In coastal Florida, some perfectly good investment properties cannot get long-term financing on the day you buy them. The roof is too old to insure at a sane price, a storm left repairs half done, or the tenant just moved out. A bridge loan gets you through that window.
In short: LendingStreet provides residential investor bridge loans on 1-8 unit properties in Daytona Beach and across Volusia County from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Bridge loans are short-term and interest-only, some programs require no appraisal, and the exit is a sale or a refinance into a DSCR rental loan once the property is insurable and leased.
Long-term rental lenders want a property that is insurable at a reasonable premium, in rentable condition and, ideally, leased. Many Volusia County properties miss one of those on the day of purchase, which is exactly what a bridge loan is built for.
In each of these cases, the problem is temporary and fixable. The bridge loan pays for time, and the exit is either a sale to a buyer whose lender can now close, or a DSCR refinance once the property is insurable, repaired and leased. Know which exit you are planning before you sign the contract.
These are business-purpose loans on non-owner-occupied investment property, designed for short holds with a defined exit.
Leverage depends on the property, your experience and whether the program uses an appraisal. Bring cash for the down payment, closing costs, repairs not covered by the loan and the monthly interest during the hold. Interest-only payments keep the monthly cost predictable until payoff.
| Term | Bridge loan |
|---|---|
| Loan amount | $150,000 to $5M+ |
| Property | 1-8 unit residential investment property |
| Rates | From 7.99% |
| Payments | Interest-only |
| Closing | In as little as 10 days |
| Valuation | No appraisal on some bridge programs |
| Exit | Sale or DSCR refinance |
This example is illustrative and not a quote. An investor buys a three-bedroom pool home in mainland Ormond Beach for $360,000. The roof is about 20 years old and the seller's insurer has non-renewed the policy, so many buyers' lenders cannot close. A bridge loan at 75% of the price is $270,000, with an estimated interest-only payment of about $2,250 a month, and the investor carries a short-term policy available for the existing roof.
The investor replaces the roof for about $24,000 with cash, gets a wind mitigation inspection and leases the home for $2,800 a month. Over 4 months, estimated bridge interest is about $9,000. The home appraises at $405,000. A DSCR refinance at 70% LTV is $283,500, with estimated principal and interest of about $1,953, taxes of $480 and a much lower insurance premium of $235. The total payment is about $2,668 and DSCR is about 1.05x.
The math only works because the roof was replaced and the home was leased at a strong rent. Before closing a bridge loan, run this refinance test with conservative figures. If the rent or the insurance comes in worse, the exit may need lower leverage or a sale instead.
| Refinance into DSCR | Amount |
|---|---|
| New loan at 70% LTV | $283,500 |
| Estimated principal and interest | $1,953 |
| Taxes | $480 |
| Insurance after new roof | $235 |
| Total monthly payment | $2,668 |
| DSCR at $2,800 rent | About 1.05x |
A bridge loan still needs insurance at closing. For a home with an old roof or unfinished storm repairs, that may mean a short-term, vacant-property or builder's risk policy with higher cost or limited coverage. Line it up before you sign the contract. A plan to replace the roof in the first weeks, with a roofer already scheduled, helps both the insurer and the lender.
Hurricane season runs June through November. A bridge plan that leaves a property without a roof or windows in late summer adds risk, so schedule exterior work for the drier, quieter months when you can.
After Ian and Nicole in 2022, and later storms, some Volusia homes sold with partial repairs, open insurance claims or open permits. These can be good opportunities, but check the permit history with the city or county, confirm whether the damage plus your repairs could trigger the FEMA substantial damage rule in a flood zone, and get a clear scope. If the repairs are extensive, a fix and flip loan with a rehab budget and draws is usually a better fit than a bridge loan.
When you buy, the property's assessed value resets toward market value, so the seller's tax bill is a poor guide. Use a post-purchase tax estimate in your refinance plan. Florida also charges documentary stamp tax on new notes and an intangible tax on new mortgages, which apply to both the bridge loan and the later DSCR loan; include them in closing costs.
We lend on bridge loans in Daytona Beach, Holly Hill, South Daytona, Port Orange, Ormond Beach, Ponce Inlet, New Smyrna Beach, DeLand, Deltona and the rest of Volusia County. Values, flood zones and short-term rental rules differ widely between them, and we underwrite each property on its own local comparables. Statewide program details are on our Florida bridge loans page.
Each city also has its own building department and permit history to check. Mainland homes in Holly Hill, Port Orange and Ormond Beach are the most common bridge-to-rental candidates, while beachside properties more often exit by sale.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, condition, insurance situation and exit plan. We will tell you what we can lend, how fast we can close and what the exit needs to look like. Use the form below or call (877) 298-1001.
Often yes, if insurance can be bound for the bridge period and the plan includes replacing the roof before a long-term refinance.
Rates start from 7.99%, depending on leverage, property and experience.
Some of our bridge programs do not require an appraisal; others do.
In as little as 10 days with a clean title and insurance in place.
By selling or by refinancing into a DSCR loan once the property is insurable and leased.
Usually a fix and flip loan with a rehab budget and draws fits extensive repairs better.
Yes. Documentary stamp tax on the note and intangible tax on the mortgage generally apply to new loans.
Yes. Our residential bridge loans cover 1-8 unit investment properties.
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