before refi
• Airbnbs or STRs ramping up bookings for future valuation
Basically, anything that starts messy and ends stable. If you’re creating value, this is your ticket.
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What Do You Need to Qualify?
Lenders want a story and a plan. Here’s your checklist:
• A viable exit strategy (aka how and when the loan converts to perm)
• Budget and timeline
• Appraisal or future-value estimate
• Credit score (typically 660+)
• Experience helps, but it’s not required if your deal is strong
We help you prep your package like a pro — so your lender sees opportunity, not risk.
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Pro Tip: Build in Cushion
Things go sideways — it’s real estate. We recommend:
• Budgeting 10–15% contingency
• Overestimating your timeline (inspectors don’t run on your schedule)
• Prepping your long-term refi docs while the project is still cooking
It’s a balancing act, and we’re your net.
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