Bridge & Construction

Residential Transition Loan (RTL / Fix & Flip Bridge)

An institutional 12-to-24 month short-term bridge loan used to acquire and renovate 1–4 unit investment properties.

Underwriting Formula / Rule

Max RTL Loan = Min(85%–90% LTC [Purchase + Rehab], 70%–75% Completed ARV).

Detailed Credit-Committee Impact & Thresholds

Residential Transition Loans (RTLs) finance up to 85%–90% of purchase price and 100% of the renovation holdback (capped at 70%–75% of After Repair Value), allowing investors to complete value-add rehabs before selling or refinancing into a 30-year DSCR loan.

2026 Wholesale Benchmark: 10–14 business day closings with zero prepayment penalty.

Related Underwriting Terms

Debt Service Coverage Ratio (DSCR)Form 1007 Single-Family Comparable Rent Schedule Form 1025 Small Residential Income Property Appraisal Report 5-4-3-2-1 Step-Down Prepayment Penalty 3-2-1 Step-Down Prepayment Penalty Yield Maintenance Prepayment Provision