Louisville's older neighborhoods have shotgun houses, Victorian homes and small duplexes, often at prices that leave room for renovation. A bridge loan handles the purchase and the rehab, then hands off to a DSCR refinance.
In short: LendingStreet offers residential bridge loans in Louisville 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 renovate shotguns, duplexes and older homes before refinancing into a DSCR loan. Kentucky's deed transfer tax is modest, and the Louisville Metro rental registry is the local item to check.
Germantown, Schnitzelburg, Shelby Park, Portland and Butchertown are known for shotgun and camelback homes. Old Louisville has large Victorians, many converted into apartments, and the Highlands and Crescent Hill have bungalows and duplexes.
Many older homes need roofs, foundations, electrical and plumbing. The University of Louisville, the medical district and the logistics economy around the airport support rental demand.
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 Louisville.
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 Louisville fall into a few patterns. The common thread is speed, a property a long-term lender will not finance yet, or both.
Louisville's older housing often trades between investors and estates, with sellers who value a fast, certain close. A bridge loan lets you buy on those terms and handle the renovation before refinancing.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Shotgun renovation | Germantown, Schnitzelburg, Shelby Park | Condition rules out a permanent loan at purchase |
| Victorian conversion value-add | Old Louisville | Units need work before rents reach market |
| Duplex update | Highlands, Crescent Hill | Units need turnover before refinance |
This example is illustrative and not a quote. An investor buys a dated duplex in the Highlands and renovates both units before leasing. The purchase price is $260,000, the rehab budget is $60,000 and the investor expects an after-repair value of $380,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $268,000 in total. Interest on the full balance is about $2,122 a month, or about $14,852 over a 7-month hold. The investor brings the $52,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $380,000 value is $285,000, which pays off the $268,000 bridge balance with about $17,000 left over before closing costs., principal and interest is about $1,944. With taxes of $300 and insurance of $140 a month, the payment is about $2,384. Rent of $2,700 gives a DSCR of about 1.13x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $260,000 |
| Rehab budget | $60,000 |
| Bridge loan (80% of price plus rehab) | $268,000 |
| Monthly interest | $2,122 |
| Interest over 7 months | $14,852 |
| DSCR refinance at 75% of $380,000 | $285,000 |
| Monthly payment with taxes and insurance | $2,384 |
| DSCR at $2,700 rent | About 1.13x |
Kentucky charges a modest deed transfer tax, plus title and recording fees. Closing costs are lower than in many states.
Jefferson County property taxes include state, county, school and other levies. Ask for the current bill and budget on the full assessed value.
Louisville Metro requires many rental properties to be registered. Confirm current rules before you lease. Several neighborhoods, including Old Louisville and Butchertown, are local preservation districts where exterior changes need approval.
Areas near the Ohio River and Beargrass Creek can be in mapped flood zones. Check flood maps and get insurance quotes early.
Some Old Louisville Victorians have been divided into several apartments over the years. Confirm that the unit count is legal with Metro before you buy, because the appraiser and the DSCR lender will underwrite only the units the property is allowed to have.
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.
Louisville rents and moderate taxes often support full-leverage DSCR refinances on duplexes. Shotguns may be smaller, so confirm the loan size works.
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.
Louisville Metro requires many rentals to be registered. Confirm current requirements with Metro before you lease.
Yes, but exterior work in local preservation districts usually needs approval. Plan the timeline around it.
Kentucky charges a modest deed transfer tax. Your title company can confirm the amount.
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.
Residential investor bridge loans run from $150,000 to $5M+ on 1 to 8 unit property. The amount depends on the purchase price, rehab budget, after-repair value and your experience.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home the borrower lives in.
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.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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