All of them were on the MLS and we haven't had to cross the bridge of finding off-market deals yet or having to put together creative financing options.

Are there any loans out there that might bridge this gap?

HELOCs are good as a bridge if you have a clear out to repay the money like @Bill Boudreau's example.I agree with @Spencer Gray find a partner to fund all/part of the deal and contribute your sweat equity by finding, closing, and running the deal.

The owner hired some guy he met panhandling under a bridge.

If it's TRUE, I could start a "bridge loan" and refinance to get that 5k or so back in a few months or so.

Creative things sellers can do sell their house-Seller contributions-seller funded permanent buy down-seller funded temporary buydown-owner financing-contract for deed-seller second-lease option and lease purchase-wraparound and assumable mortgageTwo: creative things buyers can do to purchase a home-gift funding-selling and refinancing existing assets-nonoccupant co-borrowers-using a 401(k)-temporary IRA transfer-pledged asset mortgage-equity transfer and bridge loan-employer assisted mortgageThree: creative things lenders can do to finance a transaction:-lender funded buydown-Fannie Mae's my community mortgage-running scenarios with automated underwriting systems-adjusting amortization period to lower payment-adjusting interest rates to cover closing costs-state, province, and local grant or bond programs-mortgage credit certificate-private lendingAll the three players above, the seller, buyer, and lender, can bring creative solutions to the table to get a house sold." end quoteMost brokers don't know these either, or know them and don't inform - teach their agents.This is through my direct experience.

#1 - Lending Area - many Private/Hard/Gap/Bridge lenders operate in specific or limited areas that might not make sense on the surface.

You can get away with 80% LTV on a bridge loan. 1 year term, interest only. 

Basically the value add strategy bridges the down payment gap.

I'm not familiar with many hard money lenders that would do 100% LTC for a bridge loan.