Allentown is a city of brick rowhomes, twins and big houses cut into apartments, and the Lehigh Valley has drawn renters priced out of New Jersey and the New York area. Good buildings move fast, and many need new leases or a city license before a long-term lender will look at them.
In short: LendingStreet offers bridge loans on 1-8 unit investment property in Allentown and across Lehigh and Northampton counties, from $150,000 to $5M+ with rates from 7.99%. Loans are short-term and interest-only, can close in as little as 10 days, and some programs need no appraisal. Investors use them to buy, re-lease and license a building, then refinance into a DSCR loan or sell.
Center City and Old Allentown hold dense rows of three-story brick homes, many converted to two or three apartments. The West End, around the 19th Street theater district and the parks, has larger single-family homes and twins that lease to professionals. The East Side and South Side offer smaller rowhomes and twins at lower prices.
Bethlehem, home to Lehigh University, and Easton, home to Lafayette College, add student and workforce rentals in older housing. Whitehall, Emmaus, Catasauqua and the townships carry newer singles and townhomes with higher prices and fewer repair surprises.
| Area | Typical housing | Common bridge use |
|---|---|---|
| Center City, Old Allentown | Brick rowhomes, 2-3 unit conversions | Buy with vacancies, license, re-lease, refinance |
| West End | Larger singles and twins | Fast purchase, light updates, long-term lease |
| Bethlehem, Easton | Older rows and twins near colleges | Student and workforce rentals bought from exiting landlords |
| Whitehall, Emmaus, townships | Newer singles and townhomes | Quick close ahead of a DSCR refinance |
Many Allentown conversions come to market half-empty or with leases years below market, and some lack a current rental license. Until the units are licensed and leased, the income will not support the long-term loan you eventually want. A bridge gets you the building now and gives you a few months to bring it up to standard.
Competition from out-of-area buyers is real in the Lehigh Valley, and sellers often favor the offer that can close quickly and with fewer conditions.
This example is illustrative and not a quote. An investor buys a three-unit converted rowhouse in Old Allentown for $285,000. Two units are empty. The bridge loan is $213,750, interest-only, so the estimated monthly interest payment is about $1,781 while the investor completes the city rental inspection, paints and leases the empty units.
Roughly 5 months later, the appraisal comes in at $340,000 with rent of $3,450 a month (three units at $1,250, $1,150 and $1,050). Refinancing into a DSCR loan at 75% of value gives $255,000: enough to retire the $213,750 bridge balance with about $41,250 left over, before costs.
Estimated principal and interest on the new 30-year loan is about $1,740. Add taxes of about $475 and insurance of about $175 a month, and the total payment is about $2,390. Rent of $3,450 divided by that payment gives a DSCR of about 1.44x, above the 1.0x standard minimum.
A cushion matters. At 10% less rent, about $3,105 a month, the DSCR would be roughly 1.30x, still above the standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $285,000 |
| Bridge loan | $213,750 |
| Estimated monthly interest-only payment | $1,781 |
| Value after work and leasing | $340,000 |
| New DSCR loan (75% of value) | $255,000 |
| Estimated principal and interest | $1,740 |
| Property taxes (monthly) | $475 |
| Insurance (monthly) | $175 |
| Total monthly payment | $2,390 |
| Monthly rent | $3,450 |
| DSCR | About 1.44x |
Pennsylvania charges a realty transfer tax on the deed: 1% to the state plus local shares to the municipality and school district. The combined rate is commonly 2% or more of the price, and some municipalities charge more. Buyer and seller often split it, but the contract decides, so confirm the exact rate for the property's municipality with your title company.
Lehigh County has not done a countywide reassessment in many years, so assessed values can sit well below market and tax bills are driven by the combined county, city and school district millage. School taxes are usually the largest share. Pull the actual bill rather than estimating from the price.
The City of Allentown licenses rental units and inspects them, and a unit without a valid license can be hard to lease or refinance. Bethlehem, Easton and many boroughs run their own registration or inspection programs. Ask each municipality what applies before you close, and plan any repairs an inspection may require.
Older rowhomes can hide aging electrical service, shared utility lines and lead paint. Budget for them, and keep receipts and permits, since an appraiser for your DSCR refinance will want to see finished, legal units.
Most Allentown bridge loans end in a DSCR refinance once every unit is licensed and leased, since the long-term rent picture is what the Lehigh Valley offers. A sale works for renovated West End singles and suburban homes, where owner-occupant buyers set the price.
A good exit plan starts on day one. Price out the DSCR payment with the post-purchase tax bill and a current insurance quote, and keep a sale price in mind as a backup. Seasoning before a cash-out refinance varies by program, so ask about it up front. For statewide context, see our Pennsylvania bridge loans page.
Allentown bridge loans are sized for residential investment property of 1 to 8 units. The payment is interest-only for the short term of the loan, which keeps carrying costs predictable while you lease or sell.
Leverage and pricing depend on the property, your experience and the exit plan. Larger apartment buildings of 9 or more units fall under our commercial and multifamily programs.
For a Allentown deal, the questions we ask are practical: what you are paying, what the property will be worth and earn once it is ready, how long that takes, and how the bridge gets repaid. Investors who have done similar projects can often move faster.
Our investor loans are business-purpose loans on non-owner-occupied property. In this metro we lend across Lehigh and Northampton counties, including Allentown, Bethlehem, Easton, Whitehall and Emmaus.
To get a quote, share the address, price, current rents, planned work and your exit. A complete file speeds things up: the purchase contract, a rent roll or leases, an insurance quote and your LLC documents. Fill out the form below or call (877) 298-1001.
It depends on the contract. Splitting the state and local transfer tax between buyer and seller is common in Pennsylvania, but confirm the exact rate and split with your title company.
Closings can happen in as little as 10 days once title, insurance and borrower documents are in. Complex deals can take longer.
Plan on it. Licensed, leased units are what a DSCR refinance relies on, and the city licenses and inspects rental units. Get the license work done during the bridge term.
Some of our bridge programs do not require one. The appraisal usually comes later, when you refinance into a long-term DSCR loan.
Yes. We lend on 1-8 unit investment property across Lehigh and Northampton counties, including Bethlehem, Easton, Whitehall and Emmaus.
Rates start from 7.99% and are set per deal based on the property, leverage, experience and exit.
Lehigh County's assessments trace back to an older countywide reassessment, so assessed values can lag market prices. Use the real bill and millage in your numbers.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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