Typical Commercial Bridge Loan Rates in 2026 by Use Case

Bridge loan pricing is wider and more case-by-case than permanent CRE financing because every bridge deal has its own risk profile — how much value-add, how much pre-leasing, what’s the exit, who’s the sponsor. This guide breaks down 2026 pricing across the main bridge categories, with the levers that move your rate. For product overview see commercial bridge loans; for use cases see when to use a bridge loan.

Senior Bridge (Stabilized or Near-Stabilized)

Senior bridge loans on stabilized or near-stabilized assets are the cheapest bridge product. Use cases: imminent permanent refinance, recent acquisition with strong cash flow, owner needs short-term capital while marketing for sale. Typical pricing:

• Rate: 9–11% fixed (sometimes SOFR + 425–550 bps floating)
• Origination points: 1–2 points at close
• Exit fee: 0–0.5% (often waived if refinanced with same lender)
• LTV/LTC: Up to 65% LTV on stabilized; up to 70% on the “as-is” value
• Term: 12–24 months with 1–2 six-month extensions
• Extension fee: 0.25–0.50% per extension
• DSCR: 1.10–1.25x minimum on as-stabilized basis
• Recourse: Often partial recourse or non-recourse with carve-outs

Best for: recent acquisitions, deal-by-deal sponsors awaiting permanent take-out, or borrowers who need 12–18 months to refinance to bank or agency. See bridge close timeline.

Value-Add Bridge (Lease-Up, Renovation, Repositioning)

Value-add bridge funds the acquisition + initial renovation/lease-up of an asset that’s not yet stabilized. Use cases: buying a 65% occupied building to push to 95%, light rehab + rent push, repositioning Class C to Class B. Typical pricing:

• Rate: 10–12% fixed (or SOFR + 525–650 bps floating)
• Origination points: 2–3 points at close
• Exit fee: 0.5–1.0%
• Leverage: Up to 70–75% LTC (loan-to-cost including renovation budget)
• Term: 18–36 months with extensions
• Interest reserves: Common — 6–12 months of debt service held back to bridge the lease-up period
• Future funding: Renovation budget often released in draws against completed work
• DSCR: Sized to as-stabilized DSCR (often 1.25x+); current DSCR can be below 1.0x

Best for: experienced value-add sponsors with clear business plans, defined renovation budgets, and credible lease-up assumptions. See value-add bridge specifics.

Heavy Lift / Construction-Style Bridge

Heavy lift bridge funds major repositioning, gut renovation, or conversion (office-to-multifamily, hotel rebrand, etc.). Highest risk, highest pricing:

• Rate: 11–14% fixed (or SOFR + 700–900 bps)
• Origination points: 2–4 points at close
• Exit fee: 1.0–2.0%
• Leverage: Up to 70–75% LTC including hard + soft construction costs
• Term: 24–36 months with extensions
• Interest reserves: 12–24 months held back (heavy lift assets generate no cash flow during work)
• Recourse: Often partial-recourse completion guaranty + carry guaranty

Best for: experienced developers with construction expertise and bonded GCs. Most institutional lenders won’t touch heavy lift — this is debt-fund and private-money territory.

Hard Money (Private Money)

Hard money is the looser, faster, more expensive end of the bridge market. Private lenders or asset-based lenders, often without bank-style underwriting. Use cases: 30-day close required, unconventional asset, sponsor with credit issues, deal that institutional bridge passed on. Typical pricing:

• Rate: 10–14% fixed (some go higher for distressed deals)
• Origination points: 2–5 points at close
• Leverage: 50–70% of as-is value (lower than institutional bridge)
• Term: 6–18 months (shorter than institutional)
• Underwriting: Heavily asset-based — often less concerned with borrower credit if collateral covers
• Close time: 7–21 days (vs 30–60 days for institutional bridge)

Best for: deals that need to close in 2–3 weeks, sponsors with weaker credit, or assets that institutional bridge has passed on. Expensive but accessible. See bridge loan vs hard money.

Bridge Rates by Property Type

Same lender, different rates depending on property:

• Multifamily (best pricing): Senior bridge 8.5–10.5%, value-add 9.5–11.5%. Deepest lender pool.
• Industrial: 9–11.5% on stabilized; 10–12% on value-add. Strong asset class.
• Self-storage: 9.5–11.5% on stabilized; 10.5–12.5% on lease-up.
• Office: 10–13% — higher spread due to risk perception. Class A in top markets prices best.
• Retail (anchored): 9.5–12% on stabilized.
• Hotel / hospitality: 10.5–14% — revenue-volatile asset class.
• Conversion / heavy lift (office-to-MF, hotel rebrand): 11–14%.

What Moves Your Bridge Rate Within a Lender

• LTC vs LTV: Lenders size to lower of LTC and LTV. Lower leverage = lower rate. 55% LTV deal prices 50–150 bps below 70% LTV.
• DSCR (current and as-stabilized): 1.30x as-stabilized prices below 1.20x.
• Sponsor experience and net worth: First-time value-add sponsor pays 50–150 bps premium vs experienced repeat sponsor.
• Business plan credibility: Detailed rent comps, GC contract, lease-up timeline reduce pricing. Vague plans get penalized.
• Market: Top-50 MSA prices below tertiary.
• Exit certainty: Lender wants to see clear permanent take-out (refinance, sale). Vague exit increases pricing.
• Property condition: Major deferred maintenance, environmental, or title issues add risk premium.

Total Cost: Rate + Points + Reserves + Exit

Rate alone understates bridge cost. A 10% rate with 2 points origination + 1% exit + 6 months interest reserves has materially different all-in cost than 11% rate with no points. Always model:

• Origination points: 1–5% deducted from funded loan amount
• Interest rate: Annual % on outstanding balance (factor in reserves)
• Interest reserves: Common 6–24 months; reduces net proceeds at close
• Exit fee: 0–2% paid at payoff
• Extension fees: 0.25–0.50% per extension
• Legal + diligence: $15K–$75K depending on deal size
• Default rate: Often rate + 4–6% if extension requested or default declared

For a $5M bridge at 10% + 2 pts + 0.5% exit + 6mo reserves, effective annual cost on net proceeds is closer to 13–14% than 10%. Model the full cost before signing. See bridge loan pitfalls.

When Bridge Rates Will Move Next

Bridge rates move with three things: (1) prime / SOFR for floating-rate bridge, (2) credit spreads in the debt-fund market for fixed-rate bridge, and (3) lender appetite (how much capital is chasing deals). 2026 has seen ~150–200 bps compression from 2024 peaks as Fed cuts and tighter spreads ease the market. Expect more compression if Fed cuts continue, less if cuts pause.

Get Matched with Bridge Lenders

The fastest way to find competitive bridge pricing is to apply through a marketplace that submits to debt funds, balance-sheet bridge lenders, and bank bridge desks in parallel. Get matched for a bridge loan — one app, multiple offers. Also see when to use bridge, bridge close timeline, and bridge pitfalls.