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.
Loan Inquiry
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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Broker Inquiry
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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General Inquiry
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BORROWER FAQs
What is a Private or Hard Money Loan?
Private and hard money loans come in many variations, but most are short-term loans provided by an investor or group of investors when conventional financing is unattainable or undesirable.
Most private lenders and hard money lenders, like Cetan Funds, finance projects like fix and flip rehabs, rental properties, commercial bridge loans, land development, and many other unusual or unconventional properties and projects. A private or hard money loan can help real estate investors, developers, builders, and small businesses grow their portfolios and businesses faster than they could on their own.
Here at Cetan Funds, we empower people to build wealth through real estate.
Why choose hard money vs. bank loans?
Hard money (or private) loans are built for speed and flexibility. Banks often require months of paperwork, strict borrower qualifications, and rigid underwriting standards. At Cetan Funds, we base our lending decisions primarily on the value and potential of the property, not just the borrower’s financial profile. This means we can finance properties and projects banks typically decline due to condition, complexity, or unusual circumstances.
Hard money loans are ideal for time-sensitive opportunities like fix-and-flip projects, new construction, or land development.
Where Does the Money You Lend Come From?
Cetan Funds offers two pooled private equity fund investments for Oregon residents who qualify and accredited investors. Our two funds, called Cetan Income Fund and Cetan Opportunity Fund, serve as the primary source of capital for the loans that Cetan Funds originates.
Rather than matching individual investors to individual loans, or borrowing capital from banks or Wall Street as many hard money lenders do, at Cetan Funds, we manage our own pool of funds. The investors own shares of their fund limited liability company and the principals of Cetan Funds manage the portfolio of loans owned by the fund. All loans are serviced by Cetan Funds. To learn more about the advantages of this structure, please contact us.
What Types of Loans Does Cetan Funds Finance?
We can lend on most commercial and residential property in Oregon and SW Washington if the loan is for business or investment purposes. We provide short-term financing for bare land, land development, new construction, rehabs, and residential and commercial bridge loans.
Do You Lend on Primary or Secondary Residences?
No. We can only lend for business or investment purposes and do not lend on owner-occupied residential properties. 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 SW Washington because we know the market well and are committed to helping grow our local market. We lend primarily in Western, Southern and Central Oregon with an occasional loan in Southwestern Washington.
Do You Only Look at the Property/Collateral?
While we are primarily a “collateral-based lender,” we do not solely look at the property/collateral. In our experience, who you lend to is just as important as what you lend on.
We strive to build long-term relationships with our borrowers, and we cannot achieve that if we focus solely on their real estate. So, we also take into consideration character, capacity, capital, and other conditions.
Weighing these important factors, which are often overlooked by other private and hard money lenders, helps us accurately measure risks for both our borrowers and our investors while allowing us to offer better all-around results for our clients.
Do You Have Minimum or Maximum Loan Sizes?
How Long Are Your Loans?
We offer loans as short as 3 months and as long as 60 months; however, most of our loans are for 6 to 12 months. Plus, we build in automatic extensions to every loan to ensure borrowers have time to deal with unexpected events and circumstances.
What Are Your Application and Underwriting Requirements?
Cetan Funds loans are customized to fit each specific scenario. Therefore, application and underwriting requirements can often vary depending on the situation. Typically, we require the following:
For Applications:
- Cetan Funds Business Loan Application (online form, link provided by your loan officer)
- Personal financial statements for all loan guarantors (form provided)
- Property/project description
- Summary of construction or investment experience (if applicable)
For Underwriting:
- 2 years of tax returns for all loan guarantors
- 3-6 months of bank statements
- Project/property-specific documentation (such as purchase/sale agreements, lease agreements, business financials, etc.)
- Detailed rehab or construction plans and budgets (if applicable)
Please contact us for more information on the application and underwriting requirements for your specific scenario.
How Fast Can I Get a Loan Decision?
How fast is funding?
We pride ourselves on moving quickly. Loan decisions are typically made within 1–2 business days, and pre-approval can often be issued just as fast. Once approved, we can close and fund in as little as 3–5 business days, depending on the project and documentation. That speed lets you secure capital and act on opportunities without the delays common with traditional lenders.
Can I Get Pre-Approved?
How Fast Can You Fund and Close a Loan?
As quickly as 3-5 days.
What is Your Minimum Down Payment?
What Are Your Interest Rates?
Rates vary depending on the project. Typically, annual interest rates are 10-12%. Interest is only charged on the outstanding balance. Therefore, interest is not charged on construction or rehab funds until they are drawn. So, for most of our short-term construction and rehab loans, borrowers actually incur far less than 10-12% in interest expense. For more information, please contact us.
What Are Your Loan Fees?
Origination fees vary depending on the project. Typically, origination fees are 2-4% of the loan amount. We also charge a $995-$1,495 administrative fee at closing.
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?
Do You Fund Rehab and Construction Loans?
On Rehab or Construction Loans, Do You Charge Interest on the Full Loan Commitment?
No. Interest is only charged on the outstanding balance.
How Do Construction Draws Work With Your Loans?
Construction draws are typically disbursed for work completed, materials purchased, or subcontractor invoices ready to be paid. Borrowers work directly with their loan officer, their main point of contact from start to finish on the project, to submit draw requests up to twice per month.
We do not charge fees for construction draws. Draw requests include a breakdown of the items awaiting reimbursement or payment, evidence showing the completed work or materials on site, and copies of subcontractor invoices or receipts over $2,500-5,000. Draws are typically processed in 24-48 hours.
Do You Fund Loans on Bare Land?
Yes, we provide bare land loans. Each situation is different. Please contact us for details.
Do You Finance Mobile or Manufactured Homes?
What is “Cetan”?
Cetan comes from the Lakota language and means “hawk spirit.” We chose it to represent the values we bring to lending: vision to see opportunities, loyalty in building long-term relationships, and speed in delivering funding when it’s needed most.
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.