These lenders typically have widely varying standards on which they base their loan criteria and evaluate potential borrowers—but are often focused exclusively on the private market and have more lenient financial qualifications than banks.
Borrowers are advised not to work with hard money lenders who require exorbitant upfront fees prior to funding in order to reduce this risk.
Additionally a commercial lender might attempt to charge a "pre-payment penalty" in order to guarantee a certain return, in the event the loan is not kept for the full term.
Bridge loans are easy to qualify for as long as there is equity remaining in the property sufficient to cover the commercial lender's risk capital.
Commercial bridge lenders will overlook property issues, incomplete permits, credit and other problems in exchange for a higher rate of return.