The Capital Desk
A plain-English reference for commercial real estate borrowers. We explain how each loan type works, what lenders actually underwrite, how long a closing takes, and how the programs compare — so you can walk into a financing conversation knowing which product fits your deal.
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A bridge loan is short-term debt (typically 12-36 months) used to buy, rescue or reposition an asset, and it is repaid by selling or refinancing. A DSCR loan is long-term debt (25-30 years) that qualifies on the property's rental cash flow. Bridge solves a timing problem; DSCR is the permanent financing you land in afterwards.
Yes. Bridge, Non-QM and DSCR programs all use no-doc or lite-doc underwriting, qualifying on the asset's value or its cash flow rather than your personal returns. Conventional financing is the one that requires full bank and tax-return underwriting.
Bridge financing typically closes in 7 to 30 days. Conventional and DSCR generally run about 30 to 45 days. Construction takes longest because of budget review and third-party reports. Title complexity and appraisal turnaround are the usual causes of delay.
Debt Service Coverage Ratio is annual net operating income divided by annual debt service. A DSCR of 1.25 means the property produces 25% more income than its loan payments. Most lenders look for 1.20 or higher, and stronger ratios earn better pricing.
LTV measures the loan against the property's current appraised value. LTC measures it against total project cost, including purchase plus renovation. ARV measures it against the projected value after repairs. Construction and value-add deals are usually governed by LTC and ARV rather than LTV.
It depends entirely on the program. Bridge carries no minimum. DSCR can go as low as 500 at conservative leverage. Non-QM generally wants 660, and conventional around 600. Asset-based programs weight the property far more heavily than the borrower.
With recourse debt the lender can pursue you personally if the asset does not cover the balance. Non-recourse limits them to the property itself, subject to standard carve-outs for fraud, waste and environmental issues. Non-recourse usually costs more in rate or leverage.
A fee for repaying early, protecting the lender's expected yield. Common structures are step-down (a declining percentage each year, e.g. 5-4-3-2-1), yield maintenance, and defeasance. Some lenders waive the penalty on refinance but not on sale — worth checking before you plan an exit.
Still Not Sure?
No obligation and no upfront fees — just tell us about the asset and we'll tell you which programs realistically fit.
Established 2012, we offer NATIONWIDE commercial real estate lending solutions.