A bridge loan and a hard money loan are both short-term loans from private lenders, but they're built for different situations. "Hard money" is a broad label for asset-based private loans, and in investor circles it usually means a loan that funds a purchase and a renovation — a fix and flip loan. A bridge loan funds a property that's already in usable shape, to buy you time until a long-term refinance or a sale. The simplest way to choose: if the property needs work, you want a rehab loan; if it needs time, you want a bridge.
The labels get blurry from lender to lender, so let's look at what each loan does rather than what it's called.
What people mean by "hard money"
Hard money originally meant a loan backed mainly by the "hard" asset — the real estate — rather than the borrower's income. Today it's used loosely for almost any short-term private real estate loan, but most investors use it to mean:
- a short-term loan (often a year or so),
- sized on the property's value and the deal, not your W-2,
- for a purchase that usually includes a renovation budget,
- with a faster, more flexible process than a bank.
At Moose's Money, that's our fix and flip program: up to 90% of total cost, up to 100% of the rehab budget, capped at 75% of after-repair value, $50K–$3M, term 12 mo (18 opt.).
What a bridge loan is
A bridge loan carries a property across a gap. The property itself is mostly done — rented, rent-ready, or listed for sale. What you need isn't a rehab budget; it's capital now and time before the permanent plan kicks in.
Our stabilized bridge loans run up to 85% of cost or 70% of value, $50K–$3M, term 12 mo. Stabilized Bridge offers a no-DSCR option for properties listed for sale and a 1.10x exit-DSCR option for rent-ready properties.
Side by side
| Fix and flip ("hard money") | Stabilized bridge | |
|---|---|---|
| Property condition | Needs work | Rented, rent-ready, or listed |
| What it funds | Purchase + renovation | Purchase, refinance, or equity — no rehab budget |
| Sized on | Total cost and after-repair value | Cost and current value |
| The question it answers | "Can I fund the rehab?" | "Can I buy time?" |
| Typical exit | Sell, or refinance into a rental loan | Refinance into long-term debt, or sell |
| Credit (our programs) | No minimum FICO | 660 minimum FICO |
| Experience (our programs) | None required | Judged deal by deal |
When a bridge loan is the right tool
- Closing fast on a good property. A rent-ready rental is for sale, the seller wants to close quickly, and a 30-year loan won't make the deadline.
- Lease-up after a rehab. The work is done, but the units aren't all rented, so a DSCR loan doesn't qualify yet.
- Pulling equity for the next deal. You own a property free and clear or with lots of equity, and you need the cash now.
- Selling. You're carrying a listed property until it closes. That's what the no-DSCR option is for.
- Changing strategy. A flip that you've decided to keep, or a rental you've decided to sell.
When a fix and flip loan is the right tool
- The house needs real work — anything from cosmetic updates to a full gut.
- You're buying below ARV and the renovation is how you create the equity.
- It's step one of a BRRRR. The rehab loan gets you in; the refinance gets you out. See BRRRR financing.
Two deals, two loans
Here's how the choice plays out on two deals that look similar at first glance. Illustrative only.
Deal A: the dated duplex. An investor finds a duplex for $240,000. Both units are vacant, the kitchens are from another decade, and the furnace is on borrowed time. After about $70,000 of work, comparable renovated duplexes support a value around $400,000. The property needs work before it can earn anything, so this is a fix and flip loan: purchase plus rehab, sized on total cost and capped by the after-repair value. If the plan is to keep it, the exit is a DSCR refinance once both units are leased — a BRRRR.
Deal B: the rent-ready duplex. A different duplex is listed at $340,000. It was renovated last year, one unit is leased, and the other is ready to show. The seller wants to close in a few weeks. Nothing here needs a rehab budget — the investor needs to close fast and have time to lease the second unit before a long-term loan will qualify. That's a bridge loan: sized on cost and current value, with a refinance into a DSCR loan once the property is stabilized.
Same property type, same neighborhood, two different loans. The deciding question wasn't the property. It was whether the investor needed money for work or money for time.
The question both loans share: what's your exit?
Neither loan is meant to be held long. Both have to be paid off by a sale or a refinance before the term runs out. So before you pick one, answer this:
- What's the property worth when the loan ends? For a flip, that's your ARV. For a bridge, it's the stabilized value or the sale price.
- What pays the loan off? A buyer, or a long-term loan. If it's a long-term loan, will the property qualify — does the rent cover the payment?
- How long will that take, realistically? Then add some months. Bridges and flips both get into trouble at the end of the term, not the beginning.
If you can't answer those clearly, neither loan is the problem — the plan is.
Costs: what to compare
Short-term private loans usually cost more than long-term bank debt. That's the trade-off for speed and flexibility. When you compare offers, look at:
- Rate — and whether it's charged on the full loan or only on funds drawn.
- Points — upfront fees as a percentage of the loan.
- Other fees — underwriting, processing, draw inspections, extensions.
- Extension terms — what it costs if you need more time.
Every lender's quote should show all of it in writing before you commit. Ours does: you'll see every point and fee in writing and sign off before anything moves forward.
Still not sure?
Plenty of deals sit right on the line: a property that needs light work and a lease-up, or a flip that might become a rental. Those are exactly the deals worth a five-minute conversation. Send us the deal and we'll tell you straight which loan fits — and if neither does, what would.
Business-purpose, non-owner-occupied only; entity borrowers (LLC or corporation) required; full recourse. Rates shown are the lowest offered and depend on borrower FICO, experience, and the deal. Points and fees vary. *Stabilized Bridge offers a no-DSCR option for properties listed for sale and a 1.10x exit-DSCR option for rent-ready properties. Not available in every state. Nothing here is a commitment to lend or an offer of specific terms; all loans subject to underwriting and approval.