Short-term (bridge) financing
Bridge financing addresses a borrower’s short-term needs, usually three months to three years. For land assets, short-term financing suits borrowers that intend on developing the land soon after acquisition. The flexibility gives the borrower time
to finalize zoning applications, servicing requirements and other considerations prior to beginning construction. Bridge financing typically includes floating interest rates, is interest only and requires the borrower to provide access to alternative
cash flows to service the mortgage.