Commercial land bridge loans
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A commercial land bridge loan is short-term, asset-based financing secured by raw, commercial or entitled land, used to acquire, hold, entitle or refinance the land before a sale or longer-term financing. Because land usually produces no income, lenders size the loan on land value alone and often require an interest reserve. This is bridge financing to buy and hold land, not construction financing.
Compare commercial land bridge lenders for your deal
Enter your deal once and compare every asset-based lender whose rules fit it, side by side: max loan, rate, points, term, days to close and total cost. Lenders stay anonymous until one confirms your terms.
- Free for borrowers
- No credit pull to compare
- Loans from $1M to $50M
What lenders look at
No income, value-based sizing
Land rarely produces income, so lenders size off the appraised land value and the borrower’s ability to carry the loan, not cash flow.
Entitlements
Approved site plans, plats, rezoning or other entitlements can add significant value. Lenders review exactly what is approved and what is still pending.
Zoning
Current zoning determines what can be built and what the land is worth today. Lenders value the land as currently zoned unless entitlements are in hand.
Utilities and access
Water, sewer, power and road access determine whether the land is ready for use. Missing utilities usually reduce value and lender interest.
Interest reserves
Since the land does not pay its own carry, lenders often require an interest reserve funded at closing or out of loan proceeds.
Exit through sale or refinance
Lenders want a clear plan to repay the loan, such as a sale to a developer or refinance once entitlements are complete.
How leverage works
Land usually gets the lowest leverage of any commercial property type at asset-based bridge lenders, often well below what income-producing property receives, because there is no cash flow and value depends on zoning and market demand. Entitled land with utilities and access generally supports more leverage than raw land. Lenders size on as-is land value, and many structure the loan with an interest reserve. These loans fund the purchase and hold of land, not ground-up construction.
Use the commercial bridge loan sizer to see whether LTV or LTC decides your loan. The deal form asks for acres, occupancy today and current NOI, so lenders see the numbers they size on.
Documents lenders ask for
- Purchase contract or payoff letter
- Survey and legal description
- Zoning verification and entitlement approvals
- Utility availability letters
- Phase I environmental report
- Site plan or concept plan, if any
- Entitlement timeline and budget, if applicable
- Exit plan, such as a developer letter of intent or refinance plan
- Entity documents and sponsor schedule of real estate
How fast it closes
Land bridge loans can close in roughly 7–30 days when the title, survey and environmental reports are clean. Delays usually come from title issues, survey questions, environmental findings or verifying the status of entitlements. Have zoning and utility letters ready to keep things moving.
Common bridge scenarios
Land acquisition
A buyer needs to close on a land purchase faster than a bank allows, and uses a bridge loan to secure the site.
Entitlement hold
An owner holds land through the entitlement process, such as rezoning or site plan approval, with a bridge loan and interest reserve, then sells or refinances once approvals are in place.
Maturing land loan payoff
An existing land loan matures before the owner is ready to sell or start a project, and a bridge loan buys time.
Cash-out on owned land
An owner with free-and-clear land takes cash out to fund another investment. See cash-out bridge loans.
Typical exit
Commercial land bridge loans are usually repaid by a sale of the land, often to a developer, or a refinance once entitlements are complete.
Related
- Asset-Based Commercial Real Estate Loans
- No-Credit-Check Commercial Bridge Loans
- Fast-Close Commercial Bridge Loans: 7, 14 and 21 Days
- Commercial bridge loan sizer (LTV and LTC)
- Debt yield and DSCR calculator
- Bridge loan cost calculator
More specialty: Gas station · Auto property · Restaurant · Healthcare and skilled nursing · Daycare and private school · Church · Event venue and recreation · Parking · Cannabis property
Frequently asked questions
Can I get a commercial land bridge loan without a credit check?
Some asset-based lenders size off the land value and do not pull credit, usually at lower leverage. You can filter for them when you compare lenders.
How fast can a land bridge loan close?
About 7–30 days when title, survey and environmental reports are clean. Title and entitlement questions are the common causes of delay.
How much leverage can I get on land?
Land usually gets the lowest leverage of any commercial property type because it has no income. Entitled land with utilities generally supports more than raw land.
Will a bridge lender fund construction on the land?
No. These are bridge loans to buy, hold or entitle land. Ground-up construction requires a separate construction loan.
Do I need an interest reserve on a land loan?
Often yes. Because land produces no income, many lenders require an interest reserve so payments are covered during the hold.
Does entitled land get better terms?
Generally yes. Approved entitlements, utilities and access reduce risk and usually support higher value and more lender interest.
General information for business-purpose investors, not legal, tax or financial advice. Lenders set final terms after underwriting.