Short-Term Capital: Hard Money, Bridge and Fix-and-Flip Financing
These routes are all temporary. Each one is written to end on a date and is repaid by something that has not happened yet — a sale, a refinance, or a renovation and lease-up that supports permanent financing.
That makes the exit the main thing being underwritten, not a detail handled at the end. Start from what you are actually solving: a resale, a timing gap, or a property that does not yet fit permanent financing.
Educational comparison only. Independent providers set their own eligibility, pricing and terms.
The three routes
What “short-term capital” covers
All three routes end on a date, and all three are approved around how the balance gets repaid. If the exit is not credible, a lower rate does not make the deal work.
These three pages overlap on purpose, because the terms describe different things. Hard money describes where the capital comes from and how it is underwritten — collateral-focused, usually nonbank. Fix-and-flip and bridge describe what the money is for. A fix-and-flip loan is frequently a hard money loan. A bridge loan may be hard money, or may come from a bank.
So the useful question is not which product name to pick. It is which page answers your biggest unknown: the renovation and resale, the timing gap, or whether the property can be financed at all right now.
Which route fits the situation
Match the row that describes your situation, then read that page before comparing offers.
Scroll the table sideways to see every column.
| Your situation | What that usually means | Start here |
|---|---|---|
| Buy, renovate and resell within months | What that usually meansThe resale price is the repayment | Start hereFix-and-Flip Loans |
| A closing date arrives before your sale completes | What that usually meansTiming is the problem, not the asset | Start hereBridge Loans |
| The property or the borrower does not fit bank criteria | What that usually meansThe collateral carries the decision | Start hereHard Money Loans |
| Renovate and let, then refinance | What that usually meansThe exit is a permanent loan, not a sale | Start hereBridge Loans |
| An auction or deadline purchase | What that usually meansCertainty of funds matters more than cost | Start hereHard Money Loans |
| You are not sure the exit is realistic | What that usually meansThe exit is the weak point, not the financing | Start hereModel the exit first — no route fixes this |
Compare the three in detail
Hard Money Loans
Short-term financing secured primarily by the property rather than by documented personal income. Compare which value the leverage is measured against — as-is, after-repair or stabilised — along with recourse, liens and default terms.
Fix-and-Flip Loans
Acquisition and renovation financing built around a resale. The rehab budget, the draw schedule and the after-repair value usually decide the outcome more than the headline rate does.
Bridge Loans
Temporary financing between a current need and a defined event. Maturity, extension terms and what happens if the takeout slips are the terms worth reading first.
What to compare, whichever route you take
The same figures decide cost across all three. Get them in writing before comparing anything:
- Total cost to the payoff date, including origination, extension and exit fees
- The maturity date, and what an extension costs if the exit slips
- Carrying cost for every month the property produces no income
- Which value the leverage is measured against: as-is, after-repair or stabilised
- How rehab draws are released, and what must be completed before each one
- Recourse, personal guaranties and liens
- Prepayment terms, including any minimum interest or exit fee
The exit is the loan. Every route here is repaid by an event that has not happened yet. Price the deal on a slower sale and a lower valuation than you expect, and read the extension terms before you need them. DSCR Loans are one common permanent takeout once a property is let and stabilised.
Frequently Asked Questions
Is a fix-and-flip loan the same as a hard money loan?
Often, but not always. Fix-and-flip describes the purpose; hard money describes where the capital comes from and how it is underwritten. Many fix-and-flip loans are hard money loans, and some are not. Compare the written terms rather than the label.
Is a bridge loan the same as hard money?
Not necessarily. Bridge describes timing — financing between now and a defined event. Hard money describes the source and the underwriting approach. Bridge financing may come from a bank or a nonbank provider, and terms vary widely between them.
Which of the three is cheapest?
No category is cheapest in general. Cost depends on the provider, the property, the leverage, the term and the exit. Compare total cost to the payoff date across real written offers rather than comparing product types.
How quickly can short-term financing close?
Timelines vary by provider, property type, title condition and how complete your documentation is. Speed is often a reason these routes are considered, but no closing date is assured until a provider commits to one in writing.
Can I use these for a home I will live in?
These routes are generally structured for business-purpose real estate financing. Owner-occupied consumer purposes fall under different rules and different products. Discuss intended occupancy with the provider before applying, and see Mortgages for consumer home loans.
What happens if I cannot repay by the maturity date?
That depends entirely on the agreement. Some provide for extensions at a cost, some do not. Read the maturity, extension and default terms before closing rather than when the date approaches.
Do I need previous project experience?
Many providers consider sponsor experience as part of their review, and policies differ between them. Requirements are set by each provider, not by ShopRates.
Does ShopRates decide whether I qualify?
No. ShopRates provides information and may connect you with independent providers. Each provider makes its own eligibility and pricing decisions.
Compare Short-Term Routes on Total Cost
Tell us the property type, the amount range, the timeline and the planned exit. ShopRates can organise the comparison and may connect you with independent providers. Each provider determines its own eligibility, pricing, fees, terms and funding schedule.
This is not an application, offer or commitment.