San Diego property is expensive, and rents often do not cover a full-leverage payment on day one. A bridge loan buys time to renovate, add units or raise the property to market rent before the long-term loan is sized.
In short: LendingStreet offers residential bridge loans in San Diego 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 older homes and small plexes that need work, then refinance into a DSCR loan. Because prices are high relative to rents, many San Diego exits use lower leverage, so run the refinance math before you buy.
Neighborhoods such as North Park, City Heights, Normal Heights, Clairemont and Encanto have older single-family homes, cottages and small apartment buildings, many built before 1970. Coastal areas like Pacific Beach and Ocean Beach carry higher prices and more rental regulation.
San Diego has been encouraging accessory dwelling units, and many investors buy an older house on a large lot to add one or more ADUs. A bridge loan can carry the property while the work is underway.
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 San Diego.
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 San Diego, they tend to earn their cost in deals like these.
San Diego investors often use bridge financing because the property cannot support a permanent loan yet. Rents on dated units are below market, or an ADU is not built. The bridge carries the property until the rent is high enough to support a long-term payment.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Older home renovation | Clairemont, Encanto, Normal Heights | Condition rules out a permanent loan at purchase |
| Small plex value-add | North Park, City Heights | Units need turnover before rents reach market |
| ADU addition | Large lots citywide | Carry the property while new units are permitted and built |
This example is illustrative and not a quote. An investor buys an older triplex in a mid-city neighborhood, renovates all three units and refinances at a lower 65% LTV so the rent covers the payment. The purchase price is $1,150,000, the rehab budget is $120,000 and the investor expects an after-repair value of $1,400,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $1,040,000 in total. Interest on the full balance is about $8,233 a month, or about $74,100 over a 9-month hold. The investor brings the $230,000 down payment plus closing costs.
At refinance, a DSCR loan at 65% of the $1,400,000 value is $910,000, which leaves about $130,000 of the $1,040,000 bridge balance for the investor to cover at closing., principal and interest is about $6,208. With taxes of $1,400 and insurance of $250 a month, the payment is about $7,858. Rent of $8,400 gives a DSCR of about 1.07x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $1,150,000 |
| Rehab budget | $120,000 |
| Bridge loan (80% of price plus rehab) | $1,040,000 |
| Monthly interest | $8,233 |
| Interest over 9 months | $74,100 |
| DSCR refinance at 65% of $1,400,000 | $910,000 |
| Monthly payment with taxes and insurance | $7,858 |
| DSCR at $8,400 rent | About 1.07x |
San Diego County charges a documentary transfer tax on sales, and title, escrow and recording fees apply on both the purchase and the refinance.
Property is reassessed at the purchase price under Prop 13, so your tax bill will usually be well above the seller's. Budget on the base rate plus local assessments applied to your price.
San Diego requires licenses for short-term rentals and caps how many whole-home licenses are issued, with a separate limit in Mission Beach. Do not count on nightly income unless the property already has a license you can use.
California's rent cap limits increases on many rentals older than 15 years. Projects in the coastal zone may also need coastal development permits, which can add time.
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.
On San Diego rentals, a full 75% cash-out often does not clear 1.0x. Many investors refinance at lower leverage or use a sub-1.0 DSCR program where it fits.
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 San Diego file are listed here.
Only if the property holds a valid license. The city limits whole-home short-term rental licenses, so most bridge-to-DSCR plans use long-term rents.
In San Diego, rents are often low relative to prices. A smaller loan lowers the payment so the rent can cover it at the program minimum.
A bridge loan can carry the property while you renovate. For ground-up ADUs, ask about our construction loans.
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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