Bridge Loan Requirements: A Checklist for Real Estate Investors

What do bridge lenders require first?

Before anyone asks for documents, a lender wants a deal summary. Expect to answer:

• Property address and type.
• Whether this is a purchase or a refinance, and the price or payoff.
• Loan amount requested.
• Renovation scope and budget, if any.
• Target closing date.
• How long you expect to hold the property.
• The exit: sale, or refinance into a named loan type.

Axelrad Capital's application collects loan type, deal basics, property information and borrower data in that order. The page says there is no hard credit pull at that stage and a team member follows up within hours.

What property requirements matter on a bridge loan?

The property is the collateral, so lenders look closely at:

• Value and cost. Lenders size the loan on LTC (loan-to-cost: the loan divided by the purchase price plus rehab budget) and LTV (loan-to-value: the loan divided by the property's value). Your deal is sized in underwriting.
• Condition and scope. What needs to be done, and whether the budget matches the work.
• Valuation method. Axelrad's bridge page lists "no appraisal options." Whether that applies to your deal is set during underwriting.
• Use. Axelrad bridge loans are business-purpose loans on investment property.

What borrower requirements apply?

Bridge lenders still look at the borrower, just differently than a bank does. Expect questions about:

• Entity. Many investors borrow through an LLC or corporation. Have the formation and good-standing documents ready.
• Experience. Past projects show you can carry out the plan. Newer investors can still apply. Expect more questions about the budget and the team.
• Liquidity. You need cash for the down payment, closing costs, reserves and any work you fund before a draw.
• Credit. Axelrad's homepage FAQ says it always asks permission before pulling credit and offers asset-based options that focus on the deal rather than the credit score.

Which documents should be ready before you apply?

Axelrad's homepage FAQ lists five documents for hard (firm) terms: a loan application, purchase contract, rehab budget, entity info and ID. Most bridge files also need more as the loan moves toward closing. The checklist below separates the two.

Bridge loan requirements checklist

Tick each item as it is ready; the list covers the deal summary, the five firm-terms documents and the items commonly requested before closing.

Part C is a general preparation list, not Axelrad's official document list. Your lender will tell you which items your file needs.

Example: a complete vs. incomplete file (hypothetical)

Example for illustration only.

Two investors ask for bridge terms on similar properties. The first sends the contract, a line-item budget, entity documents, ID and a one-paragraph exit plan naming the takeout loan. The second sends an address and asks, "What can you do?" The first investor can get firm terms; the second gets a list of questions. Same lender, same property type. The difference is preparation.

Common requirement gaps

• A rehab budget with a single lump sum instead of line items.
• An entity that isn't in good standing, or a signer who isn't listed in the operating agreement.
• An exit that depends on rents or a resale price with nothing to back it up.
• Cash for closing that leaves nothing for carrying costs.
• A purchase contract closing date sooner than the lender's realistic timeline.

Key takeaways

• Requirements cover the deal, property, borrower and documents. Have all four ready.
• Axelrad lists five documents for firm terms: application, purchase contract, rehab budget, entity info and ID.
• Calculate LTC and LTV yourself before you apply, so the request makes sense.
• Axelrad says it asks permission before pulling credit, and its application has no hard credit pull.
• A clear, supported exit counts as much as any document.

Get your file in front of a decision-maker

When most of the checklist is ticked, submit your application. For program details, see the Bridge Loans page.