Delaware is small, but its closing costs are not. The realty transfer tax here is among the highest in the country, which makes it more important that the bridge loan itself is priced and structured well, and that the exit is planned before you close.
In short: The best bridge loan lender for a Delaware deal is the one whose speed, leverage, rehab funding, draw process and extension terms fit your project. LendingStreet offers residential investor bridge loans on 1-8 unit properties in Delaware from $150,000 to $5M+, with rates from 7.99%, interest-only payments and closings in as little as 10 days. Delaware's high realty transfer tax and the split between the Wilmington area, Kent County and the Sussex County beach market are the local items that most affect the numbers.
Ranking lenders in the abstract does not help much. What helps is asking every lender the same questions and comparing the answers against your actual timeline, budget and exit.
In Delaware, the total cost to close deserves a close look because the transfer tax already adds a lot. Compare lender costs line by line, and make sure the loan size and the exit refinance leave room for those closing costs on both ends.
| What to compare | What to ask |
|---|---|
| Speed to close | How many days from signed term sheet to funding, and what slows it down? |
| Leverage | How much of the purchase and rehab do they fund, and on what value? |
| Rehab funding | Is the rehab budget included, and is it funded upfront or through draws? |
| Draw process | Who inspects, how fast are draws released, and how many are allowed? |
| Extensions | Is an extension available, at what cost, and what has to be true to get it? |
| Exit fit | Can the same lender refinance you into a long-term DSCR loan? |
New Castle County, including Wilmington and Newark, has older rowhomes, twins and small multifamily close to the Philadelphia metro, plus student rental demand around the University of Delaware. Kent County, centered on Dover, offers lower prices and demand tied to state government and Dover Air Force Base.
Sussex County has grown quickly, with new construction and resale homes near Rehoboth Beach, Lewes, Milton and the inland towns. Beach-area properties often serve as vacation rentals, so check town rules, licensing and HOA restrictions before planning a short-term rental exit.
LendingStreet is a direct lender to real estate investors. Our investor loans are business-purpose loans on non-owner-occupied property, and our bridge program covers residential properties from one to eight units.
The same team can also refinance a finished, rented property into a DSCR rental loan that qualifies on rent rather than tax returns, so a Delaware investor can plan the bridge and the long-term loan together. Tell us the purchase price, rehab budget and exit when you request a quote.
On a renovation, most bridge lenders hold the rehab budget and release it in draws as work is completed. You or your contractor finish a phase, an inspector confirms it, and the lender releases the funds for that phase. A detailed budget with line items makes each draw faster.
Permitting is handled by the county or the municipality, and Wilmington, Newark and the beach towns each have their own requirements. Older Wilmington rowhomes often need full systems updates, while coastal properties bring flood elevation and insurance into the rehab planning.
Bridge loans are short-term, so the exit matters from day one. Most end in a sale or a refinance into a long-term DSCR loan that qualifies on the property's rent instead of your tax returns. If the project might run long, ask about extensions before you close, not when the maturity date is close.
Delaware's property taxes are relatively low compared with neighboring states, which helps a DSCR refinance. In Sussex County, a vacation rental may qualify on projected short-term income on some programs, if local rules allow it.
Delaware charges a realty transfer tax made up of a state portion and, in many places, a local portion. It is commonly split between buyer and seller, though the contract controls, and it adds a meaningful amount to the cost of buying. Confirm the rate for the specific municipality and who pays it with your title company or attorney.
This example is illustrative and not a quote. An investor buys a brick rowhome in Wilmington for $195,000 with a rehab budget of $55,000 and an expected after-repair value of $295,000. Using a sample structure of 80% of the purchase price plus 100% of the rehab budget, the bridge loan is $211,000, and the investor brings $39,000 plus closing costs at purchase.
Interest-only, the payment at the full balance is about $1,758 a month, and 6 months at that level is about $10,550; actual interest is usually lower because rehab funds are drawn over time. After the work, the investor refinances into a DSCR loan at 75% of the $295,000 value, or $221,250. That pays off the $211,000 bridge loan and returns about $10,250 before closing costs. On a 30-year schedule, principal and interest is about $1,509; with $360 a month in taxes and insurance, the payment is about $1,869 against $2,100 in rent, a DSCR of about 1.12x.
| Item | Amount |
|---|---|
| Purchase price | $195,000 |
| Rehab budget | $55,000 |
| Sample bridge loan (80% of purchase + 100% of rehab) | $211,000 |
| Investor cash at purchase (before closing costs) | $39,000 |
| Interest-only payment at full balance | $1,758 a month |
| Interest over 6 months (upper estimate) | $10,550 |
| DSCR refinance at 75% of $295,000 | $221,250 |
| Cash back after bridge payoff (before closing costs) | $10,250 |
| New payment with taxes and insurance | About $1,869 |
| DSCR at $2,100 rent | About 1.12x |
Use these to compare lenders and keep your own file moving.
The best lender is the one whose speed, leverage, rehab funding, draw process and extension terms fit your deal. LendingStreet offers residential investor bridge loans in Delaware from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days.
LendingStreet can close bridge loans in as little as 10 days when title, insurance and documents are ready. Delays usually come from title issues, insurance or missing paperwork.
Some LendingStreet bridge programs do not require an appraisal, which can speed up closing. Others do, depending on the deal. Ask which program fits your property.
Yes. Many investors refinance into a DSCR rental loan once the work is done and the property is rented. DSCR loans qualify on rent, with no W-2s or tax returns, and cash-out goes up to 75% LTV.
Yes. LLC borrowers are welcome. You will typically sign for the loan personally as well, and the lender will want the LLC's formation documents.
Mostly because of the realty transfer tax, which combines a state and often a local portion and is among the higher rates in the country. It is commonly split between buyer and seller. Confirm the total with your title company.
Yes, if it is a 1-8 unit investment property. Check town rules and HOA restrictions on short-term rentals, flood insurance requirements and your exit plan before you close.
Yes. The residential bridge program covers 1-8 unit investment properties, including small 5-8 unit buildings. Buildings with nine or more units fall under commercial lending; see our multifamily loans page for those.
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