Bridge Loans – Duration

Bridge loans are short-term financing option for purchasing new property. They’re quick to obtain, and quick to expire. Permanent financing can vary from fifteen year loans all the way to forty-five year loans, and are usually obtained for thirty year terms. Bridge loans are usually for anywhere between two weeks and about three years. They’re not permanent financing option, which is why the duration is so short. Bridge loans provide a window of time agreed upon by the borrower and the lender to obtain acceptable, permanent financing. A bridge loan’s biggest attraction is speed.

If you’re unsure of how long it will take to sell your current property, lenders have a solution for that. The length of the bridge loan typically lasts for either the term stated, or when the sale of the property is official and permanent financing is obtained, whichever comes first. Lenders commonly use an appraisal and information provided by a realtor or other agent to help them determine if the term of the bridge loan is appropriate for the particular situation. Since a bridge loan expires in such a short amount of time, it is fairly possible that you could end up with the bridge loan due, and no permanent financing to cover the cost. So research the term lengths and speak with experienced lenders, and you won’t get caught without financing.


Bridge loans are specifically designed for quick purchases. They provide room for negotiation when purchasing a new property and allow time to obtain permanent financing. If you know when your sale will close, or if you know when you will obtain permanent financing, then the duration of a bridge loan is a given. But if your current property has been on the market for a while, or you’re still looking for a lender for a thirty year term, the duration of the bridge loan will be figured out by the lender.