San Francisco sellers of estate and long-held buildings often want a quick, clean close. A bridge loan lets you win that deal now and arrange long-term financing once the building is leased.
In short: LendingStreet offers residential investor bridge loans in San Francisco from $150,000 to $5M+ on 1 to 8 unit properties, with rates from 7.99% and closings in as little as 10 days. Loans are short-term and interest-only, some bridge programs require no appraisal, and the usual exits are a sale or a refinance into a DSCR loan once the property is stabilized.
The common case is a two- to four-unit building that is partly vacant at sale. A long-term DSCR loan qualifies on rent, and a building with empty units does not have it yet. A bridge loan carries the property while you lease the vacant units at market rent, which state law allows on turnover.
Other uses include probate and trust sales in the Sunset and Richmond that need a fast close, buying a replacement property before selling another, and tight 1031 exchange deadlines. Sellers in these situations often weigh certainty and timing as heavily as price, so a buyer who can close quickly may negotiate better terms.
Bridge financing also helps when a building has a short-term issue that keeps it out of long-term financing for now, such as a unit between tenants or a minor repair list that needs to be cleared before an appraisal would support full value.
This example is illustrative and not a quote. An investor buys a three-unit Inner Richmond building for $2,100,000. One unit has a long-term tenant; two are vacant after the seller's family moved out. The bridge loan is $1,470,000, 70% of price, with interest-only payments of about $11,638 a month.
After light updates, the two vacant units lease at market and the building collects $12,100 a month. A DSCR refinance at the same balance would run about 0.96x, below the 1.0x standard minimum, so the investor pays the balance down to $1,250,000 and the ratio reaches about 1.09x. Planning that paydown at purchase is what makes the exit work.
| Stage | Loan | Monthly payment | Notes |
|---|---|---|---|
| Bridge, while two units are vacant | $1,470,000 | $11,638 interest-only | 70% of price; about $93,100 over 8 months |
| DSCR refinance at same balance | $1,470,000 | $12,580 with taxes and insurance | DSCR 0.96x on $12,100 rent |
| DSCR refinance after paydown | $1,250,000 | $11,116 with taxes and insurance | DSCR 1.09x |
In San Francisco, rents are high but low relative to price, so a bridge balance at 70% to 80% of value may not convert into a long-term loan at the same size. Before you buy, run the stabilized rent against a DSCR payment and decide whether the exit is a refinance, a paydown plus refinance, or a sale.
Our bridge-to-DSCR guide walks through the timing and documentation. In short, the refinance appraisal will look at signed leases and market rent, the payment will include taxes at your reassessed value, and the loan has to clear the program's ratio. If the numbers fall a little short, a sub-1.0 DSCR program or a modest paydown usually closes the gap.
Building the exit into the purchase price is the discipline that separates a profitable bridge from an expensive one. Every month of interest-only carry comes out of your return.
Pre-1979 multi-unit buildings fall under the Rent Ordinance. A unit vacated voluntarily can be re-rented at market, but the tenant you sign becomes a regulated tenant going forward. Price each lease carefully, since that rent sets your long-term qualifying income.
If a unit is occupied by a tenant who is leaving under a buyout or relocation agreement, confirm the status and the required filings with the Rent Board before you count it as vacant.
The city's tiered transfer tax and the county's documentary transfer tax are due at closing, and under Prop 13 a supplemental tax bill follows. Wood-frame buildings often need earthquake coverage priced separately. Line up insurance before the closing date so speed does not create a gap.
Some bridge programs require no appraisal, which can shorten the timeline. Value is still reviewed, and leverage reflects it.
Bridge loans are short-term, interest-only financing. Here is the residential investor program in summary.
If the plan includes a real renovation, with permits and a rehab budget, a fix and flip loan that funds rehab in draws is usually the better tool. A bridge loan suits buildings that need time and leasing more than construction.
The line can blur on older San Francisco flats. Paint, floors and appliances between tenants fit a bridge loan well. Moving walls, adding a bath or digging out a ground floor triggers permits and inspections, and a draw-based renovation loan matches that work better. Tell us the scope and we will suggest the right structure.
Speed depends on a complete file. Because bridge loans lean on the property and the exit, we focus on value, occupancy, the condition of the building and your track record with similar properties. Experience with San Francisco rentals or other high-cost markets helps, but it is not the only path.
Expect questions about each unit's status, any open permits on the city's records and the building's insurance history. Clean answers early keep the closing date intact.
Send the address, price, current occupancy, target close date and planned exit through the form below or call (877) 298-1001. We will size the bridge and test the exit DSCR up front. See our California bridge page for statewide terms.
Our residential investor bridge rates start from 7.99%. Your pricing depends on leverage, experience and the property.
Some bridge programs require no appraisal, which can speed closing. Value is still reviewed by other means.
Yes. That is one of the main uses. The bridge carries the building while you lease units, then you refinance.
Short-term and interest-only. Choose a term that allows for lease-up and any Rent Board filings.
Not always at the same size. In San Francisco, many investors plan a partial paydown to reach a 1.0x ratio.
Yes, bridge financing is often used to meet replacement deadlines on investment property.
Yes. Bridge loans cover 1 to 8 unit residential properties. Nine or more units is commercial lending.
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