Bridge to Construction Loans

A bridge to construction loan is for a buyer who needs time to subdivide or get permits before building. You buy a property with an existing house on a bridge loan of up to 85% of the purchase price, then refinance into a Domus ground-up construction loan. The property needs an existing house. Vacant land does not qualify.

Bridge to Construction Terms, Phase by Phase

Phase 1: the bridge loan

PropertyA property with an existing house. Vacant land does not qualify.
PurposeTime to subdivide or get permits before building. The exit is a refinance into a Domus ground-up construction loan.
LeverageUp to 85% of the purchase price, or of the appraised value if lower.
Rate and pointsRate from 9.25% and points from 1.5, as of October 2026.
Term12 months.
Prepayment3-month minimum interest.
LiquidityCash to close plus 6 months of interest payments.
SubdivisionThe bridge can stay in place while the subdivision is completed.
Existing houseIt can be rented during the bridge. It cannot be torn down during the bridge, only once it is in the construction loan.
Not financedSubdivision, site development, utilities, grading and other pre-construction costs.
MarketsFlorida, Georgia, South Carolina, North Carolina and Tennessee.

Phase 2: the construction loan

Loan structureThe construction loan refinances the bridge directly. One construction loan per lot.
Loan amount$200,000 to $5,000,000.
Max LTC85% standard.
Max LTARVUp to 75%.
Land advance at closingUp to 60% of the land’s appraised value with permits not yet issued. Up to 70% with permits approved and issued.
Land value at refinanceThe purchase price, or the appraised value if lower, unless you have owned the property for at least 6 months and permitting or subdivision work has been done. Then the appraised value is used.
Rate and pointsRate from 9% and points of 1% to 2% of the loan amount, as of October 2026.
Term9 to 18 months.
InterestCharged only on drawn funds.
Construction budgetUp to 100% financed.
Minimum FICO680.
PermitsNever required to close.
ExitSale, or DSCR refinance with Domus.
MarketsFlorida, Georgia, South Carolina, North Carolina and Tennessee. Urban and suburban only, no rural.

Updated . Business-purpose loans only. The construction phase follows our ground-up construction loan program, where the complete program terms are listed.

How the Refinance Into Construction Works

The construction loan refinances the bridge directly. Two things decide how much of the bridge it covers: the land value used, and where your permits stand.

How the land is valued

  • The starting point: the purchase price, or the appraised value if lower.
  • Owned at least 6 months, with permitting or subdivision work done: the appraised value.

The land advance at construction closing

  • Permits not yet issued: up to 60% of the land's appraised value.
  • Permits approved and issued: up to 70% of the land's appraised value.

The rest of the land value is your equity in the construction loan. The construction loan down payment and LTC page explains how land equity counts toward your contribution.

Bringing the difference

If the land advance is below the bridge balance, you bring the difference to closing.

Lot Releases After a Subdivision

The bridge can stay in place while the subdivision is completed. After the subdivision, the bridge balance is split equally across the lots.

A lot is released by paying down 120% of the debt allocated to it.

Building One Lot at a Time

There is one construction loan per lot, and the lots can be built one at a time: finance one house, sell it, then finance the next.

The Existing House

The property needs an existing house. A bridge to construction loan is not available on vacant land.

The house can be rented during the bridge. It cannot be torn down during the bridge, only once it is in the construction loan.

What Is Not Financed

Subdivision, site development, utilities, grading and other pre-construction costs are not financed.

Example: A House on About 2 Acres, Split Into Two Lots

Based on a recent quote, not a funded loan.

The bridge

The bridge. Based on a recent quote, not a funded loan.
PropertyAbout 2 acres, with an existing house
Purchase price$520,000
Bridge loan, which funds the purchase (75% of $520,000)$390,000
Rate9.75%
Points (1.5% of $390,000)$5,850
Term12 months
Monthly interest ($390,000 × 9.75% ÷ 12)$3,168.75
3-month minimum interest (3 × $3,168.75)$9,506.25
Liquidity required: cash to close, plus 6 months of interest (6 × $3,168.75)Cash to close + $19,012.50

Lot releases

Lot releases. Based on a recent quote, not a funded loan.
Lots after the subdivision2
Bridge debt allocated to each lot ($390,000 ÷ 2)$195,000
Paydown to release the first lot (120% of $195,000)$234,000
Bridge balance left on the second lot ($390,000 − $234,000)$156,000

Refinance into construction, owned less than 6 months

Refinance into construction, owned less than 6 months. Based on a recent quote, not a funded loan.
Land value used (owned less than 6 months: the purchase price)$520,000
Bridge balance to refinance$390,000
Permits not yet issued: land advance (60% of $520,000)$312,000
Borrower brings to closing ($390,000 − $312,000)$78,000
Permits approved and issued: land advance (70% of $520,000)$364,000
Borrower brings to closing ($390,000 − $364,000)$26,000

The refinance is shown for the full $390,000 bridge balance, at the $520,000 purchase price.

Based on a recent quote, not a funded loan. Updated . Business-purpose loans only.

Bridge to Construction Loan FAQs

What is a bridge loan in real estate and how does it work?

At Domus, a bridge to construction loan lets you buy a property with an existing house and take time to subdivide or get permits before you build. The bridge is up to 85% of the purchase price, or of the appraised value if lower, for 12 months, with a 3-month minimum interest. A Domus ground-up construction loan then refinances the bridge directly. The property needs an existing house. Vacant land does not qualify.

How long do I need to own the land before it counts as equity (seasoning)?

Land is valued at the purchase price, or the appraised value if lower, unless you have owned it for at least 6 months and permitting or subdivision work has been done. Then the appraised value is used. On a bridge to construction, this applies to a property bought with an existing house. Vacant land does not qualify for the bridge.

Do I need permits approved before closing? ("permit-ready")

No. Permits are never required to close. They change the land advance at construction closing: up to 60% of the land’s appraised value with permits not yet issued, and up to 70% with permits approved and issued. If you need time to get permits on a property with an existing house, the bridge gives you that time. Vacant land does not qualify for the bridge.

Will the lender fund both land purchase and construction?

Yes, in two steps, when the property has an existing house. The bridge funds up to 85% of the purchase price, or of the appraised value if lower. The construction loan then refinances the bridge directly and can finance up to 100% of the construction budget, with one construction loan per lot. Vacant land does not qualify for the bridge.

By Maximiliano Extrakt, Co-Founder, Domus Lending Group. Updated .

Business-purpose loans only.

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