Bridge Loan Agreement

Lender: [Name] · Borrower: [Name] · Date: [Date]

1. Loan Amount

Lender agrees to loan Borrower [Amount], as short-term "bridge" financing pending [the sale of Borrower's existing property / a permanent financing transaction / a specific expected liquidity event].

2. Interest Rate

Interest accrues at [Rate]% per year, [payable monthly / accruing and due at maturity], reflecting the higher risk premium typical of bridge financing.

3. Maturity Date

This loan matures on [Date], or upon the occurrence of [the expected triggering event, e.g. sale of Borrower's other property], whichever comes first.

4. Extension

[ ] Borrower may request one extension of [Period] upon payment of an extension fee of [Amount], subject to Lender's approval. [ ] No extension permitted.

5. Collateral

This loan is secured by [Description of collateral — e.g. a second lien on Borrower's existing property, or the property being financed].

6. Origination Fee

Origination/points fee: [Amount/%], due at closing.

7. Default and Acceleration

If the loan is not repaid by the maturity date, the full balance becomes immediately due, with a default interest rate of [Rate]% applying to the unpaid balance, and Lender may pursue its rights under the collateral securing the loan.

Lender: ______________________ Date: ____________ Borrower: ______________________ Date: ____________

*Bridge loans carry meaningfully higher interest rates than a standard mortgage precisely because they're short-term and higher-risk — a borrower relying on one should have real confidence in the timing of the expected triggering event (a home sale, refinance, etc.), since a bridge loan that isn't repaid on schedule becomes an expensive problem fast.*