How to Get a Commercial Bridge Loan in Florida: The Complete Guide

Commercial bridge loans are the secret weapon for real estate sponsors who need to move fast. Whether you're acquiring a property at auction, repositioning an underperforming asset, or managing timing gaps between purchase and permanent financing, bridge financing gives you the capital and certainty you need to close on your terms.

In this comprehensive guide, we'll walk you through everything about commercial bridge loans in Florida, including rates, terms, qualification requirements, non-recourse options, and how to close a deal in 2-4 weeks. By the end, you'll understand exactly how bridge financing works and whether it's the right tool for your next transaction.

What is a Commercial Bridge Loan?

A commercial bridge loan is a short-term financing solution that "bridges" the gap between when you purchase a property and when you secure permanent long-term financing. Bridge loans typically have loan terms ranging from 6 months to 3 years, though most are structured for 12-24 months.

Think of it this way: You find an incredible off-market multifamily deal, but the seller needs cash in 30 days and you haven't had time to arrange a permanent loan. A bridge loan lets you close quickly with the bridge capital, giving you breathing room to execute your business plan, stabilize the property, and then refinance into a conventional loan (called the "exit strategy") at better terms.

The key advantage is speed and certainty. Bridge lenders care less about the property's current condition and more about your exit strategy and the property's post-renovation value or stabilized cash flow. Traditional bank loans take 60-90 days. Bridge loans close in 2-4 weeks.

When Do You Need a Commercial Bridge Loan?

Bridge financing isn't right for every deal, but when you need it, there's no substitute. Here are the most common scenarios where Florida commercial real estate sponsors use bridge loans:

1. Quick Acquisitions and Auctions

You've identified a property at a foreclosure auction or off-market deal, but the timeline doesn't allow for conventional financing. Bridge lenders move fast and don't require lengthy underwriting processes. You can close within 2-3 weeks, winning the deal while competitors are still submitting LOIs.

2. Value-Add and Repositioning Plays

You're acquiring an underperforming asset—a poorly managed multifamily building, a vacant retail strip, or a distressed office complex—that needs business plan execution before it can support permanent debt. Bridge financing covers the purchase and initial rehabilitation, allowing you to execute your value-add plan and stabilize operations before refinancing into permanent debt at better terms.

3. Lease-Up Bridge Financing

New construction or recently stabilized properties sometimes need 12-24 months to reach stabilized occupancy. During this "lease-up" period, cash flow may be insufficient to support permanent financing. A lease-up bridge loan covers this transition period. Once the property reaches target occupancy (typically 85%+), you refinance into permanent debt.

4. Construction Bridge Loans

You're ready to start construction on a value-add renovation or fix-and-flip project. Construction bridge loans provide the capital for the acquisition and renovation work. Once construction completes and the property stabilizes, you exit into permanent financing or a sale.

5. Partner Buyout or Recapitalization

You need to buy out a partner or recapitalize the partnership, but arranging conventional financing on a mid-hold asset takes time. Bridge financing lets you execute the transaction quickly while you arrange more permanent capital structures.

6. Refinance Timeline Gaps

Your current loan is maturing in 90 days, but your permanent refinance won't close for 4-6 months. A short-term bridge loan buys you time to complete your value-add plan, stabilize the property, and secure permanent financing at better terms than you could achieve today.

Types of Commercial Bridge Loans

Not all bridge loans are created equal. Florida lenders offer several structures to match different deal profiles and borrower needs:

Acquisition Bridge Loans

The most common type. You're purchasing a property and using the bridge for the acquisition and initial stabilization. The lender is comfortable with purchase-price LTV of 75-85% depending on property type and location. Rates typically run 7.5%-9.5% depending on risk profile.

Value-Add Bridge Loans

These are secured by the property's current value but sized to support acquisition plus renovation costs. A lender might loan 70% of current value plus 75-80% of documented hard costs, giving you 100%+ of capital needed for acquisition and significant rehabilitation. These are slightly more complex to structure but are extremely popular for repositioning deals.

Non-Recourse Bridge Loans

With standard bridge loans, you (the sponsor) are personally liable if the property underperforms and the exit doesn't happen. Non-recourse bridge loans limit your liability to the property itself. If the property doesn't perform and you can't refinance into permanent debt, the lender's remedy is foreclosure—not personal judgment against you. Non-recourse bridge loans are increasingly available in Florida but come with slightly higher rates (typically 8.5%-10.5%) and may require lower leverage (65%-75% LTV vs. 80%+ for recourse loans).

Transitional Bridge Loans

These bridge loans are designed for properties in transition between business plans. Think of a struggling office building being repositioned to creative office space, or a conventional retail center converting to experiential retail. The lender underwrites the long-term value but finances the short-term stabilization period. These are flexible and creative structures.

Bridge Loan Terms and Rates in 2026

Understanding the economics of bridge financing is critical before you commit to a deal. Here's what's typical in the Florida market right now:

What Affects Your Bridge Loan Rate?

Property Type: Multifamily and industrial bridge loans are tightest priced (7.0%-8.0%). Retail and office are wider (8.5%-10.0%). Specialty assets (hospitality, mixed-use) fall in between.

Leverage: Lower LTV = lower rates. A 70% LTV loan will be 50-75 basis points cheaper than an 80% LTV on the same deal.

Sponsor Experience: Experienced sponsors with a track record of successful exits see better rates. First-time sponsors or those with limited bridge experience may pay 75-100 bps more.

Business Plan Clarity: A clear, understandable exit strategy with reasonable assumptions gets better pricing. Vague or aggressive business plans cost more.

Non-Recourse Premium: Non-recourse loans typically cost 75-150 basis points more than recourse loans due to higher lender risk.

Market Conditions: Tighter credit conditions and higher delinquencies push rates higher. When construction costs are falling and value-add properties are stabilizing, rates compress.

How to Qualify for a Commercial Bridge Loan

Bridge lenders evaluate deals differently than traditional banks. You won't get hung up on personal credit scores or extensive financial statements. Bridge lenders focus on four core things:

1. The Property

Lenders want to understand the property's current value and post-stabilization value. You'll need a recent appraisal or broker opinion of value, rent roll (if applicable), financial statements for the last 12-24 months, and details on the property condition. For acquisition deals, the purchase contract and market comparables matter most.

2. Your Exit Strategy

This is everything in bridge lending. What's your plan to refinance out of the loan? Are you stabilizing the property and refinancing into permanent debt? Completing a value-add renovation? Leasing up a new construction? Selling the property? Bridge lenders want to see a realistic, data-backed exit plan. Vague exits = higher rates or loan denial.

3. Borrower Experience

Lenders want to see that you've done this before. How many deals have you closed? What's your experience with similar properties and business plans? Do you have a track record of successful refinances and exits? Sponsors with 10+ deals and multiple successful bridge exits get better pricing than first-timers.

4. Skin in the Game

Lenders want to know you have meaningful equity invested. This aligns incentives. A sponsor putting 20-30% equity into a deal will work harder to execute the business plan than one putting in 5%. Most lenders want to see at least 15-25% equity down.

Non-Recourse Bridge Loans: What You Need to Know

Non-recourse bridge loans have become increasingly popular in Florida, especially for experienced sponsors and larger deals. It's important to understand what "non-recourse" actually means and what you're giving up.

What Non-Recourse Really Means

In a non-recourse loan, the lender's sole remedy for default is foreclosure on the property. You, as the sponsor, are not personally liable for any shortfall if the property underperforms. If you borrow $10 million non-recourse and the property is only worth $8 million at exit, the lender forecloses and takes the $8 million loss—not you.

This is a huge benefit if your business plan is aggressive or market conditions shift unexpectedly. You're protected from personal judgment.

Standard Carveouts (They Still Exist)

However, "non-recourse" doesn't mean you have zero liability. Most non-recourse bridge loans include "carveouts"—situations where you become personally liable:

• Fraud or misrepresentation in the loan application
• Violation of loan covenants (e.g., failing to maintain insurance, not maintaining property, taking cash out without permission)
• Transfer of the property without lender consent
• Gross negligence or willful misconduct in managing the property
• Bankruptcy (non-recourse protection may not survive bankruptcy)
• Environmental liability (you may be liable for cleanup costs even on a non-recourse loan)

These carveouts are negotiable depending on deal size and lender. Larger deals ($25M+) typically have tighter carveouts. Smaller deals (<$10M) may have broader carveouts.

Non-Recourse Trade-offs

Non-recourse bridge loans cost 75-150 basis points more than recourse loans and typically allow lower leverage (70% LTV vs. 80%+). You're paying extra for the liability relief, and the lender is taking more risk, so they lend less aggressively.

For the right deal with experienced sponsors, non-recourse bridge financing is worth the premium. For tight-margin deals or first-time sponsors, recourse financing may be more economical.

The Bridge Loan Process: Step by Step

Understanding the timeline and process will help you plan your deal and set expectations with your team. Here's how a typical bridge loan closes in Florida:

Week 1: Pre-Qualification and Initial Submission

You contact a bridge lender or mortgage broker (like Banyan) with basic deal information: property address, purchase price or current value, loan amount requested, LTV, and your business plan. You submit preliminary information: purchase contract, last year's financials, and a brief write-up of your exit strategy. Good lenders can give you a quick pre-qual within 24-48 hours.

Week 1-2: Full Application and Underwriting Begins

You submit complete application materials: appraisal or BPO, property condition assessment, rent roll, 24-month financials, sponsor financial statements, and a detailed 5-10 page business plan. The lender orders a title search, environmental report (if necessary), and begins underwriting.

Week 2-3: Underwriting and Approval

The underwriter reviews all materials, may request additional clarifications or documentation, and either approves the loan or requests modifications to terms (higher rates, lower LTV, etc.). If there are material issues (bad environmental, title problem, weak sponsor), the loan may be declined. Most decisions come within 5-7 days of complete submission.

Week 3: Loan Commitment and Legal Documents

Once approved, the lender issues a loan commitment letter with terms (rate, LTV, term, closing costs, conditions, etc.). Your attorney reviews the commitment and loan documents. You may negotiate points (especially on non-recourse carveouts or extension options). This takes 3-5 days.

Week 3-4: Closing

The lender's title company coordinates closing. You sign loan documents, secure title insurance, verify funds are in escrow, and schedule funding (usually same-day or next business day after signing). The bridge loan funds, you receive the proceeds, and you close on the property purchase or execute your exit strategy.

Total Timeline: 2-4 weeks from initial submission to funded

This assumes you submit a complete application and there are no title issues or major due diligence concerns. If you're waiting for an appraisal or there are title problems, add 1-2 weeks. If you submit incomplete information, the process slows down significantly.

Why Work with a Mortgage Broker for Bridge Financing

You might be wondering: Can't I just call a bridge lender directly? Technically yes, but working with an experienced mortgage broker like Banyan provides significant advantages:

Access to Multiple Lenders and Programs

We have relationships with 15+ bridge lenders across Florida and the Southeast. Each lender has different appetites, pricing, and terms depending on property type and deal structure. Rather than shopping 10 different lenders yourself, we do that and bring you the best terms. Competition drives better pricing for you.

Faster Approvals and Better Terms

Lenders trust brokers because we pre-vet deals and clients. We've built relationships over years, so our submissions move faster and get favorable consideration. A direct application from an unknown sponsor takes longer.

Strategic Structuring

Bridge lending is about structure. Should this be non-recourse or recourse? 12-month or 24-month term? Interest-only or accruing? Should we ask for extension options? We help you think through these decisions and position the deal to lenders in the way most likely to get approval.

Negotiation and Advocacy

When the lender comes back with unfavorable terms or onerous carveouts, we negotiate on your behalf. We've done this hundreds of times and know what's market and what's aggressive. We push back where it matters.

Continuity and Problem-Solving

If issues arise during underwriting—a title problem, an environmental concern, a covenant violation on a prior loan—we help solve them. We've seen it all and know how to get deals across the finish line.

No Extra Cost

Bridge lenders pay brokers a commission from their yield. Using a broker typically costs you nothing extra. You get the benefit of our relationships and expertise at no additional cost.

Florida Bridge Loan Considerations

Bridge financing in Florida has some unique considerations due to the state's real estate market, regulatory environment, and natural hazards:

Hurricane Risk and Insurance: Florida properties have elevated insurance costs and may have availability issues in coastal areas. Lenders may require elevated insurance reserves or limit lending in high-risk coastal zones. Build this into your economics.

Condo Regulations: Florida condos face strict condo reserve requirements and financing restrictions (Fannie Mae/Freddie Mac limits on condos with high delinquencies). Bridge lenders will ask about condo reserve status and delinquencies. Condos in poor reserve condition may get higher rates or lower LTV.

Title Issues: Florida has active title insurance and legal requirements. Some older commercial properties have title issues (easements, encroachments, prior liens). Order title searches early.

Permitting and Entitlements: If your business plan involves repositioning or renovation, permits and entitlements matter. Lenders will want evidence that you can get necessary approvals. In some municipalities, this is straightforward; in others, it's a project unto itself.

Market Conditions: South Florida multifamily and industrial markets are strong. Office is softer. Retail is bifurcated (strong experiences, weak traditional retail). Bridge lenders will price differently based on current market demand and absorption for your specific property type and location.

Conclusion: Is Bridge Financing Right for Your Deal?

Commercial bridge loans are a powerful tool for sponsors who need speed, certainty, and flexibility. If you're acquiring a property that requires quick close-out, executing a value-add business plan, or managing timing gaps in your capital stack, bridge financing can be transformational.

The key is understanding the economics (rates, terms, LTV), having a clear and realistic exit strategy, and working with experienced lenders who understand your specific deal profile. Rates range from 7%-10% depending on property type, leverage, and risk factors. Non-recourse loans cost more but provide valuable liability protection for the right sponsors.

The application process typically takes 2-4 weeks from initial submission to funding, and most lenders care less about your personal credit and more about the property, your exit strategy, and your track record.

If bridge financing makes sense for your next deal, we encourage you to start conversations early. Call us with basic deal information, and we can provide a quick pre-qualification and help you understand the economics before you commit to a purchase.

About the Author: Banyan Commercial Capital is an independent commercial mortgage brokerage based in Boca Raton, Florida, specializing in debt, mezzanine, preferred equity, and joint venture capital for commercial real estate. We've closed 200+ transactions totaling $2B+ in volume and work with sponsors nationwide on bridge loans, construction financing, acquisitions, and value-add plays.