The short answer
Both are short-term, asset-based loans, but a hard money loan funds distressed or renovation deals (fix-and-flip, value-add) at roughly 10-14%, while a bridge loan covers a temporary gap on stabilized property until you sell or refinance, at roughly 8-14%. Choose based on the property's condition and your exit plan.
By Growth Fund Partners Advisory Team
Commercial financing & fractional CFO advisory specialists
Hard money
Best when the property needs work or does not yet produce stable income. Priced on the asset and your renovation-and-resale plan. The go-to for fix-and-flip and value-add investors.
Bridge loan
Best when the property already performs and you just need time — to sell another asset, refinance, or complete an exchange. Priced on existing income and a clear takeout.
Hard money vs. bridge loan: side by side
| Factor | Hard money | Bridge loan |
|---|---|---|
| Primary use | Distressed / value-add / fix-and-flip | Temporary gap on stabilized property |
| Typical rate (2026) | 10% – 14% | 8% – 14% |
| Term | 6 – 24 months | 3 – 24 months |
| Property condition | Can be distressed | Usually stabilized / near-stabilized |
| Underwriting focus | Property value + exit plan | Existing income + takeout plan |
| Speed to close | 7 – 14 days | 3 – 14 days |
| Typical exit | Sale after renovation or refinance | Sale or permanent refinance |
Frequently asked questions
What is the difference between a hard money loan and a bridge loan?
Both are short-term, asset-based loans, but they serve different purposes. A hard money loan is typically used to buy and renovate distressed or non-stabilized property, priced around 10-14%. A bridge loan covers a temporary financing gap on a property that is already stabilized or near-stabilized, until permanent financing or a sale closes, usually priced around 8-14%. In practice the terms overlap and some lenders use them interchangeably.
Which is cheaper, hard money or a bridge loan?
Bridge loans are often slightly cheaper because they are usually secured by stabilized, income-producing property with a clear exit, which is lower risk. Hard money often finances distressed assets and heavier renovation, so lenders charge a bit more and may require more points. Exact pricing depends on the deal, the borrower, and loan-to-value.
When should I use hard money instead of a bridge loan?
Use hard money when the property needs significant work or does not yet produce stable income, such as a fix-and-flip or a value-add project. Use a bridge loan when the property is already performing and you simply need time, for example to sell an existing property, refinance, or complete a 1031 exchange.
What do both loans have in common?
Both are short-term (typically 6-24 months), both are underwritten primarily on the property and your exit plan rather than personal credit, both fund far faster than conventional loans (often within 1-2 weeks), and both are meant to be replaced by a permanent loan or a sale.
How do I know which one my deal qualifies for?
It comes down to the property's condition and your exit. Growth Fund Partners reviews the asset, your timeline, and your takeout plan, then structures whichever product fits, through direct lender relationships so you get real terms quickly.
Sources & further reading
- Federal Reserve — Selected Interest Rates (H.15), Bank Prime Loan Rate — prime rate benchmark for short-term real estate pricing, July 2026
- Mortgage Bankers Association — Commercial/Multifamily Finance Forecast — commercial lending conditions, 2025-2026
Rates, costs, and figures cited above are drawn from the sources listed and were accurate as of the last-updated date. Actual terms vary by borrower, lender, and market conditions. This content is educational and is not financial advice.
Not sure which fits your deal?
Send us the property and your exit plan. We will tell you whether hard money or a bridge loan is the better structure and get you real terms fast.