Bridge loans are rapidly gaining traction across Florida—especially in real estate-heavy markets like Fort Lauderdale. Whether you're flipping properties, transitioning between homes, or investing in commercial spaces, understanding the ins and outs of bridge loan financing is essential.
As a trusted #1 bridge loan funding agency, we've seen how essential it is for lenders to educate borrowers before they commit. Let’s walk through the 10 most important questions you should ask before securing a bridge loan.
A bridge loan is short-term financing that helps you “bridge” the gap between selling one property and buying another. Your unsold property serves as collateral, allowing you to access cash without waiting for your sale to close.
FeatureBridge LoanTraditional LoanApproval Speed1–10 business days3–6 weeksCredit History RequirementLow to noneStrong credit requiredCollateral RequiredYesOftenInterest Rate Range8–15% (varies by lender)4–8% (on average)Loan Term3–18 months10–30 years
Whether you seek a commercial bridge loan or want to sell or purchase your home property, the bridging loan best fits that purpose. If your target is property development or buying property, then a bridging loan can be used for
In Fort Lauderdale’s competitive market, deals close fast. A bridge loan can help you:
Before borrowing, research local market trends, especially for commercial or residential property financing in Fort Lauderdale. Lenders want assurance that your investment makes sense in the area.
Pro Tip: Local knowledge can strengthen your loan application and help with risk evaluation.
Interest rates for bridge loans typically range from 8% to 15%. Key factors that influence your rate:
FactorImpact on Interest RateStrong CollateralLower ratesWeak Credit HistoryHigher ratesCommercial PropertySlightly higher ratesShorter Loan TermsOften higher APR
Every lender has a different set of requirements, which means if you ask three other lenders, you will probably land on the three distinct requirements. However, one common requirement will always be collateral. Unlike traditional loans, which demand a credit history, commercial bridge loans only demand collaterals because every person who will avail of the loan is either in the process of selling the property or going through the sales purchase phase. So, if you have a property on board, you stand in the row for the bridge loan.
You’re a strong candidate if you:
Unlike traditional loans, perfect credit isn't necessary.
You can often close a bridge loan within 2–7 business days if all documents are in order. Some large commercial projects may take up to 2–3 weeks.So many factors count in the closing process of a bridge loan, but one thing is that the closing of the bridge loan is faster than a traditional loan. For instance, if you want to buy a condominium, the loan processing time will be a few days, and if you plan to buy the whole commercial place, it can even land in the weeks for the approvals. But if you are fulfilling all the requirements and have a collateral worth of the loan amount, then a few days is enough to approve the bridge loan.
Bridge loans are short-term, and repayment usually happens:
Always confirm with your lender whether early repayment penalties apply.
The amount varies substantially from lender to lender. All you need to look for is a lender offering bridge loans that temporarily fulfill your cash flow requirements. The amount could be $125k, $250k, $500k or even higher. The factors that count are:
MetricDescriptionImpact on Loan AmountLTV% of property’s market valueHigher = larger loanLTC% of property’s cost basisVaries by lenderARVPost-renovation projected valueHelps with fix-and-flips
Yes. While not credit-heavy at the start, failing to repay on time can hurt your credit score. On the flip side, prompt repayment may improve your creditworthiness.
Smart financial management and timely payments are key—tools like budgeting apps or working with advisors can help.
At Purple Tree Funding, we help clients across Fort Lauderdale and Florida secure fast, reliable financing. With minimal paperwork and same-day approvals, we stand out from other lenders.Purple Tree Funding is the top-of-the-line commercial bridge loan provider, which allows you to get the loan with the easiest terms and quick approvals and releases. If you have any collateral, three months of bank statements, a driving license, and a voided check, then your loan will be just 24 hours away. Your loan amount will be released to your bank account as soon as the inspection and verification of the documents are completed. Whatever your need is, whether $25ok or $500k, it will land directly in your accounts after approvals. There will be no long verification and no demand for hefty documents.
A bridge loan is a powerful tool—but only when used with clarity and preparation. Asking the right questions sets you up for success, especially in a competitive market like Fort Lauderdale.
Still have queries? Call us and let your worries vanish into thin air.
Q1. What are the main risks of getting a bridge loan in Fort Lauderdale?
The key risks include high interest rates, short repayment periods, and the potential for holding two mortgages if your current property doesn’t sell quickly. Some lenders may also foreclose on the collateral property if repayment terms aren't met.
Q2. Can I get a bridge loan with bad credit in Florida?
Yes, many Florida-based lenders, including Purple Tree Funding, offer bridge loans that prioritize collateral over credit score. As long as you have qualifying property and basic documentation, you may still get approved despite poor credit.
Q3. How fast can I get a bridge loan approved in Fort Lauderdale?
Some lenders in Fort Lauderdale can approve bridge loans in as little as 24–48 hours, depending on how quickly you submit documentation like bank statements, ID, and proof of collateral.
Q4. Is a bridge loan better than a HELOC for buying a new property?
A bridge loan is typically faster and doesn’t require long-term repayment, unlike a Home Equity Line of Credit (HELOC). If you need quick funding for a real estate transaction, a bridge loan offers more speed and flexibility.
Q5. What is the loan-to-value (LTV) ratio requirement for bridge loans in Florida?
Most bridge loan lenders require an LTV ratio between 65% and 80%, depending on property type, loan amount, and borrower profile. Higher-value properties may qualify for more favorable LTV terms.
Clear, honest info about how our funding works. No jargon—just what you need to know.
Most approvals are same day. Once approved, funds usually arrive within 24 hours—no waiting around.
We look at your business performance, not just your credit score. Cash flow and recent bank activity matter most.
Just basic business details and recent bank statements. No long forms—apply online in minutes.
We help all sizes, but you’ll usually need 6+ months in business and $20K+ monthly revenue to qualify.