A bridge loan buys time on a larger residential deal: to close fast, to stabilize a property, or to free up equity before a sale or long-term refinance.
In short: LendingStreet offers residential investor bridge loans from $500,000 to $5M, with larger balances considered case by case. Rates start from 7.99%, loans can close in as little as 10 days, and some bridge programs require no appraisal. Bridge loans are short-term, interest-only payments are common, and the exit is a sale or a refinance, often into a DSCR rental loan. At larger balances, the strength of the exit plan and your liquidity matter as much as the property.
Bridge loans solve timing problems. A long-term DSCR loan needs a leased, stable property and time for full underwriting. A bridge loan does not, which makes it useful when the property or the calendar is not ready yet.
At $500K to $5M, the common reasons are the same as on smaller loans, but the stakes are higher. A missed closing on a $2M purchase or a maturing loan on a $3M property costs real money.
A bridge loan is not the cheapest long-term money, and it is not meant to be. It is a tool for a specific gap, with a clear plan for how and when the loan will be paid off.
| Situation | How the bridge helps | Typical exit |
|---|---|---|
| Competitive purchase | Close in as little as 10 days | DSCR refinance or sale |
| Vacant or unstabilized rental | Finances before it qualifies on rent | DSCR refinance after lease-up |
| Buy before you sell | Funds the new deal while the old one is listed | Sale of the other property |
| Maturing loan | Pays off a balloon or hard money loan | Sale or long-term refinance |
| Equity for the next deal | Cash out of an owned rental quickly | DSCR cash-out refinance or sale |
Bridge loans are sized against the property's value and the deal's cost, with leverage that varies by program and property. On larger balances, expect more conservative leverage and a closer look at the exit.
Some bridge programs require no appraisal and use other valuation methods, which can save time. Others use a full appraisal, especially on high-value or unusual properties. Ask early which applies to your deal, because valuation is usually what sets the closing date.
Loan amount also depends on what you need the money for. A purchase is sized against price and value. A payoff of a maturing loan is sized against value and the payoff amount. A cash-out bridge is sized against value, and the lender will ask how the funds will be used, which must be for business purposes.
Bridge rates start from 7.99%, and larger balances are priced case by case. Payments are often interest-only, so the monthly cost is the balance times the rate divided by 12. That keeps payments lower than an amortizing loan, but nothing pays down the principal.
Closing costs include lender and third-party costs such as title, insurance and any valuation. Because the loan is short-term, compare offers on total cost over your expected hold, not only on the rate.
Experience and leverage usually move bridge pricing the most. An investor who has completed several similar projects, and who is borrowing at lower leverage, will often see better terms than a first-time borrower at maximum leverage.
This example is illustrative and not a quote. An investor buys a vacant duplex for $1,400,000 and needs to close quickly. A bridge loan of $1,050,000 (75% of the purchase price, a sample leverage figure; bridge leverage varies by program) funds the purchase. At a sample rate of 9.5% interest-only, the payment is about $8,313 a month.
The investor leases both units within 6 months. Interest over that time is about $49,875. A new appraisal values the property at $1,500,000 with a rent schedule of $9,000 a month.
The investor refinances into a DSCR loan of $1,050,000 to pay off the bridge. At a sample 7.0% rate on a 30-year fixed, principal and interest is about $6,986. With taxes and insurance of $1,700, the full payment is about $8,686 and the DSCR is about 1.04x. The new loan is 70% of the new value, so the refinance does not depend on maximum leverage.
Interest-only payments scale directly with the balance. The table shows monthly interest at the 7.99% starting rate and at a sample 9.5% rate, plus six months of interest at the sample rate. These figures are illustrative; your rate depends on the deal, leverage and your experience.
Six months is not a loan term here; it is a sample hold period to show how quickly carrying cost adds up. On a $2.5M loan, every extra month of delay costs roughly $20,000 at the sample rate, so a realistic timeline matters as much as the rate.
| Loan amount | Monthly interest at 7.99% | Monthly interest at sample 9.5% | Six months at sample 9.5% |
|---|---|---|---|
| $500,000 | $3,329 | $3,958 | $23,750 |
| $1,000,000 | $6,658 | $7,917 | $47,500 |
| $2,500,000 | $16,646 | $19,792 | $118,750 |
| $5,000,000 | $33,292 | $39,583 | $237,500 |
On a large bridge loan, the exit is the plan. If the exit is a DSCR refinance, estimate the rent, taxes and insurance now and check that the ratio clears 1.0x at a realistic rate. If the exit is a sale, look at how long similar properties take to sell at your price.
Seasoning rules on the refinance vary by program. Some allow a refinance with little or no seasoning; others want several months of ownership or cap the new loan at the purchase price plus documented improvements. Know which applies before you count on pulling cash out.
In the example above, if the lease-up took twelve months instead of six, interest on the bridge would double to about $99,750. That is why the exit timeline, not only the rate, should drive the decision.
The program does not change at set dollar marks, but the review tends to deepen as the balance grows. Here is how files typically differ across the range.
| Loan size | Typical property | What gets more attention |
|---|---|---|
| $500K to $1M | Higher-value single-family or 2-4 unit | Exit plan, valuation support |
| $1M to $2.5M | Luxury homes, larger 2-4 unit buildings, small apartment buildings | Liquidity, experience, valuation method |
| $2.5M to $5M+ | 5+ unit residential, groups of rentals | Business plan, reserves, case-by-case pricing |
Lenders look at the property, the plan and the borrower together. A strong property with no clear exit is a weak file. A clear exit with thin liquidity is a weak file too.
At $2.5M and above, expect the financing team to ask for a short written business plan: what you are buying, what changes during the bridge, what the property is worth afterward and how the loan is repaid. A one-page plan with numbers is usually enough.
If the property needs a real renovation, a fix and flip loan, which funds up to 100% of rehab in draws, is usually the better tool. If the property is already leased and stable, a DSCR loan avoids the bridge step and its cost.
A bridge loan fits the middle: properties that are mostly ready but not yet qualified on rent, or deals where speed matters more than the lowest long-term rate. Many investors use a bridge, then a DSCR refinance.
If you are unsure which fits, send the scenario with the property's condition, current occupancy and your plan. The financing team can compare a bridge, a fix and flip loan and a DSCR loan side by side.
Speed on a bridge loan depends on documents. Send the scenario and the financing team will come back with 2–3 options.
Bridge loans start at $150,000, and loans from $500,000 to $5M are common for larger residential deals. Larger balances are considered case by case.
From 7.99%, with larger balances priced case by case. Payments are often interest-only.
In as little as 10 days when the file is complete and valuation and title move quickly.
Some bridge programs require no appraisal. Others, especially on high-value or unusual properties, use a full appraisal. It depends on the program and the deal.
Bridge loans are short-term financing. The specific term depends on the program; your term sheet states it.
Experience with similar properties and loan sizes helps a great deal at larger balances. Investors with less experience may still qualify, often at lower leverage or with more liquidity.
Yes. That is one of the most common exits. The DSCR loan qualifies on the property's rent once it is leased.
No. Our bridge loans are business-purpose loans on non-owner-occupied investment property only.
Bridge financing can work for 5+ unit residential buildings that need to be stabilized, often followed by a multifamily loan underwritten on NOI.
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