The Roanoke Valley packs a lot of older housing between the mountains: Victorian homes in Old Southwest, bungalows in Grandin and Raleigh Court, and brick ranches in Salem and Vinton. Carilion's medical campus and the area colleges keep renters coming, while older homes keep sellers open to quick, as-is sales.
In short: LendingStreet makes short-term, interest-only bridge loans on 1-8 unit investment property in the City of Roanoke, Roanoke County and Salem, from $150,000 to $5M+ with rates from 7.99%. Loans can close in as little as 10 days, and some programs need no appraisal. Roanoke investors typically use the bridge to buy a house or small multi-unit building that needs updating or leasing, then refinance into a DSCR loan.
Old Southwest has large Victorian homes, many divided into apartments, near downtown and the Carilion Roanoke Memorial campus. Grandin Village, Raleigh Court and Wasena have bungalows and smaller homes that rent to medical staff and young professionals. Williamson Road and the northwest neighborhoods offer lower-priced singles and duplexes.
Salem is its own city, home to Roanoke College, with older brick homes and steady demand. Roanoke County suburbs such as Cave Spring and Hollins carry higher prices and newer homes, and Vinton adds smaller rentals east of the city.
| Area | Typical property | How investors use a bridge |
|---|---|---|
| Old Southwest | Victorian homes split into units | Buy with vacancies, re-lease, refinance |
| Grandin, Raleigh Court, Wasena | Bungalows and small homes | Purchase and update for medical staff renters |
| Salem | Older brick homes and duplexes | Student and family rentals bought quickly |
| Cave Spring, Hollins | Newer suburban homes | Quick purchase before a DSCR refinance |
Old Southwest conversions often come to market with dated units, vacancies or tenants paying far below market. A bridge loan buys at the current price and gives you time to update and re-lease before the DSCR refinance sizes the long-term loan on improved rent.
The Valley also has many estate sales of long-held homes. Executors often want a quick close, and a bridge can close in as little as 10 days.
The program is the same across Virginia, but how it gets used in Roanoke depends on the property. Our Virginia bridge loan page covers statewide closing costs and markets; the table below is the short version.
Plan for the term to be short. Interest-only payments keep carrying costs down while you lease or repair, but the clock is running, so line up contractors, property management and leasing before you close rather than after.
| Term | Bridge program |
|---|---|
| Loan size | $150,000 to $5M+ |
| Pricing | Rates from 7.99% |
| Closing speed | As little as 10 days |
| Valuation | No appraisal on some bridge programs |
| Payments | Interest-only, short term |
| Property | 1-8 unit non-owner-occupied investment property |
| Exit | Sale, or refinance into a DSCR loan |
This example is illustrative and not a quote. An investor buys an Old Southwest Victorian triplex with one vacant unit and two older leases, paying $330,000. A $245,000 bridge loan covers part of the price, so the investor brings $85,000 plus closing costs. Because the loan is interest-only, the estimated monthly interest payment is about $2,042. Over about 6 months, the investor updates the vacant unit and resets the other two leases to market as they renew.
Once leased, with three units at about $1,250 each, rent totals $3,750 a month and the property appraises at $400,000. A DSCR cash-out refinance at 75% LTV is $300,000, which pays off the bridge and returns about $55,000 before closing costs. Estimated principal and interest on a 30-year loan is about $2,047. Adding taxes and insurance of about $550 a month brings the payment to about $2,597, so DSCR is about 1.44x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $330,000 |
| Bridge loan | $245,000 |
| Estimated monthly interest-only payment | $2,042 |
| Value after leasing | $400,000 |
| DSCR cash-out loan at 75% LTV | $300,000 |
| Cash back after bridge payoff, before closing costs | $55,000 |
| Estimated principal and interest | $2,047 |
| Taxes and insurance, monthly | $550 |
| Total monthly payment | $2,597 |
| Monthly rent | $3,750 |
| DSCR | About 1.44x |
Virginia charges a state recordation tax on deeds and on deeds of trust, plus a local share in most places, and a grantor tax usually paid by the seller. Because the bridge and the refinance both record a deed of trust, ask your settlement agent for estimates on each.
In Virginia, independent cities and counties assess property separately. The City of Roanoke, Salem and Roanoke County each have their own assessor, rate and reassessment schedule. Use the locality's current figures for your DSCR math.
Old Southwest and some other Roanoke neighborhoods are historic districts, where exterior changes may need approval from the city's architectural review board. Plan for that time if your bridge period includes exterior work.
Parts of Wasena and other areas near the Roanoke River and its creeks sit in flood zones, and floods have affected the Valley before. Check the FEMA map and get a flood quote where required. Older homes may also need electrical or heating updates that insurers will ask about, and finishing them during the bridge period can help both the value and the premium.
Most Roanoke bridge loans end in a DSCR refinance once units are updated and leased. Selling a renovated bungalow in Grandin or Raleigh Court to a homebuyer is another common exit.
A DSCR refinance looks at rent divided by the full monthly payment, including taxes and insurance, with 1.0x as the standard minimum and 620 as the minimum credit score. Cash-out goes up to 75% LTV. Seasoning rules for cash-out vary by program, which matters if you plan to refinance soon after buying.
Our team works on Roanoke-area bridge loans throughout the City of Roanoke, Roanoke County, Salem, Vinton and Botetourt County. Our investor loans are business-purpose loans on non-owner-occupied property. Share the deal details below or call (877) 298-1001, and we will run the numbers on both the bridge and the exit.
Often, yes. Old Southwest is a historic district, and exterior changes may need architectural review. Check with the city first.
No. Salem is an independent city with its own assessor and tax rate. We lend in both.
Virginia charges recordation tax on deeds and deeds of trust, plus a grantor tax usually paid by the seller. Ask your settlement agent for estimates.
Yes, on 1-8 unit investment property throughout the Roanoke Valley.
Not always. Some of our bridge programs need no appraisal, which can help a deal close in as little as 10 days. Others do, depending on the property and loan size. The DSCR refinance at the end will use an appraisal.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so we do not finance a home you plan to live in.
Bridge pricing and leverage depend on credit and experience. If you plan to refinance into a DSCR loan, that program's minimum credit score is 620.
Yes, on some programs. Buying several rentals in one closing is common, and once they are leased you can refinance them into separate DSCR loans or, with five or more, a blanket portfolio loan.
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