Bridge vs Fix and Flip Loan: Which to Choose
Both loans are short-term. Both are asset-based. Both can close faster than a bank loan. So investors often ask which one to pick. The answer comes down to one question: does the property need work?
This guide compares the two on the points that matter. All program details come from the lender's program pages and are offered only to qualified borrowers and subject to change.
The Core Difference
A bridge loan helps you buy a property quickly and hold it for a set time. It is not built around construction. A fix and flip loan helps you buy and also pays for repairs. It is built around a project with a rehab budget and a resale. For a broader reference, the basics of real estate investing covers the basics.
If you keep that one idea in mind, the rest of the comparison is easier.
What the Bridge Loan Offers
The program page lists a bridge loan with no rehab money and no draw schedule at $100K to $5M. It lists up to 75% of purchase and a term of 6 to 18 months. The lender states that bridge loans close in 10 to 21 days.
No draws means no draw schedule, no inspections of work, and no rehab paperwork. That keeps the process simple. It also means you pay for any repairs yourself.
What the Fix and Flip Loan Offers
The program page for fix and flip loans that finance the purchase and rehab lists $75K to $5M. It lists up to 100% of purchase and up to 100% of rehab, subject to a 75% loan-to-value cap. The term is 9 to 18 months interest-only, and no W-2s are needed.
Rehab money usually comes out in stages. A draw schedule releases funds as work is finished. This protects the lender and keeps the project on track. It also adds steps, so plan for extra time at each stage.
Side by Side
The table below sets out the main points the program pages list for each product.
PointBridgeFix and flip Loan size listed$100K to $5M$75K to $5M Purchase fundingUp to 75% of purchaseUp to 100% of purchase, 75% LTV cap Rehab fundingNone, no drawsUp to 100% of rehab Term listed6 to 18 months9 to 18 months interest-only Closing speed stated10 to 21 daysAsk the lender for the current windowRead the table as a starting point. Final sizing depends on the deal and on underwriting. Underwriting looks at cash, equity, experience, reserves, property type, condition, and location.
When a Bridge Loan Fits Better
Pick the bridge structure when the property is in good shape. Here are the common cases:
- You need to close fast on a clean property.
- You plan to resell with only light cosmetic touches.
- You are waiting for long-term financing and have a timing gap.
- You plan to renovate on your own cash and do not want draws.
The simpler structure also helps experienced buyers who dislike inspection steps. If the work is minor and you can pay for it, why add a draw process?
When Fix and Flip Fits Better
Pick the flip structure when the numbers depend on repairs. A distressed house with a large scope usually needs funded rehab. If you paid for all the work from cash, you could run out of money before the project ends. A rehab loan keeps your cash for other deals and for reserves.
A flip loan also matches the project length. A heavy rehab can take most of a year. Nine to eighteen months is a better fit than six. If your schedule is tight, a short bridge term may leave no room for delays.
The cost of a longer project
Holding costs add up while the work drags on. Taxes, insurance, utilities, and loan payments all keep running. Build these into your budget. Use calculators to compare bridge and flip costs before you apply. Test a best case and a slow case, then see if the deal still works.
The Exit Matters Too
Both loans end with a repayment. For a flip, that is usually a sale. For a bridge, it may be a sale or a refinance into a long-term loan. A property that will be a rental might move to a DSCR loan. A rental loan to refinance after a bridge is listed at up to 80% LTV. These terms are offered only to qualified borrowers and subject to change.
Whatever you choose, write down your exit. Add a second exit in case the first one slips. Lenders care about this because the loan is short.
soft money loans for real estate investorsA hybrid path
Some investors use both over time. They buy a clean property on a bridge loan, sell it, and then use a flip loan for the next project that needs heavy repairs. Others start with a bridge to secure a deal, then refinance into a rehab structure. Ask the lending team whether that path fits your property. Do not assume any switch is available.
Questions to Answer Before You Choose
- What is the repair budget, and can I pay for it myself?
- How long will the project really take?
- Do I want a draw process or a clean, simple loan?
- What is my exit, and what is my backup exit?
- How much cash will I have left after closing?
If your answers point both ways, get preliminary terms on each. The first step is a 60-second survey. The lender states that it asks about the property, purpose, and timeline, with no documents, fees, or hard credit pull. A lending expert returns preliminary terms within one business day.
Get a Second Opinion on Your Deal
Choosing between two products is easier with someone who sees deals every week. You can book a call to compare bridge and flip loans with the lending team. You can also contact the team with bridge or flip questions or call (267) 630-2875.
Kings of Capital is an asset-based lender with bridge and flip programs and states it lends in 43 states. This article does not promise approval or specific terms. Talk to your CPA or attorney about tax and legal questions on any resale or refinance.