As traditional banks tighten their lending criteria, the private lending industry is stepping in to fill the gap—offering faster approvals, fewer hurdles, and increasingly competitive pricing.
Thanks to improved access to Wall Street cost of capital via RTL securitizations and rated securitizations, private lenders can now offer rates comparable to bank pricing, but with superior speed, service, and flexibility. As a result, private lenders are rapidly taking over the bridge loan space and reshaping real estate financing in 2025.
Why Are Banks Pulling Back?
The retreat of traditional banks isn’t accidental—it’s a direct result of lower deposit levels and tighter banking liquidity requirements. With fewer deposits, banks have become more selective, restricting their lending to preferred customers while tightening credit boxes and imposing stricter balance requirements. This shift has opened the door for private lenders to dominate the real estate investment space, particularly in bridge and rental loans.
Competitive Pricing & Capital Market Access
One of the biggest reasons private lending is expanding is the cost of capital advantage. Private lenders now have access to a secondary mortgage market for Debt-Service Coverage Ratio (DSCR) rental loans, which is becoming increasingly competitive with consumer residential mortgages. Unlike conventional mortgages, where qualification is based on Debt-to-Income (DTI) ratios, private lenders qualify investors based on property cash flow, making financing more accessible and scalable for real estate investors.
Speed & Simplicity Give Private Lenders the Edge
In today’s market, speed is everything. With thinner margins on real estate deals, investors need funding fast, and private lenders are outpacing banks in efficiency:
Faster Closings: Dominion Financial offers pre-approvals for short-term bridge loans in 24 hours, closings in as little as 48 hours.No Appraisal Delays: Many private lenders, including Dominion Financial, offer appraisal-free approvals, eliminating a major bottleneck in the financing process.No Red Tape: Traditional banks require higher liquidity reserves and more paperwork, slowing down deals. Private lenders streamline the process, offering direct access to capital without unnecessary hoops.
Expanding Opportunities: More Than Just Bridge Loans
Private lenders aren’t just filling gaps in the bridge loan space—they’re expanding into rental loans, new construction financing, and one-stop-shop lending solutions. Dominion Financial, for example, offers a full suite of REI lending products, designed specifically for investors. Unlike traditional banks, where loan officers often lack deep real estate knowledge, private lenders understand the business model inside and out, providing clearer communication, tailored solutions, and fewer financing obstacles.
Why Dominion Financial is the Right Partner
If you’re an investor looking to capitalize on these market shifts, Dominion Financial offers lending solutions built for speed, flexibility, and investor success:
DSCR Price-Beat Guarantee – We’ll beat any competitor’s rate on DSCR rental loans.100% LTC on Fix-and-Flip Loans – Maximize leverage for higher returns.Fast Approvals & Closings – Pre-approvals in 24 hours, closings in as little as 48 hours.
