Understanding the Underwriting Process on a Bridge Loan

If you’re pursuing a bridge loan, you’ll likely encounter a different kind of underwriting process than what you’d see with traditional financing. While conventional banks focus heavily on income and credit, private bridge lenders evaluate a broader picture—one that centers on the asset itself, the timeline, and your ability to execute the plan.

So, what actually happens during the underwriting of a bridge loan? And how can you prepare to move through the process quickly and efficiently?

Let’s break it down.

1. Property Evaluation

Unlike banks, bridge lenders put heavy weight on the value of the property—whether it’s an acquisition, refinance, or a property in transition.

Key factors reviewed:

• Current and projected property value
• Recent comps (sales or rental)
• Property condition and repair scope (if applicable)
• Location demand and market strength

Appraisals may be waived or replaced with internal BPOs (Broker Price Opinions), depending on the deal structure and timeline.

2. Loan Purpose & Exit Strategy

The underwriting team wants to know why you need the loan—and more importantly, how you’ll pay it back.

Questions underwriters will ask:

• Is this a purchase, refinance, or cash-out?
• Are you repositioning, leasing up, or selling the property?
• Do you plan to exit via resale or permanent financing?
• How realistic is your timeline?

A strong, well-supported exit strategy improves confidence and may open the door to more favorable terms.

3. Loan-to-Value (LTV) and Leverage

Bridge loans are typically short-term and lower-leverage than conventional options. Most lenders will cap LTVs between 60–70% depending on the deal profile.

What this means for underwriting:

• They’ll look closely at the “as-is” and “after-repair” value (ARV)
• If rehab is involved, a detailed scope of work and budget will be required
• Liquidity to fund the down payment or gap financing may be verified

Underwriting isn’t just about how much the property is worth—it’s about how the capital stack is structured.

4. Borrower Experience and Credit Profile

Private lenders will absolutely review your background and credit, but the analysis is practical, not restrictive.

What’s reviewed:

• Your experience with similar projects
• Past loan performance (especially short-term loans)
• Credit history (with a focus on recent delinquencies or bankruptcies)
• Available reserves and liquidity

If you’re newer to investing, strong partners or a third-party contractor can help bolster your profile.

5. Timeline and Readiness

Bridge loans move fast—but only when the borrower is prepared. The underwriting timeline often depends on how quickly documents are submitted.

To expedite your file:

• Have your purchase contract or payoff statement ready
• Prepare bank statements and business formation docs (for LLCs)
• Include your scope of work and construction budget (if applicable)
• Be ready to sign disclosures and provide insurance proof

An organized borrower can shave days off the process—and help get funded faster.

Final Thought

The underwriting process for a bridge loan is designed to move quickly while still protecting both the lender and borrower. It’s not just about credit scores—it’s about the property, the plan, and your ability to execute it.

Understanding what underwriters look for can give you the advantage you need to secure the right loan—and close with confidence.

Disclosure: TaliMar Financial, Inc. dba TaliMar Financial, CA DRE License 01889802 / NMLS 337721. For information purposes only and is not a commitment to lend. Programs, rates, terms and conditions are subject to change at any time. Availability dependent upon approved credit and documentation, acceptable appraisal, and market conditions.