New Orleans investors buy shotgun doubles, camelbacks and Creole cottages that are often a century old. A bridge loan closes the purchase quickly and funds the renovation before the property moves to long-term financing.
In short: LendingStreet offers residential bridge loans in New Orleans 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 shotgun doubles and older homes, then refinance into a DSCR loan. Insurance, flood zones, historic district approvals and strict short-term rental rules shape almost every New Orleans deal.
Neighborhoods like Mid-City, Bywater, the Seventh Ward, Treme, Holy Cross and Gentilly are full of shotgun singles and doubles, camelbacks and raised cottages. Many have original millwork and high ceilings but need new systems, roofs and foundation work.
The shotgun double is a classic investor building: two units side by side under one roof. Renovating a double and leasing both sides is one of the most common New Orleans bridge-to-DSCR plays.
Think of a bridge loan as the money that gets you from contract to a stabilized rental. It is interest-only and short-term, so the monthly carry stays lower while the property is vacant or under renovation. LendingStreet funds residential bridge loans on 1 to 8 unit investment property from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days.
On some bridge programs there is no appraisal, which can shorten the timeline when you are competing with cash buyers in New Orleans. Every deal still needs a clear exit: a sale, or a refinance into a long-term DSCR loan that qualifies on the property's rent rather than your tax returns.
Before you sign a contract, add up the full cost of the bridge: monthly interest over a realistic hold, closing costs going in, lender fees and the cost of the exit. A few extra months of interest can change the return, so build a cushion into the timeline.
These are the situations where New Orleans investors most often reach for short-term financing instead of a permanent loan.
Many New Orleans properties have deferred maintenance from years of storms and changing ownership. Conventional lenders often will not finance a house with structural, roof or electrical problems, but a bridge loan can.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Shotgun double renovation | Mid-City, Bywater, Seventh Ward | Old systems and structure work before long-term financing |
| Historic district rehab | Treme, Marigny, Holy Cross | Carry the property through approvals and renovation |
| Estate sale purchase | Gentilly, Uptown | Heirs want a fast close; the house needs work |
This example is illustrative and not a quote. An investor buys a shotgun double in Mid-City with both sides vacant and renovates them, including new electrical and plumbing. The purchase price is $340,000, the rehab budget is $110,000 and the investor expects an after-repair value of $520,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $382,000 in total. Interest on the full balance is about $3,024 a month, or about $27,218 over a 9-month hold. The investor brings the $68,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $520,000 value is $390,000, which pays off the $382,000 bridge balance with about $8,000 left over before closing costs., principal and interest is about $2,660. With taxes of $380 and insurance of $550 a month, the payment is about $3,590. Rent of $3,700 gives a DSCR of about 1.03x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $340,000 |
| Rehab budget | $110,000 |
| Bridge loan (80% of price plus rehab) | $382,000 |
| Monthly interest | $3,024 |
| Interest over 9 months | $27,218 |
| DSCR refinance at 75% of $520,000 | $390,000 |
| Monthly payment with taxes and insurance | $3,590 |
| DSCR at $3,700 rent | About 1.03x |
Louisiana closings are handled by notaries and attorneys, with title, recording and parish fees. Orleans Parish has its own transfer and recording charges, so ask your closing attorney for current figures.
Insurance is often the largest cost after the loan payment. Wind, hurricane and flood coverage can be expensive, and roof age and elevation affect pricing.
Much of New Orleans is in a mapped flood zone, so flood insurance is often required. An elevation certificate can affect the premium. Formosan termites are common in older wood homes, so get an inspection.
Many neighborhoods are under the Historic District Landmarks Commission, and exterior work needs approval. New Orleans strictly limits short-term rentals in residential areas, so underwrite on long-term rents.
The cleanest exit is a DSCR refinance once the work is done and the units are leased. That loan is sized on value, up to 75% LTV on cash-out, and qualified on rent, with no W-2s or tax returns. The standard minimum DSCR is 1.0x, and sub-1.0 programs exist for some properties. Seasoning rules for cash-out vary by program, so plan the calendar early.
On New Orleans refinances, insurance often decides the ratio. Get updated quotes after the rehab, since new roofs and systems can help.
Our investor loans are business-purpose loans on non-owner-occupied property. A complete file gets a faster answer, so use the form below to get a quote and have these items ready.
New Orleans strictly limits short-term rentals in residential areas. Plan the exit around long-term leases unless the property clearly qualifies.
Wind and flood premiums are high. They count in the DSCR payment, so they affect how much you can borrow on the refinance.
Exterior work in many New Orleans neighborhoods needs approval from the Historic District Landmarks Commission. Build that time into your plan.
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.
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.
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