Bridge Loan Rates 2026
What Borrowers Are Actually Paying Right Now
Bridge loan rates in May 2026 range from 7.50% to 11.50%, driven primarily by the loan-to-value ratio, property type, sponsorship strength, and the exit strategy. Most bridge lenders price on a floating spread over the 30-day SOFR rate, though some fixed-rate bridge programs exist for shorter terms. Rates have moderated from 2023 peak levels as debt funds compete aggressively for deal flow.
Current Rate Table
Rates shown are indicative ranges based on current market conditions. Your actual rate will depend on your specific property, leverage, and borrower profile. Contact Commercial Lending Solutions for a precise quote.
| Leverage Tier | Rate Range | Notes |
|---|---|---|
| Conservative (55% to 60% LTV) | 7.50% to 9.00% | Lowest leverage, strongest borrower credit |
| Standard (65% to 70% LTV) | 9.00% to 10.50% | Most common bridge loan range |
| Higher Leverage (75% to 80% LTV) | 10.50% to 11.50% | Requires strong property fundamentals |
| Construction Bridge (on future value) | 9.50% to 11.00% | For value-add with significant renovation |
Rates are illustrative ranges as of May 2026 and subject to change. All loan programs subject to underwriting approval. Not a commitment to lend.
What Drives Bridge Loan Rates
Understanding these factors helps you position your deal for the best available rate.
Loan-to-Value Ratio
The single biggest rate driver. Every 5 percentage points of additional leverage typically adds 50 to 100 basis points to the rate. Lenders at 80% LTV are taking significantly more risk than at 65% LTV and price accordingly.
SOFR / Treasury Benchmarks
Most bridge loans float over 30-day SOFR. When the Fed cuts rates, bridge loan rates fall within days. The spread over SOFR (350 to 600 bps) reflects lender risk appetite and deal quality.
Property Type and Condition
Stabilized multifamily commands the tightest bridge spreads. Distressed retail, vacant office, or hospitality assets in secondary markets will price at the wide end of the range.
Business Plan Complexity
A straightforward lease-up of a near-stabilized multifamily is priced differently than a ground-up conversion or a complex value-add requiring major capital expenditure.
Sponsorship and Track Record
Lenders price in borrower experience. A sponsor who has executed 10 similar value-add deals will get a 50 to 100 basis point better rate than a first-time bridge borrower.
Exit Strategy Clarity
Bridge lenders care deeply about how they get repaid. A clear exit (agency refinance at stabilization, signed purchase contract) lowers perceived risk and improves pricing.
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How Bridge Loan Compare to Alternatives
Choosing the right loan structure can mean a 100 to 300 basis point difference in your cost of capital. Here is how current rates compare across loan types.
| Loan Type | Current Rate Range | When to Use vs Bridge Loan |
|---|---|---|
| Hard Money Loans | 9.00% to 13.00% | Faster close (5 to 15 days), more flexible underwriting, smaller loan sizes typically under $5M |
| DSCR Loans | 6.50% to 9.00% | Fixed rate, no construction risk, but requires stabilized income. Cannot be used for value-add. |
| Permanent Loans | 5.50% to 7.50% | Much lower rates but requires stabilized occupancy. Bridge is the path to get there. |
| Construction Loans | 7.50% to 11.00% | Similar pricing but funds ground-up builds rather than existing assets |
Bridge Loan Rates 2026: Frequently Asked Questions
What are current bridge loan rates?
Bridge loan rates in May 2026 range from 7.50% to 11.50% for commercial real estate. Most bridge loans price on a floating spread of 350 to 600 basis points over 30-day SOFR. Rates depend heavily on leverage level, property type, business plan complexity, and sponsorship strength.
Are bridge loan rates fixed or floating?
Most commercial bridge loans carry floating rates tied to 30-day SOFR, meaning the rate adjusts monthly as SOFR moves. Some lenders offer short-term fixed-rate bridge programs (12 to 18 months) at a modest premium. Interest is typically paid monthly on the outstanding balance with no amortization required.
How long is a typical bridge loan term?
Bridge loan terms range from 12 to 36 months, with most lenders offering 12 or 24-month initial terms plus one or two 6-month extension options. Extensions typically require meeting certain milestones such as reaching a target occupancy percentage or completing renovations.
What LTV do bridge lenders offer in 2026?
Bridge lenders currently offer 65% to 80% LTV on as-is property value for most commercial asset types. Some lenders will go up to 85% LTV for very strong deals in primary markets. Multifamily and industrial assets command the highest leverage. Distressed office and hospitality are typically capped at 60% to 65%.
Can I get a bridge loan with interest only payments?
Yes. Virtually all commercial bridge loans are structured as interest-only during the bridge period, with the full principal balance due at maturity or payoff. This keeps monthly carrying costs low while the borrower executes the value-add business plan.
Trevor Damyan is a commercial mortgage broker with $1B+ in loans closed and direct relationships with life insurance companies, CMBS desks, debt funds, and non-QM lenders. Rate data is compiled from active lender conversations and closed transaction experience.
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