Bridge loans are short-term real estate loans that give property owners time to complete a project—such as improving the property, finding a new tenant, and selling the property. The typical commercial property bridge loan has a term of six months to one year, although lenders will grant the owner the option to extend for an additional six months to one year.
SHORT-TERM CONVENTIONAL SOURCES
More expensive but no prepayment penalties.
Commercial property bridge loans are typically paid off when the owner places permanent financing on the property, after the improvements are completed and the new tenant(s) move into the property. Most bridge loans have no prepayment penalty.