Good small multi-units rarely sit on the market in Burlington. When one comes up with vacant units or a tight closing date, the buyer who can close fast usually wins. A bridge loan is how investors compete without waiting on a long-term loan.
In short: LendingStreet offers residential investor bridge loans on 1-8 unit properties in Burlington and Chittenden County from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Loans are short-term and interest-only, and some bridge programs require no appraisal. Most investors exit by selling or by refinancing into a long-term DSCR loan.
Burlington's rental market is tight, but individual buildings can still be in transition: a fourplex with units held vacant for repairs, a house where the student leases ended in May and next year is not signed, or an estate property that needs a quick close. Long-term DSCR loans want a leased, stable property. A bridge loan covers the gap.
Bridge loans also help investors who are trading up from a smaller property. If you are selling a duplex and buying a fourplex, a bridge loan can close the purchase first, and you pay it down or refinance once the duplex sale closes.
General terms are below. Your quote depends on the property, the plan and your experience.
Bridge terms are set per deal. A clear plan with a realistic budget and timeline, plus any experience you have with similar buildings, usually leads to better terms and a faster answer.
| Feature | Bridge program |
|---|---|
| Loan size | $150,000 to $5M+ |
| Rates | From 7.99% |
| Speed | As little as 10 days |
| Payments | Interest-only |
| Appraisal | Not required on some bridge programs |
| Exit | Sale or DSCR refinance |
Near UVM and Champlain College, leases usually run June to May and are often signed in the fall or winter for the next year. If you buy a building in spring with units not yet leased for fall, you have a few months to repair and fill them. Miss that window and the units may sit until a mid-year tenant comes along. Plan your bridge term with the leasing calendar in mind.
Outside the student areas, leasing in Burlington runs year-round but slows in the coldest months. In Winooski and the New North End, a renovated unit usually leases quickly at market rent, which helps keep a bridge term short.
This example is illustrative and not a quote. An investor buys a fourplex in Burlington's South End for $780,000, with two units vacant and needing paint, flooring and kitchen updates. The bridge loan is 75% of the price, or $585,000, with estimated interest-only payments of about $5,119 a month.
After the work, all four units lease at about $1,900, for $7,600 a month, and the building is valued at $840,000. A DSCR refinance at 75% LTV gives a new loan of $630,000, enough to pay off the bridge. With estimated principal and interest of about $4,298, taxes of $1,400 at the non-homestead rate and insurance of $340, the payment is about $6,038 and the DSCR is about 1.26x.
The investor's cash covers the down payment, the renovation of the vacant units, the transfer tax and other closing costs, and the bridge payments during the work. Keep reserves for surprises in an older building, such as a heating system that fails during the renovation.
| Stage | Amount |
|---|---|
| Purchase price | $780,000 |
| Bridge loan at 75% | $585,000 |
| Estimated monthly interest-only payment | $5,119 |
| Rent after lease-up | $7,600 |
| Value after work | $840,000 |
| DSCR refinance at 75% | $630,000 |
| DSCR after refinance | 1.26x |
Vermont's property transfer tax is paid by the buyer at closing, so include it in your cash needs along with title and recording costs. Before closing, confirm the building's registration with the city's rental program, its inspection history and the approved unit count. Open code violations can delay leasing and the refinance.
For older buildings, a pre-purchase inspection should cover the heating system, wiring, roof, foundation and any signs of lead hazards. Fixing a failed inspection item after closing can delay leasing and push back the refinance.
Run the refinance at the stabilized rent, the non-homestead tax rate and a real insurance quote. If the numbers do not clear 1.0x at the refinance, adjust your price or your plan now. If you intend to sell instead, look at recent sales of similar buildings in that neighborhood.
Seasoning rules on the refinance side also matter. Some DSCR programs look at how long you have owned the property before they use the new appraised value. Ask about this before you pick the bridge term so the timeline covers the full path.
A heavy rehab with permits and major systems work fits a fix and flip loan with rehab draws. A leased, stable building can go straight to a DSCR loan. Bridge loans are for the middle: light work, lease-up or a timing gap.
Many Burlington investors use more than one of these over a building's life: a bridge loan to buy, a short lease-up, and then a long-term DSCR loan.
Bridge loans work the same way across Chittenden County. In Winooski, investors buy older mill-era multi-units near the downtown roundabout and the Winooski River. In South Burlington and Essex Junction, deals are more often condos, townhomes and newer duplexes that need light work before leasing.
Each town has its own municipal tax rate, permitting office and rental rules, so check them for the specific property. The education tax on rentals is figured at Vermont's non-homestead rate everywhere in the state.
Get a quote with the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. See our Vermont bridge loan page for statewide details.
Rates start from 7.99%, depending on the property, leverage, plan and experience.
Some bridge programs do not require one. Larger or more complex loans may need a valuation.
Yes. A bridge loan can close the purchase and give you time to repair and lease units before refinancing.
The buyer pays it at closing. Include it in your cash to close.
By selling, or by refinancing into a DSCR loan once the property is leased and the rent covers the payment.
Yes. We lend on 1-8 unit investment properties across Chittenden County.
Short-term, sized to your plan, with interest-only payments.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.