A multifamily bridge loan funds the gap between the apartment building you're buying and the stabilized property a permanent lender will finance. Ambition Lending underwrites the property, the business plan and the refinance — not just today's trailing income — lends up to 75% of value for 6–24 months, and returns a term sheet within 24 hours on most requests.
Multifamily bridge loan terms at a glance
| Loan size | From $100,000, no fixed maximum |
|---|---|
| Leverage | Up to 75% of purchase price or appraised value |
| Valuation | As-is and after-stabilization value both considered |
| Term | 6–24 months, interest-only |
| Typical pricing | 8–12% interest and 2–4 points, deal-dependent |
| Renovation | Rehab funds released in draws after inspection |
| Property types | 2–4 units, 5+ unit apartments, mixed-use, student and senior housing |
| Uses | Acquisition, refinance, rehab, lease-up, stabilization, cash-out |
| Markets | Nationwide, including metropolitan, suburban and rural markets |
| Exit | Refinance into DSCR, agency, bank or CMBS debt, or sale |
When a multifamily bridge loan makes sense
- Lease-up: occupancy is below stabilized levels and a leasing plan will fill it.
- Renovation: unit and common-area upgrades will support higher rents and better tenants.
- Operational clean-up: weak collections, high delinquencies, bloated expenses or poor management.
- Maturing debt: the current loan is due and the trailing numbers won't size a permanent loan yet.
- Timing: the seller won't wait for agency or bank underwriting.
Small buildings and larger complexes are underwritten differently. Hard money for 2–4 units vs. 5+ units explains where the line falls and why it matters for your exit.
2–4 units vs. 5+ units: why the exit differs
A duplex to fourplex is generally valued like a house, on comparable sales, and usually refinances into a residential-style DSCR loan qualified on rent against the payment. Five units and up are commercial property: value follows net operating income and cap rate, and the permanent lender will look at the full operating statement, expenses and occupancy history. That changes what the bridge has to accomplish. On a fourplex, finishing the renovation and leasing the units may be enough; on a 24-unit building, you need months of documented income at the new rents before the refinance sizes where you planned.
How we underwrite a multifamily bridge deal
- Current performance: rent roll, leases, occupancy, collections, delinquencies and the trailing 12-month operating statement. See how lenders underwrite a multifamily T12.
- Business plan: what changes, why it raises income, and how long it takes.
- Capital expenditure plan: scope, line-item budget, timeline and contingency, with draws tied to completed units or phases.
- Market rent support: rent comps for renovated units, not the best unit in the submarket.
- The NOI bridge: how you get from today's net operating income to stabilized NOI, month by month. Check coverage in the debt yield calculator.
- Risk controls: equity cushion, reserves and sponsor or manager capacity.
- Exit: the refinance path and timing, with a backup — sale or extension.
Why multifamily bridge deals miss their exit
The plan usually breaks in one of five places: rents assumed to rise faster than the market supports, lease-up assumed faster than reality, expenses assumed to fall, renovations assumed to finish on time, and a refinance assumed to close the day the work ends. Each one pushes the property past the bridge term and into an extension. We would rather size the loan on a plan that works with a slower lease-up than on one that only works if everything goes right — see how to plan an extension before maturity if a project is already running long.
How to make the deal refinance-ready
- Use conservative rent comps and a rent growth plan you can defend line by line.
- Build a realistic CapEx budget with contingency.
- Give lease-up a buffer for seasonality and turnover.
- Track and document operating performance monthly — the next lender will ask for it.
- Know the permanent lender's constraints (DSCR, leverage, stabilized NOI and seasoning) before you close the bridge. For 5+ units, see how a DSCR loan works on a 5+ unit property; for timing, see when to move from bridge to permanent debt.
What to send for a term sheet
- Property address and purchase contract or current payoff.
- Current rent roll and trailing 12-month operating statement.
- Business plan, renovation budget and timeline.
- Rent comps supporting post-renovation rents.
- Sponsor and management experience, and entity documents.
Related programs and guides: commercial bridge loans, mixed-use property financing, bridge loan underwriting metrics and bridge loan exit strategies. Send the deal to get terms.
Frequently asked questions
What is a multifamily bridge loan?
A short-term loan to acquire or refinance a multifamily property that isn't stabilized yet — because of vacancy, below-market rents, management problems or deferred maintenance — and carry it until it qualifies for permanent financing or sells.
How much can I borrow on a multifamily bridge loan?
Up to 75% of purchase price or appraised value, from $100,000 with no fixed maximum. We consider both as-is and after-stabilization value, and renovation funds are released in draws after inspections.
Do you fund renovation on multifamily bridge loans?
Yes. Renovation capital can be included and is released in draws as work is completed and verified against the budget.
What multifamily properties qualify?
2–4 unit buildings, apartment complexes of 5 units and up, mixed-use with apartments, student housing and senior housing, in metropolitan, suburban and rural markets.
Do I need multifamily experience?
Experience is preferred. Newer investors with a strong business plan and an experienced partner or property manager are reviewed.
How do I exit a multifamily bridge loan?
Most borrowers refinance into a DSCR, agency, bank or CMBS loan once the property is stabilized, or sell. Plan the refinance requirements before you close the bridge.
Updated by the Ambition Lending credit team.
