---
title: Differences Between Short-Term Bridge and Intermediate Bridge Loans
description: Different term lengths for bridge loans come with different advantages and limitations. Learn more about short-term and intermediate bridge loans.
---

[Verus Commercial Real Estate Finance Blog](https://blog.veruscref.com)

# [Differences Between Short-Term Bridge and Intermediate Bridge Loans](https://blog.veruscref.com/differences-between-short-term-bridge-and-intermediate-bridge-loans)

 Written by [Verus](https://blog.veruscref.com/author/verus) | Jul 19, 2022 3:47:01 AM

Bridge loans provide a valuable financing solution when a traditional, long-term loan doesn’t make sense or isn’t an option. These loans can bridge the gap between immediate needs and a more long-term financing solution. 

Not all bridge loans come with the same opportunities, term lengths, or requirements. Learn the differences between short-term bridge loans that mature after 1-2 years and longer-intermediate term bridge loans with terms of three or more years, and see what these two options look like when you partner with VCREF.

## Short-Term Bridge Loans

Bridge loans [can serve investors in valuable ways](https://blog.veruscref.com/why-borrowers-need-a-bridge-loan). Choosing between a short-term and intermediate term bridge loan comes down to understanding your needs, priorities, and qualifications as a borrower. 

The main distinction between short-term and intermediate bridge loans is the term lengths these loans provide. As the name suggests, short-term bridge loans have relatively shorter term maturities.

These loans offer advantages and a possible disadvantage compared to intermediate  bridge loans:

**+ More flexible requirements:** One of the main advantages of short-term bridge loans is that they usually come with more flexible requirements for borrowers, making it easier to qualify for these loans compared to intermediate bridge loans.

**+ More versatility:** Short-term bridge loans also offer more room for customization and work for a variety of situations, including when you need timely access to funding for an acquisition, when you need to refinance, when you want to finance a construction or renovation project, and more.

**- Higher rates:** Short-term bridge loans tend to come with higher interest rates than their intermediate counterparts. This is understandable considering these loans are typically used for less stabilized situations.

## Intermediate Bridge Loans

Longer-term bridge financing offer advantages and a possible downside of its own:

**+ Lower rates:** Longer-term bridge loans typically offer better rates than short-term bridge loans. If getting the lowest interest rate possible is a priority, you should see whether you qualify for one of these bridge loans.

**+ Lower rates:** Intermediate bridge loans tend to come with lower interest rates than short-term loans. Keep in mind that the exact terms of your loan, including the loan amount and the interest rate you qualify for, will [depend on a variety of factors](https://blog.veruscref.com/factors-used-in-underwriting-bridge-loans) unique to your situation.

**- Stricter requirements:** Longer-term bridge loans come with more stringent requirements for borrowers than short-term bridge loans do. It is generally more difficult to qualify for intermediate bridge financing, making a short-term loan a more accessible option in some cases.

## The Short-Term Bridge Loan from VCREF

VCREF offers both short-term and longer-term bridge financing. The [Short-Term Bridge Loan](https://www.veruscref.com/program/short-term-bridge-loan/) from VCREF comes with the following terms:

- ​​Loan sizes from $3 million-$40 million
- 1-2 year term to maturity with up to a year of extensions 
- Loan-to-value (LTV) ratio up to 80% for multifamily and industrial; up to 70% for other asset types
- Interest only
- Nonrecourse 
- No prepayment penalty
- No minimum debt yield
- No minimum net worth and liquidity

The Short-Term Bridge Loan can be used for a variety of rental and commercial property types, including many types of rental properties and commercial real estate.

## The Intermediate Bridge Loan from VCREF

For a longer-term bridge loan, the [Intermediate Bridge Loan](https://www.veruscref.com/program/intermediate-bridge-loan/) from VCREF is a great option to consider for temporary financing needs. This loan comes with the following terms and conditions:

- Loan sizes from $5 million-$50 million
- 3-year term to maturity plus up to two 1-year extensions
- As-is LTV up to 80% for multifamily and industrial; up to 70% for other asset types
- Subject to 18 months minimum interest
- Interest only
- Nonrecourse 
- Minimum debt yield requirements vary by property type
- Minimum net worth equal to loan amount and liquidity of 10%

The Intermediate Bridge Loan can be used for a variety of property types, but unlike with the Short-Term Bridge Loan, this list does not include condo inventory, condo investment, and single-family rental (SFR) portfolio acquisitions.

## Learn More About Real Estate Loan Options from VCREF

Bridge loans are a great solution for investors to consider in a variety of circumstances to help them meet their immediate and long-term business goals. Want to learn more about all things bridge financing? Check out our [Bridge Loan Checklist!](https://info.veruscref.com/bridge-loan-checklist)

[View full post](https://blog.veruscref.com/differences-between-short-term-bridge-and-intermediate-bridge-loans)

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