Permanent debt is not on the property yet. The sale has not closed. The DSCR refinance is still being built. The bank wants a file that has sat longer, a tax package that is not ready, or a box this deal does not fit. The property still has to be carried. An interest-only bridge is short-term capital whose payment covers interest while that takeout forms. Principal stays on the note until the sale, the refinance, or maturity pays it off. This page is that payment and that wait. It is not a rewrite of bridge loans for LLC investors. It is not a rewrite of why the bank will not refinance the flip yet. The product page is the loan. The seasoning note is the bank’s calendar. This page is why the interest-only payment matters while you are still waiting, and what that payment does not promise about the takeout.
Funded Funding is a national private-money brokerage. We are not a bank. We are not an NMLS-licensed consumer mortgage lender. The loan is business-purpose, closed in an LLC or another business entity, underwritten on the asset and the deal. The desk floor is $100k. No owner-occupied. This is a nationwide note, not a city page. Start on the Funded Funding homepage if you need the product list first, or read what the desk is.
Interest-only is the payment during the hold
Interest-only means the periodic cost of the note is interest. The payment does not include a principal installment. The balance you borrowed is still the balance you owe. It comes due when something pays the note off: the sale proceeds, the refinance proceeds, or the maturity date if the takeout has not arrived.
That is a payment shape, not a smaller loan. A file can be interest-only and still be a large note. A file can be interest-only and still be short. How the interest is collected — a payment during the term, or a reserve the note already set aside — is whatever that term sheet says. Either way, the principal is not being paid down while you wait. The published bridge points on this desk are short-term and interest-only, for an acquisition or a refinance that has to close before permanent debt is ready. Term length, leverage, and rate stay on the real note. This page will not publish a rate, a term, or a leverage figure.
Permanent debt is the loan you are waiting on. It might be a buyer’s funds at a sale. It might be a longer hold once the property can be refinanced on its rent. It might be a bank or another shop that will look at the file later. Until that loan actually closes, the bridge is the debt on the property. Interest-only describes how you service it in the meantime. It does not rename the bridge as the permanent loan.
Why that payment changes the holding cost
Holding cost is the cash it takes to carry the property until the takeout closes. On an investor file that cash is real: the note, the taxes, the insurance, utilities, vacancy, and whatever has to be spent so the sale, the refinance, or the bank file can actually happen. An amortizing payment adds a principal slice to that monthly check. You are paying the loan down while you are still waiting for a different loan to exist. That principal slice leaves the entity every month. It does not pay the taxes. It does not finish the takeout package. It does not sit there if the close slips.
An interest-only payment leaves that principal slice in the entity. Debt service during the hold is interest. The cash you did not send toward principal is still available for the rest of the carry and for the work of getting permanent debt ready. That is the help. It is a cash-timing help. It is not a discount on what you owe, and it is not a reason to ignore the other carrying costs. Taxes, insurance, and a vacant month still have to be paid. Interest still costs money. The property is not free to hold because the note is interest-only.
The other side of that help is the payoff. Because principal was not paid down, the balance at takeout is still the principal, plus any interest that is due. Equity, if the property has any, comes from what you paid, what the property is worth, and what a buyer or a refinance will actually support. The payment shape does not manufacture it. If the open question is what the house is worth today versus what it should be worth finished, that read is ARV versus as-is. An interest-only hold does not turn a thin as-is number into a takeout value.
The permanent debt that is still forming
A bridge needs a far side. Interest-only makes the wait cheaper to service than an amortizing note of the same principal. It does not invent the far side. Name which permanent path is actually forming.
A sale. The takeout is a buyer who closes and pays the note off. The bridge covers the time between this closing and that one: title that still has to clear, work that still has to finish, or a listing that is not under contract yet. The sale is permanent debt only in the sense that the bridge goes away when the buyer funds. If the contract dies, the bridge is still the loan. The listing is not a payoff.
A DSCR refinance. The takeout is a longer hold underwritten on the property’s rent, closed in the entity, once the file can support it. What that ratio is, and how it differs from a bank rental loan, already lives on what a DSCR loan is and DSCR versus a bank rental loan. This page will not rewrite them. Rent that is not in place yet, a lease that is still a draft, or a payment the property cannot cover means the DSCR takeout is still forming. The interest-only bridge can hold the property while that file is built. It is not the DSCR loan arriving early.
A bank, or another permanent shop. Sometimes the far side is a conventional or portfolio refinance that will not look at the file today. The usual reason on a recent flip is seasoning, and that calendar is why the bank will not refinance the flip yet. Other reasons are a different page: two years of tax returns, personal DTI, a financed-property count, or a shop that will only close in your personal name. The map of those nos is when the bank says no on a rental. The bridge can carry the property while you wait on their yes. Their yes is still theirs.
If the money you actually need is purchase plus a rehab budget that releases in draws, the file is a Fix & Flip, and the schedule of those releases is how rehab draws actually work. If a bank already refused cash-out because the house is unfinished, that stall is cash-out denied because the property is mid-rehab. If the hole is the dollars between a first lien and the project cost, that stack is GAP funding. Interest-only on a bridge is the payment while a named takeout forms. It is not a draw schedule, and it is not a second lien hiding inside a short note.
What the interest-only bridge does not promise
The payment helps the hold. It does not finish the takeout. Read that as a list of things the note will not do for you.
- It does not close the sale. A buyer still has to perform. Interest-only does not replace a contract, a clear title, or proceeds that actually show up at the payoff.
- It does not approve the DSCR refinance. The property still has to support that later file. A bridge payment that is interest-only says nothing about whether rent will cover the permanent payment.
- It does not make the bank say yes. Seasoning, tax returns, DTI, vesting, and a property count can still stop permanent debt after the bridge has been patient. Waiting on their calendar is not the same as their approval.
- It does not extend itself. The note has a maturity date. When that date arrives, the principal is due whether or not the sale, the DSCR file, or the bank is ready. A late takeout is a payoff problem. It is not a free extra month.
- It does not become permanent debt. There is no conversion hiding in the payment. Permanent debt is a new loan, or a sale, that pays this one off. If that event does not happen, you still owe this note.
- It does not pay the balance down. The help to holding cost is that principal stays put. The consequence is that the payoff is still that principal. Paying interest is not amortization.
Name the exit on the application, and name what is still missing before that exit can close. “We will figure out permanent debt later” is a bridge to nowhere. The interest-only payment can carry a real plan. It cannot stand in for the plan.
Entity close and the $100k floor
Borrowers close in an LLC or another business entity. The loan is business-purpose. The property, the purchase or refinance, and the borrower on the application have to be the same story. An entity that cannot take title is not a file yet. Why investors fund through an entity is the LLC note. If a bank will only put the debt in your personal name, that wall has its own page. This desk does not close the bridge in a personal name to get around it.
If you will live in the property, this site is the wrong desk. Owner-occupied is a consumer question, and we are not an NMLS-licensed consumer mortgage lender. Business-purpose does not mean “no documents,” and it does not mean every file funds.
The desk floor is $100k. Files under that are not this desk. We do not publish an office address. Terms vary by lender, property, and borrower entity. Not available in every state. We do not warehouse the loan. A blog note about an interest-only payment is not your term sheet. We will not invent a rate, a credit cutoff, a leverage figure, a term, or a holdback. Those numbers are the ones on a real note, or they are not numbers.
This page next to the bridge product and the seasoning note
Bridge loans for LLC investors is the product: short-term capital through an entity that spans to a DSCR takeout, a sale, or other permanent financing. Use that page for what the loan is, what it bridges to, and how it differs from a flip or from GAP. Use this page when the question is the interest-only payment itself — why it helps the cash cost of waiting, and why it still leaves the takeout unpromised.
Seasoning is one reason the wait exists. The rehab can be done and the bank can still refuse the refinance because the purchase, the last note, or the work is too recent. This page does not restate their calendar. It is the short-term note you may be servicing, interest-only, while that calendar runs — or while a sale or a DSCR file is the path instead. If the bank’s no was never about time, start from when the bank says no on a rental and name the actual reason.
What this desk is — and is not
Funded Funding is a national private-money brokerage. We are not a bank. We are not an NMLS-licensed consumer mortgage lender. This is a national desk. The property can be in any state we can close. We do not publish an office address, and this note is not a city page. Terms vary by lender, property, and borrower entity. Not available in every state. We do not warehouse the loan.
The desk floor is $100k. Files under that are not this desk. Borrowers close in an LLC or another business entity. We do not stretch a bridge into an owner-occupied loan we are not licensed to do. This desk reads 1–4 unit investor files differently from 5+ unit and commercial files. Put the true unit count, the deal, the exit, and what is still unfinished about that exit on the application.
How to put the file here
- Confirm it is investor property. If you will occupy it, this site is not your lender.
- Entity ready to close. LLC or other business entity that can take title and the loan.
- Deal on paper. Address, purchase or refinance, what the property is worth today, and the exit: sale, DSCR refinance, or a bank file that is not ready yet. Say what is still missing.
- Name the actual problem. You need short-term capital with an interest-only payment while permanent debt forms. You are not asking this page to be the bridge product glossary, and you are not asking it to restate a bank seasoning clock.
- Apply. Same intake as the rest of Funded Funding: the application. Apply here if the file is a bridge and the question is the interest-only hold.
Still unsure whether the file is the bridge product, a seasoning wait, a DSCR takeout versus a bank rental loan, a value question on ARV versus as-is, or a bank no that was never about time? That is what the intake is for, including the answer “the takeout is not real yet” or “this is still a bank file.”
Frequently asked questions
What does interest-only mean on a bridge note?
Interest-only means the payment on the short-term note covers interest. It does not include a principal installment. The principal is still owed, and it is due when the note is paid off — at a sale, at a refinance, or at maturity. Interest-only is the shape of the payment during the hold. It is not a smaller loan, and it is not permanent debt.
Why does interest-only help holding cost while permanent debt is still forming?
Holding cost is the cash it takes to carry the property until the takeout closes. An amortizing payment sends a principal slice out every month while that takeout is still forming. An interest-only payment leaves that slice in the entity. Taxes, insurance, utilities, vacancy, and the work of getting the sale, the DSCR file, or the bank file ready still have to be paid. Interest-only does not make the hold free. It keeps the note's periodic cost to interest while permanent debt is not ready yet.
Does an interest-only bridge guarantee a sale, a DSCR refinance, or a bank takeout?
No. The bridge carries the property while that takeout is forming. It does not close the sale, approve a DSCR file, or make a bank say yes. If the buyer falls out, the rent will not support a refinance, or the bank still wants seasoning, tax returns, or another overlay, the bridge does not become the permanent loan. The note has a maturity date. A late takeout is a payoff problem.
Is this the same page as the bridge product or the seasoning note?
No. The bridge product page is the short-term loan: capital through an LLC that spans to a named takeout. The seasoning note is why a bank will not refinance a recent flip yet. This page is the interest-only payment on that short-term note while the sale, the DSCR refinance, or the bank loan is still forming, and what that payment does not promise about the takeout.
Does interest-only pay the balance down?
No. The payment does not include principal, so the balance does not amortize during the term. The payoff is still the principal, plus any interest that is due. Paying interest-only does not create equity by itself.
What is the minimum to fund, and who closes?
The desk floor is $100k. Files under that are not this desk. Borrowers close in an LLC or another business entity. The loan is business-purpose. If you will live in the property, this site is the wrong desk.
Ready to get funded?
If you have an LLC, a property you will not occupy, and a takeout you can name — a sale, a DSCR refinance, or a bank file that is not ready yet — send the file. Interest-only keeps the payment on interest while that permanent debt forms. It does not close the takeout, extend the note, or pay the balance down. No fake funded counts. No stock testimonials. No owner-occupied stretch. No teaser rate that is not your file.
Ready to get funded?
Apply on the same intake we use live, or call or text (520) 552-7065.