Boston's rental stock is old, dense and expensive, and the best triple-deckers rarely sit on the market long enough for a slow lender. A bridge loan lets you close on the house first and sort out the long-term financing after the work is done.
In short: LendingStreet offers residential bridge loans in Boston from $150,000 to $5M+ on 1 to 8 unit investment property, with rates from 7.99% and closings in as little as 10 days. Investors use them to buy triple-deckers, two-families and estate-sale houses that need work, then refinance into a DSCR loan once the units are leased. In Boston, plan early for lead paint compliance, the smoke and CO certificate required at sale and higher property taxes on non-owner-occupied homes.
Much of Boston's small multifamily housing dates from the late 1800s and early 1900s. The triple-decker is the signature building in Dorchester, Roxbury, Jamaica Plain, East Boston and parts of Brighton, and nearby Somerville, Cambridge, Quincy and Chelsea have their own stock of two- and three-family homes.
Many of these buildings come to market after decades with one owner, with original systems, tired kitchens and units that need full turnovers. A conventional lender may balk at the condition. A bridge loan can close on the building as it is and carry it through the renovation and lease-up.
A bridge loan is short-term, interest-only financing for an investor who needs to close before long-term financing makes sense. LendingStreet's residential bridge loans cover 1 to 8 unit investment property, from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Some bridge programs require no appraisal, which helps when a seller wants a quick, clean close.
The loan is built around the exit. You either sell the property or refinance it into a 30-year DSCR loan once it is renovated and leased. We look at the purchase price, the rehab scope and budget, the expected after-repair value, your track record and how realistic that exit is in Boston.
Your total cost is more than the rate. Budget for interest during the hold, closing costs on the purchase, any lender fees and the closing costs of the refinance or sale at the end. The bridge loan cost calculator can help you add these up before you make an offer.
Most bridge requests in Boston fall into a few patterns. The common thread is speed, a property a long-term lender will not finance yet, or both.
Timing matters more in Boston than in most cities. Much of the rental market turns over on September 1, when students and new graduates move, so a triple-decker bought in the spring has to close quickly to be renovated and leased by late summer. Miss that window and units can sit empty for months.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Triple-decker value-add | Dorchester, Roxbury, East Boston | Old systems and dated units need work before long-term financing |
| Estate or probate sale | Jamaica Plain, Roslindale, West Roxbury | Sellers and attorneys want a fast, certain close |
| Student-area turnover | Allston, Brighton, Mission Hill | Close and renovate in time for the September lease cycle |
This example is illustrative and not a quote. An investor buys a dated Dorchester triple-decker with three vacant units and plans new kitchens, baths and deleading before leasing. The purchase price is $1,000,000, the rehab budget is $160,000 and the investor expects an after-repair value of $1,350,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $960,000 in total. Interest on the full balance is about $7,600 a month, or about $68,400 over a 9-month hold. The investor brings the $200,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $1,350,000 value is $1,012,500, which pays off the $960,000 bridge balance with about $52,500 left over before closing costs., principal and interest is about $6,907. With taxes of $1,230 and insurance of $450 a month, the payment is about $8,587. Rent of $9,300 gives a DSCR of about 1.08x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $1,000,000 |
| Rehab budget | $160,000 |
| Bridge loan (80% of price plus rehab) | $960,000 |
| Monthly interest | $7,600 |
| Interest over 9 months | $68,400 |
| DSCR refinance at 75% of $1,350,000 | $1,012,500 |
| Monthly payment with taxes and insurance | $8,587 |
| DSCR at $9,300 rent | About 1.08x |
Massachusetts charges a deed excise tax on the transfer, customarily paid by the seller, plus recording fees at the Suffolk County Registry of Deeds. Closings are usually handled by attorneys, so build legal fees into your budget.
Boston's residential exemption only applies to owner-occupied homes, so an investor's tax bill is often higher than the seller's. Budget on the full rate, and confirm current figures with the city assessor.
Nearly every triple-decker was built before 1978, and the Massachusetts Lead Law requires deleading when a child under six lives in a unit. Many investors delead during the rehab so the units can be rented to any family. A smoke and carbon monoxide certificate from the fire department is required at sale.
Boston's Inspectional Services Department handles building permits, and the city runs a rental registration and inspection program. Confirm current requirements before you set your timeline.
Most rental investors exit by refinancing into a DSCR loan, which qualifies on the property's rent, with a 620 minimum credit score, LLC borrowers standard and 30-year terms available. Cash-out goes up to 75% LTV, and the rent has to cover the new payment at the program minimum, 1.0x on standard programs. Cash-out seasoning varies by program, so ask about timing before you close the bridge.
In Boston, the refinance appraisal often leans on recent two- and three-family sales in the same neighborhood. Keep receipts and permits from the rehab, and have signed leases in place before you apply.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, the price and the plan through the form below, and the team will come back with options sized to the deal.
The rehab budget can include deleading and other lead work. Get a licensed deleader's quote early so the budget and timeline are realistic.
Massachusetts closings are typically handled by attorneys. Your closing attorney coordinates title, the deed and recording.
Often, yes. The residential exemption only applies to owner-occupied homes, so an investor usually pays more than an owner-occupant on the same property.
In as little as 10 days when the title work, insurance and your file are ready. Local title timelines, payoff letters and HOA or municipal requirements can add time, so start those early.
Bridge rates start from 7.99%. Your rate depends on leverage, the property, the rehab scope and your track record. The loan is interest-only, so the monthly payment is interest on the balance.
Talk to us before the maturity date, not after. Build a cushion into the term when you apply, and keep the lender informed if contractors, permits or materials push the schedule.
Not always. Some bridge programs require no appraisal, while others use a valuation. The DSCR refinance at the end will normally include an appraisal, because that loan is sized on value.
Yes. Most investors take bridge loans in an LLC or other entity. You may still need to sign for the loan personally.
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