Fort Worth investors compete for older homes near downtown, TCU and the Near Southside, and many of them need foundations, roofs and full updates. A bridge loan gets you to closing fast and carries the rehab until a DSCR refinance.
In short: LendingStreet offers residential bridge loans in Fort Worth 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 and renovate older homes, duplexes and small plexes before refinancing into a DSCR loan. In Fort Worth, property taxes, foundation repairs and hail insurance are the costs that most often change the deal.
Older Fort Worth neighborhoods such as Fairmount, Ryan Place, Arlington Heights, Polytechnic and Riverside have early 1900s bungalows, Tudors and small duplexes. The Near Southside and the areas around TCU draw students, medical workers and young professionals.
Many older homes sit on expansive clay soils and need foundation work, and pier-and-beam houses are common. Newer suburbs to the north and west add homes that need little work but cost more.
A conventional mortgage is slow and wants a property that is already in good shape. A bridge loan is the opposite: fast, short-term and interest-only, made for a property that needs work or needs to be bought before a permanent loan can be arranged. LendingStreet's residential bridge loans run from $150,000 to $5M+ on 1 to 8 unit investment property, with rates from 7.99%.
Closings can happen in as little as 10 days, and some programs need no appraisal. Underwriting centers on the deal itself: what you are paying, what the rehab costs, what the property will be worth and rent for when it is done, and whether you plan to sell or refinance into a DSCR loan in Fort Worth.
Bridge loans cost more per month than a 30-year loan, which is why the hold should be short and the plan specific. Count interest, purchase closing costs, lender fees and exit costs, and give yourself a few months of cushion for contractors and permits.
Bridge loans are not for every purchase. In Fort Worth, they tend to earn their cost in deals like these.
Fort Worth has grown fast, and close-in neighborhoods near downtown and the medical district have seen strong demand from renters. Older homes there often need foundation and systems work that rules out a conventional loan at purchase.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Older home renovation | Polytechnic, Riverside, Ryan Place | Foundation and systems work before long-term financing |
| Duplex value-add | Near TCU, Near Southside | Units need turnover before refinance |
| Historic district rehab | Fairmount, Arlington Heights | Carry the property through approvals and renovation |
This example is illustrative and not a quote. An investor buys a dated duplex near TCU, levels the foundation and renovates both units before leasing. The purchase price is $380,000, the rehab budget is $70,000 and the investor expects an after-repair value of $500,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $374,000 in total. Interest on the full balance is about $2,961 a month, or about $20,726 over a 7-month hold. The investor brings the $76,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $500,000 value is $375,000, which pays off the $374,000 bridge balance with about $1,000 left over before closing costs., principal and interest is about $2,558. With taxes of $900 and insurance of $220 a month, the payment is about $3,678. Rent of $3,900 gives a DSCR of about 1.06x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $380,000 |
| Rehab budget | $70,000 |
| Bridge loan (80% of price plus rehab) | $374,000 |
| Monthly interest | $2,961 |
| Interest over 7 months | $20,726 |
| DSCR refinance at 75% of $500,000 | $375,000 |
| Monthly payment with taxes and insurance | $3,678 |
| DSCR at $3,900 rent | About 1.06x |
Texas has no real estate transfer tax and no state income tax. Closing costs are mostly title insurance, escrow and recording fees.
Local property taxes are high, and the homestead exemption only applies to owner-occupied homes. Pull the Tarrant Appraisal District record to see every taxing unit, and budget on the full rate with no homestead exemption.
Foundation repair is one of the most common line items on Fort Worth rehabs. Get a structural inspection and a written repair bid early, and ask whether the work comes with a transferable warranty from the foundation company.
North Texas sees frequent hail, so get insurance quotes with the wind and hail deductible. In local historic districts such as Fairmount, exterior changes usually need approval before work starts.
If you plan to keep the property, run the DSCR math on day one, not month nine. A DSCR loan qualifies on the rent divided by the full payment, including taxes and insurance, and cash-out is capped at 75% LTV. The minimum credit score is 620 and LLC borrowers are standard. Seasoning before cash-out varies by program.
Because Texas taxes are high, the tax line often decides whether the DSCR refinance clears 1.0x. Run the refinance with the full tax rate from day one.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote, use the form below. The items that speed up a Fort Worth file are listed here.
They matter most for the exit. The DSCR refinance includes taxes in the payment, and investors do not get the homestead exemption.
No. It is common in Fort Worth. Include a structural report and repair bid in the rehab budget.
Exterior changes in local historic districts usually need city approval. Check with the city before setting the timeline.
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.
Yes. Residential bridge loans cover 1 to 8 units. Buildings with 9 or more units are commercial and are handled through our commercial and multifamily programs.
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