If you’ve found a potential investment property and need to secure funding for it, the question is what kind of a loan makes sense for the deal?
Bridge loans and fix and flip loans are both short-term hard money products, but they solve different problems.
Bridge loans are designed to help investors acquire, hold, or transition between properties, while fix and flip loans combine purchase and renovation financing into a single loan.
Choosing the wrong structure can create unnecessary costs, cash flow pressure, or delays once the project is underway.
This guide breaks down how each loan works, when one makes more sense than the other, and how investors in the Seattle area can choose based on the property and exit strategy in front of them.
What Is a Bridge Loan?
Bridge loans are a short-term financing option used to give investors capital as they wait for a sale. refinancing. or a permanent financing option. It’s also known as a “swing loan”.
Most bridge loans are structured with:
- Terms ranging from six to 18 months
- Interest-only monthly payments
- A balloon payment at the end of the loan term
Unlike a fix & flip loan, bridge loans are typically based on the property’s current value rather than its after-repair value (ARV).
They also generally do not include renovation funding. An investor handles these costs separately.
Common Use Cases for Bridge Loans
Bridge loans are often used when investors need temporary financing to solve a short-term timing gap.
Common scenarios include:
- Purchasing a new investment property before another property sells
- Competing in a multiple-offer environment where fast closing strengthens the offer
- Holding a property while arranging long-term financing or refinancing
- Buying at a foreclosure auction where capital needs to be available immediately
Learn more about Eastside Funding’s Bridge Loan Program.
What Is a Fix & Flip Loan?
A fix and flip loan is a short-term loan designed for investors who plan to buy a property, renovate it, and resell it for profit.
The biggest difference between a bridge loan and a fix and flip loan is the renovation component.
Bridge loans are typically used for acquisition or refinancing only. Fix and flip loans combine the purchase price and reno costs into a single financing structure.
Approval from a fix and flip lender tends to focus on the property’s after-repair value (ARV), not just its value today.
Most fix and flip loans are structured with:
- Terms ranging from five to 12 months
- Interest-only payments during the project
- Draw schedules tied to renovation milestones and inspections
Common Use Cases for Fix & Flip Loans
Fix and flip loans are commonly used for projects where the property needs meaningful renovation before it can be resold.
Typical scenarios include:
- Purchasing distressed or undervalued properties that require significant work
- Projects where the investor wants the lender to fund renovation costs alongside the purchase
- Deals where the plan is to renovate and sell the property, rather than refinance or hold long term
Learn more about Eastside Funding’s Fix & Flip Program.
Key Differences Between Bridge Loans and Fix & Flip Loans
| Feature | Bridge Loan | Fix & Flip Loan |
| Primary Purpose | Short-term financing between transactions or financing stages | Finance both the purchase and renovation of a property for resale |
| Renovation Funding | Typically not included; investor funds repairs separately | Rehab costs included, often released through draw schedules |
| Loan Term | Usually 6 – 18 months | Often between 5 – 12 months |
| Repayment Structure | Interest-only payments with balloon payment at maturity | Interest-only payments with balloon payment at maturity |
| Collateral Basis | Current property value or existing equity | After-repair value (ARV) of the property |
| Best For | Acquisitions, refinancing, temporary holds, transitional financing | Distressed properties that require renovation before resale |
| Speed to Close | Often within days | Can range from days to weeks depending on rehab scope |
The biggest distinction between the two products is the renovation component.
If the investor needs the lender to fund rehab costs, a fix and flip loan is generally the better fit. If the goal is simply to acquire, hold, or refinance a property quickly, bridge loans often make more sense.
When Should You Choose a Bridge Loan?
There are a few times when a bridge loan makes more sense than a fix & flip loan, including:
- Closing on a new property before another property sells
- Purchasing at a foreclosure auction where timelines are compressed
- Acquiring a property that is already in good condition or only needs light cosmetic work
- Holding a property temporarily before refinancing it into a long-term loan
- Repositioning a property (changing tenants or how it’s used), before securing permanent financing
In most cases, bridge loans work best when the investor has a clear exit strategy and simply needs flexible short-term capital to move the deal forward.
When Does a Fix & Flip Loan Make More Sense?
A fix and flip loan is often the better choice in situations where:
- The property requires significant work before it can be sold
- The investor wants one loan product to cover both the purchase and renovation costs
- The exit strategy is to renovate and resell the property rather than hold it long term
- The deal’s profitability depends heavily on the projected after-repair value (ARV)
- Staged draw disbursements would help manage renovation cash flow throughout the project
In these scenarios, the financing structure is designed around the renovation plan, not just the acquisition of the property.
Can Investors Use Both Loan Types?
Yes. In some cases, investors use both financing products at different stages of the same project.
For example, an investor may start with a bridge loan to secure a property, then transition into a fix and flip or rehab loan once the renovation scope is finalized.
In other situations, a bridge loan holds a completed flip while the investor waits for the property to sell.
The best approach depends on the stage of the investment, the condition of the property, and whether lender-funded renovation costs are needed.
What to Look for in a Bridge Loan or Fix & Flip Lender
Not all fix and flip lenders structure loans the same way. The right lending partner should align with both the property and the investment strategy behind it.
A few factors to evaluate:
- Closing timelines: In competitive markets, the ability to fund within days can affect whether a deal moves forward.
- Flexible loan terms: Interest-only payments, project-based timelines, and minimal prepayment restrictions can help preserve flexibility throughout the project.
- Renovation draw process: For fix and flip loans, understand how draw requests, inspections, and fund releases are handled.
- Experience with investor transactions: Lenders working with real estate investors tend to focus more on the deal itself, not traditional lending criteria.
- Local market knowledge: In the Pacific Northwest, factors such as permit timelines, neighborhood demand, and local comps can influence both financing strategy and project viability.
Bridge Loans and Fix & Flip Loans from Eastside Funding
Eastside Funding has been financing real estate investments since 2004, with more than $4.3 billion funded across 17,500+ properties.
Based in Kirkland, WA, Eastside Funding is the largest direct private financing firm in the Pacific Northwest and offers a range of investor-focused loan programs, including:
- Bridge loans
- Fix and flip loans
- Rehab financing
- New construction loans
- Foreclosure auction funding
Rates start at 10% OAC, with closings possible in as little as three business days.
Many programs do not require inspections or appraisals, helping investors reduce delays during acquisition. Reno financing may also be available for up to three times the amount of the down payment.
Eastside Funding’s white-glove approach is built around investment strategy, with loan officers who understand real estate transactions, timelines, and exit planning, not just lending.
Learn more about All Loan Programs or About Eastside Funding.
Get Started with the Right Loan for Your Next Deal
The right financing structure depends on the property, the timeline, and the strategy behind the investment.
If you’re evaluating a deal in the Seattle area, Eastside Funding can help you determine which financing approach fits the project best.
Apply now or contact Eastside Funding to discuss your next deal with our team.
