Arranging Bridging Finance in America

A US bridging loan can be used for a range of short-term property finance needs, provided the transaction meets the lender’s criteria. Common uses include:

• Completing a US property purchase before longer-term finance is arranged
• Buying a new property before an existing property is sold
• Releasing equity from US real estate
• Funding a time-sensitive property transaction or refurbishment

The amount available and structure of the loan will depend on the property, borrower profile, loan-to-value, and proposed exit strategy.

Bridging finance in the United States is a short-term property finance solution used to help borrowers complete time-sensitive transactions before longer-term funding is arranged or liquidity becomes available.

For high-value US property transactions, bridging facilities are commonly considered for properties valued at around $1 million or more, although lender criteria vary. They can be used to:

• Secure a property before longer-term finance is finalised
• Complete a purchase before another property or asset is sold
• Release equity from an existing US property
• Fund refurbishment before refinancing or resale

Availability depends on the property, borrower profile, loan structure and proposed exit strategy.

Loan-to-value (LTV) ratios for US bridging finance vary between lenders and depend on the property, borrower profile, loan structure and proposed exit strategy. Higher-value residential properties in established markets may attract stronger lender appetite.

LTV availability is influenced by factors including:

• Property location and marketability
• Borrower financial strength
• Ownership structure
• Loan size and transaction complexity
• Strength of the proposed exit strategy

Each bridging facility is assessed individually, with the final LTV determined by the lender's criteria and the circumstances of the transaction.

International buyers can access US bridging finance in some circumstances, particularly where the property, borrower profile and proposed exit meet the lender’s criteria.

Bridging finance may be considered by:

• Overseas buyers purchasing US residential property
• International investors acquiring high-value US assets
• Borrowers restructuring property holdings across jurisdictions
• Clients requiring short-term funding before longer-term finance is arranged

Lenders will typically consider factors such as borrower residency, the property’s location and value, ownership structure, source of funds and proposed exit strategy.

Bridging finance in the United States is generally more suitable for prime residential properties in established, liquid markets, where the lender can assess the property's value and potential exit clearly.

Commonly suitable property types include:

• Luxury apartments and condominiums
• High-value single-family homes
• Second homes in established residential markets
• Residential investment properties undergoing repositioning
• Properties requiring refurbishment before refinance or sale

Property value is also an important consideration, with high-value bridging structures generally focused on properties worth around $1 million or more, subject to lender criteria.

Corporate ownership can be used for some US bridging finance transactions, particularly where the property is held through a company or the purchase forms part of an investment structure.

Lenders may consider factors such as the borrower’s residency, the ownership structure, the property, the wider investment strategy and the proposed exit. Requirements can vary significantly between lenders.

Where a company is involved, the ownership and borrowing structure should be established early so the lender can assess the transaction and any associated legal requirements.

Bridging finance can be arranged more quickly than some conventional property finance, particularly where the transaction is straightforward and the required information is available from the outset.

Timescales can be affected by:

• Property valuation requirements
• Borrower residency and ownership structure
• Legal and title requirements
• Property and transaction complexity
• Clarity of the proposed exit strategy

Prime residential property and well-prepared applications may help the process move more efficiently, but the timeframe will ultimately depend on the lender and individual transaction.

Because bridging finance is short-term, lenders generally require a clear and credible plan for repaying the facility before approving finance secured against US property.

Common exit strategies include:

• Refinancing onto longer-term property finance
• Sale of the secured property
• Releasing liquidity from another investment or property
• Using proceeds from an asset sale or other confirmed source of capital
• Selling another property within the borrower’s portfolio

The lender will assess whether the proposed exit is realistic and supported by the borrower’s financial position, the property and the overall transaction.