A bridge-to-HUD loan is a short-term, interest-only first mortgage that funds an acquisition, renovation, lease-up or maturing loan now and is designed to be refinanced into a permanent HUD loan once the property qualifies. Bravo Property Trust lends $3 million to $75 million and up on apartments, skilled nursing and assisted living, for up to 36 months, at up to 80% of as-stabilized value and 90% of cost. Bravo Capital, its HUD-approved affiliate, then originates the HUD takeout.
Key terms
| Term | Bravo bridge-to-HUD |
|---|---|
| Property types | Multifamily, skilled nursing, assisted living |
| Loan size | $3 million to $75 million and up |
| Leverage | Up to 80% of as-stabilized value and 90% of cost |
| Term | Up to 36 months |
| Payments | Interest only |
| Security | First mortgage |
| Recourse | Typically non-recourse for multifamily with standard carve-outs; full recourse may be required for other property types |
| Finance fee | 1% |
| Legal deposit | $15,000 at term sheet signing |
| Guarantors | Must meet net worth and liquidity tests that depend on transaction type and size |
When bridge-to-HUD makes sense
- You need to close an acquisition faster than HUD's roughly six-month timeline
- The property does not yet meet HUD occupancy or coverage tests and needs lease-up or renovation
- An existing loan matures before a HUD loan can close
- A healthcare facility is changing operators and needs operating history before a 232 refinance
How it works
- Bravo underwrites to HUD standards from day one, ordering HUD-compliant appraisal, environmental and capital needs reports.
- Bravo Property Trust closes the bridge loan and funds renovation or lease-up as needed.
- Once the property hits HUD's occupancy and coverage tests, Bravo Capital submits the HUD application.
- The HUD loan (223(f) for apartments, 232/223(f) for healthcare) refinances the bridge.
Using one platform for both loans means the same team underwrites the deal twice, so the HUD takeout is not a surprise. A HUD takeout is never guaranteed, though; it depends on the property meeting HUD's tests at the time.
PERE Credit named Bravo Capital its 2024 Alternative Lender of the Year in the sub-$5 billion real estate AUM category.
Questions borrowers ask
Who offers bridge-to-HUD financing?
Bridge-to-HUD loans come from a few HUD lenders with their own balance sheets and from debt funds that partner with HUD lenders. Bravo Property Trust provides the bridge loan and its affiliate Bravo Capital originates the HUD refinance.
Is the HUD takeout guaranteed?
No. The HUD refinance depends on the property meeting HUD's occupancy, coverage and condition tests when the application is submitted, which is why Bravo underwrites to HUD standards from the start.
How is bridge-to-HUD different from a regular bridge loan?
A bridge-to-HUD loan is underwritten from day one to qualify for a HUD refinance, with HUD-compliant reports and a planned exit, while a conventional bridge loan may exit to any lender or a sale.
How long is a bridge-to-HUD loan?
Bravo's bridge-to-HUD loans run up to 36 months, interest only, which covers most lease-ups and renovations plus the time to process the HUD refinance.
About the author
Aaron Krawitz is the founder and CEO of Bravo Capital, a HUD-approved MAP and LEAN lender in New York City. He founded Bravo in 2021 after serving as president of Dwight Capital. Bravo and its affiliate, Bravo Property Trust, have closed more than $2.5 billion in financing, and Bravo closed every HUD firm commitment it received in 2025.
