Most of us know the old saying “time is money,” and nowhere is that more true than in real estate investing.
At Cetan Funds, we work with investors, builders, and developers throughout Oregon and Southwest Washington every day, and in our experience, getting financing quickly is more than just convenient; it can determine whether a project gets off the ground at all.
Last month, we explored how bridge loans help investors move quickly on deals and take advantage of time-sensitive opportunities rather than waiting on slow bank approvals. This month, we are following up with answers to the most common questions borrowers ask us about residential and commercial bridge loans: costs, timelines, what lenders are looking for, and how the market has shifted.
If you are new to bridge loans and want to start with the basics first, head to Is a Bridge Loan Right for Your Next Real Estate Deal? and then come back here.
What Are the Typical Costs and Terms?
For residential bridge loans, Cetan Funds offers loan-to-value ratios of 75 to 80 percent, a 12 percent interest rate, an origination fee of 2.0 to 2.5 percent (minimum $3,500), a $995 admin fee, and terms of 6 to 12 months, with two 6-month extensions available. There are no junk fees, no prepayment penalties, and no third-party inspections required. Internal valuations are typically completed within 1 to 2 business days.
For commercial bridge loans, terms include up to 70 to 75 percent loan-to-value, up to 80 to 90 percent loan-to-cost, loan amounts up to $5 million, interest rates of 11 to 12 percent, origination fees of 2.0 to 3.0 percent (with a $3,500 minimum), a $995 admin fee, and terms of 6 to 24 months with flexible extensions. An appraisal waiver may be available.
What are Lenders Looking for in 2026?
The bridge loan market has shifted meaningfully over the past few years, and 2026 looks different from what many investors experienced before rates rose. Here is what matters most to lenders today:
Cash-out transactions are under closer scrutiny. Lenders are applying tighter loan-to-value requirements and want to see documented, specific plans for how proceeds will be used.
Permanent financing is smaller than it used to be. Because long-term rates remain elevated, the refinance you are planning may come in lower than you expect. That means your bridge loan needs to be structured with realistic exit numbers from the start, not best-case ones.
Equity and liquidity matter more than ever. Lenders want to see real skin in the game. At Cetan Funds, we typically expect borrowers to contribute at least 10 percent of project costs in cash or equity. If you are short, cross-collateralizing another property or bringing in a partner are both options worth exploring.
Beyond the numbers, we look at collateral quality, your track record, financial capacity, and the overall strength of the deal. A minimum FICO score of 540 is required, though waivers may be available.
What Makes a Solid Exit Strategy?
Your exit strategy may be the single most important part of your application. Before closing, your lender will want to know exactly how and when you plan to repay, whether through a sale, a refinance, or new capital, and a vague answer won’t cut it.
Come prepared with a primary plan that is specific and grounded in current market conditions, and have at least one contingency ready. With rates still elevated, refinances may come in lower than expected, and sales can take longer than planned. Lenders want to see that you have thought through multiple scenarios, not just the best one. The clearer your plan, the more confidence you build, and the better your terms can be.
What Does the Application Process Actually Look Like?
At Cetan Funds, we tailor each loan to the borrower and the project. For residential bridge loans, underwriting decisions can take as little as 1 to 2 business days, with closings in 3 to 5 days. Commercial bridge loan decisions typically take 3 to 5 business days.
To get started, you will generally need a completed loan application, a personal financial statement for all guarantors, most recent bank statements, and documents specific to your project, such as purchase agreements, leases, and rehab or construction plans. A brief summary of your real estate experience is also helpful. If you have previous projects to share, even a simple photo portfolio with results can make a real difference.
We also ask for a one to two-page project summary covering the property address, deal overview, requested loan amount, exit strategy, estimated timeline, and a short bio of you and your team. If you need help putting any of this together, we are glad to walk you through it.
Final Thoughts from the Cetan Funds Team
If you are not sure whether a bridge loan is the right fit for your deal, reach out before you apply. We are happy to talk through your project, give you an honest read on whether it makes sense, and point you in the right direction, even if the answer is not a Cetan Funds loan.
Whether you are buying, renovating, or repositioning a property in Oregon or Southwest Washington, Cetan Funds offers bridge loan programs built for investors who need to move with purpose. We make fast decisions, communicate clearly, and look for creative ways to help strong deals get done.
Visit our Loan Programs page or reach out to the Cetan Funds team to learn more.
Final Thoughts from the Cetan Funds Team
For more information on how Cetan Funds can finance your real estate project, please fill out our inquiry form below. We will respond in two business days.
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If you have a deal you need help funding or want to inquire about our Broker Referral Program, please contact us below.
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We’d love to hear from you. Please submit your inquiry below and we will respond in two business days.
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BORROWER FAQs
What is a Private or Hard Money Loan?
A private or hard money loan is a short-term, business-purpose loan secured by real estate. These loans are typically used when traditional bank financing is unavailable, too slow, or not well suited to the project.
At Cetan Funds, private loans are used for fix and flip projects, rental rehab loans, residential and commercial bridge loans, construction projects, and land development. Our loans are designed for real estate investors, developers, builders, and businesses executing time-sensitive or transitional projects.
Here at Cetan Funds, we empower people to build wealth through real estate.
Why choose a private or hard money loan instead of a bank loan?
Private loans are built for speed and flexibility. Banks often require lengthy documentation, rigid underwriting, and properties that already meet strict conditions or income requirements.
Cetan Funds focuses primarily on the property, project, and exit strategy. This allows us to finance properties and scenarios that banks frequently decline due to condition, timing, complexity, or transitional use.
Private loans are commonly used when execution speed matters or when a project does not yet qualify for permanent financing.
Where does your lending capital come from?
Cetan Funds originates loans using capital from two pooled private equity funds. These funds are invested in by qualified Oregon residents and accredited investors, depending on the fund.
Rather than matching individual investors to individual loans or borrowing from banks or Wall Street, all capital is pooled and managed internally. Loans are held in portfolio and serviced by Cetan Funds.
This structure provides funding certainty, faster execution, and consistency throughout the life of the loan.
What types of loans does Cetan Funds offer?
We provide short-term, business-purpose loans secured by real estate, including:
- Fix and flip rehab loans
- Rental rehab loans
- Residential bridge loans
- Residential construction loans
- Commercial bridge loans
- Commercial construction loans
- Land development loans
All loans are for investment or business use only.
Do You Lend on Primary or Secondary Residences?
No. We do not lend on owner-occupied primary or secondary residences. All loans must be for business or investment purposes. Check out our blog to learn more about what we do and what we don't do.
Where Do You Lend?
We lend exclusively in Oregon and Southwest Washington. Our focus is on markets we know well and can evaluate accurately.
Do you only look at the property or collateral?
No. While collateral is critical, we also evaluate the borrower, project, and exit strategy.
We consider experience, capital, capacity, and overall risk profile. Our goal is to build long-term relationships, not just make one-off loans.
Do you have minimum or maximum loan amounts?
Loan amounts vary by product and scenario.
- Our minimum loan size is $50,000
- Maximum loan sizes vary by product and can reach up to $5 million for commercial loans
Please contact us to discuss your specific project.
How Long Are Your Loans?
Most of our loans are short-term, typically ranging from 6 to 18 months, depending on the product. Many loans include extension options to provide flexibility if timelines change.
What Are Your Application and Underwriting Requirements?
Requirements vary by loan type, but generally include:
- Borrower background and experience
- Property and project details
- Exit strategy
- Personal Financial Snapshot
- Bank statements
- Credit check
Construction, rehab, commercial, or land projects may require additional documentation such as plans, budgets, permits, or tax returns.
How Fast Can I Get a Loan Decision?
Loan decisions are typically made within 1–3 business days, depending on loan type and complexity.
How fast can you fund?
Once approved, loans can often fund within 3–7 business days, depending on documentation, title, and project readiness.
Can I Get Pre-Approved?
Yes. Many borrowers obtain pre-approvals to strengthen offers or prepare for upcoming projects. Pre-approvals typically take 1–2 business days.
What is the typical cash requirement?
Cash requirements vary by loan type and structure. Many projects require approximately 10% cash or equivalent equity contribution, subject to underwriting.
What Are Your Interest Rates?
Rates vary by loan type and risk profile. Typical interest rates range from 11–12%.
Interest is charged only on the outstanding loan balance, not on undrawn funds.
What fees should I expect?
Origination fees generally range from 2–3%, depending on the loan. Administrative fees typically range from $995 to $1,495.
Can I Live in the Property While I Have This Loan?
Unfortunately, no. Our borrowers cannot live in the residential properties we finance for them.
The only exception is in very specific commercial loan scenarios. If you wish to get a loan on a property you would like to live in now, or in the future, please contact us so we can help you find a lender for that. We are happy to help.
Can I Pay Off My Loan Early?
Yes. Most loans do not carry a prepayment penalty. Specific terms vary by loan and will be outlined in your loan documents.
Do You Fund Rehab and Construction Loans?
Yes. Rehab and construction loans are core products at Cetan Funds.
Do you charge interest on the full loan commitment?
No. Interest is charged only on the outstanding balance.
How do construction or rehab draws work?
Borrowers submit draw requests directly to their loan officer. Draws are typically based on completed work, materials on site, or invoices ready to be paid.
We do not charge draw fees. Draws are usually processed within 24–48 hours once documentation is received.
Do You Fund Loans on Bare Land?
Yes. We provide bare land acquisition and refinance loans, subject to underwriting.
Do You Finance Mobile or Manufactured Homes?
Yes, if the home is classified as real property, affixed to a permanent foundation, and deeded with the land.
What is “Cetan”?
“Cetan” is a Lakota word meaning “hawk spirit.” It represents vision, speed, and loyalty. These values reflect how we approach lending and long-term partnerships.
Supporting local organizations like the Cascades Raptor Center also helps us honor that connection to hawks and our beautiful raptors in the Pacific Northwest while giving back to the community.