New York City deals move on timelines set by estates, partnerships and sellers who want certainty. A bridge loan gets an investor to the closing table quickly on a two-family in Queens or a three-family in the Bronx, then hands off to long-term financing once the building is stabilized.
In short: LendingStreet offers residential bridge loans in New York City 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. Most NYC requests involve one- to four-family homes in the outer boroughs that need renovation or a quick close. New York's mortgage recording tax, transfer taxes and rent regulation on some 6+ unit buildings are the local issues to run early.
Outside Manhattan, the city's small rental stock is mostly attached and semi-attached one- to four-family homes: brick two-families in Queens neighborhoods like Ridgewood and Jackson Heights, brownstones and limestones in Brooklyn's Bed-Stuy and Crown Heights, frame and brick three-families in the Bronx, and detached homes on Staten Island.
Many of these change hands through estates, family partnerships or long-time owners who have deferred maintenance for years. Buyers who can close quickly and take the building as it is often get the better price.
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 York City. 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 York City investors most often reach for short-term financing instead of a permanent loan.
Speed and certainty are what NYC sellers pay for. Estates, co-owners splitting up and sellers buying elsewhere often accept a lower offer from a buyer who can close on a fixed date without a long mortgage contingency. A bridge loan gives you that certainty, and the long-term loan can follow once the building is leased.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Estate sale two- or three-family | Queens, the Bronx, Brooklyn | Executors want a firm close; the building needs work |
| Brownstone renovation | Bed-Stuy, Crown Heights, Bushwick | Gut or partial rehab before permanent financing |
| Buy before you sell | All five boroughs | Close on a new building while another property is on the market |
This example is illustrative and not a quote. An investor buys a three-family in the northeast Bronx with two vacant units and plans renovations to all three apartments. The purchase price is $900,000, the rehab budget is $180,000 and the investor expects an after-repair value of $1,250,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $900,000 in total. Interest on the full balance is about $7,125 a month, or about $71,250 over a 10-month hold. The investor brings the $180,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $1,250,000 value is $937,500, which pays off the $900,000 bridge balance with about $37,500 left over before closing costs., principal and interest is about $6,395. With taxes of $520 and insurance of $350 a month, the payment is about $7,265. Rent of $8,100 gives a DSCR of about 1.11x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $900,000 |
| Rehab budget | $180,000 |
| Bridge loan (80% of price plus rehab) | $900,000 |
| Monthly interest | $7,125 |
| Interest over 10 months | $71,250 |
| DSCR refinance at 75% of $1,250,000 | $937,500 |
| Monthly payment with taxes and insurance | $7,265 |
| DSCR at $8,100 rent | About 1.11x |
New York State and New York City both levy a mortgage recording tax on new loans, and it is a meaningful cost on a bridge loan and again on the refinance. Transfer taxes apply at both the state and city level as well, typically paid by the seller, plus title insurance and attorney fees.
These costs are higher than in most states, so put them in your budget before you make an offer. Your attorney and title company can give current figures.
Rent stabilization generally applies to buildings with six or more units built before 1974, so a 6 to 8 unit building may carry regulated apartments that limit rent increases. One- to five-unit buildings are usually not stabilized, but confirm each unit's status before you underwrite the rent.
Renovations need Department of Buildings permits, and Local Law 18 restricts most short-term rentals under 30 days. Underwrite NYC rentals on 12-month leases.
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.
For the DSCR refinance, NYC appraisers will want comparable rents and sales on the same block or nearby. Signed leases at market rent and a clean certificate of occupancy make the refinance smoother.
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.
Yes, new mortgages in New York are generally subject to the mortgage recording tax. Ask your attorney for current rates and budget for it on both the bridge loan and the refinance.
Rent-stabilized units limit how much rent can rise after renovation, which affects your exit. Most investor bridge requests in NYC involve one- to four-family homes that are not stabilized.
Yes. Most requests are in Queens, Brooklyn, the Bronx and Staten Island, where one- to four-family homes make up much of the small rental stock.
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.
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.
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