In San Jose, the best rental listings can draw several offers within days. Investors who must sell one property to buy the next often lose those deals. A bridge loan lets you buy first, then sell on your own schedule.
In short: LendingStreet offers residential investor bridge loans in San Jose and Santa Clara County 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 exit is a sale, a paydown from another sale, or a refinance into a long-term DSCR loan.
Competition for well-located duplexes, fourplexes and single-family rentals in Willow Glen, Rose Garden, Japantown and near the Berryessa BART station can be intense. Offers contingent on selling another property, or on long financing timelines, often lose to faster buyers. A bridge loan closes quickly on the property's value, letting you compete on terms.
Other common uses include vacant buildings that need lease-up before long-term financing, estate and trust sales on fixed timelines, and investors moving equity from an older, low-yield rental into a better property. Many long-time Santa Clara County landlords hold condos or townhomes bought years ago that now produce thin returns on their equity. Trading into a duplex or small multi-unit building can raise income, and a bridge loan makes the timing work.
This example is illustrative and not a quote. An investor wants a vacant Willow Glen duplex listed at $1,850,000 and plans to sell a rental condo elsewhere in the county to fund part of the purchase. A bridge loan of $1,295,000, 70% of price, closes the purchase, with interest-only payments of about $10,252 a month.
Over the next 4 months, the investor leases both units for $8,200 in total and sells the condo. Refinancing the full bridge balance into a DSCR loan would produce a ratio near 0.76x, which does not qualify. Using the condo sale proceeds to pay the balance down to $900,000 brings the ratio to about 1.01x. The bridge carried the timing gap, and the sale funded the paydown.
| Stage | Loan balance | Monthly payment | DSCR at $8,200 rent |
|---|---|---|---|
| Bridge after purchase | $1,295,000 | $10,252 interest-only, plus taxes and insurance | Not tested; units being leased |
| DSCR loan with no paydown | $1,295,000 | $10,766 total | 0.76x |
| DSCR loan after paydown from the sale | $900,000 | $8,138 total | 1.01x |
Silicon Valley rents are high, but low relative to prices, so a bridge balance at 70% to 80% of value rarely converts into a long-term DSCR loan at the same size. Successful San Jose bridge borrowers usually know where the paydown comes from: the sale of another property, a planned capital source of their own, or a sale of the new property itself.
Before you buy, run the stabilized rents against a DSCR payment, with taxes on your purchase price and insurance, and decide how much paydown the refinance will need. Our bridge-to-DSCR guide explains the steps.
Write down the exit before you sign: the expected sale price of the property you are selling, its timeline, the paydown it funds and the DSCR loan it leaves. If any piece slips, you will know how much room the bridge term gives you.
San Jose's Measure E transfer tax applies to sales at or above about $2M, with higher tiers above that. On a purchase near the threshold, it can be a meaningful closing cost, and it applies again when you sell a property in the city above it. Santa Clara County's documentary transfer tax applies to all sales. Check current tiers with the city before you set your price.
Under Prop 13, your purchase resets the assessed value, and a supplemental tax bill follows closing.
If the building has three or more units and was built before late 1979, San Jose's Apartment Rent Ordinance limits annual increases on those units once they are leased, and the Tenant Protection Ordinance requires just cause for most terminations. A vacant unit can be leased at market, but that rent becomes the base going forward. Duplexes and single-family homes are generally outside the ordinance's increase limit, though statewide rules may apply.
Here is the residential investor bridge program at a glance. Some bridge programs require no appraisal, which can save days on a competitive purchase; value is still reviewed.
If the property needs a real renovation, such as an Eichler roof and heating overhaul or a garage conversion into an ADU, a fix and flip loan that funds rehab in draws is usually the better fit. If you are building new, a construction loan is the right tool. A bridge loan works best when the main need is time.
If you already own several San Jose rentals with equity, a cash-out refinance on one of them might fund the next purchase instead of a bridge loan. We can compare both.
Send the purchase contract, closing date, current occupancy, the property you plan to sell and its estimated net proceeds, and your target DSCR refinance. With a complete file, closings can happen in as little as 10 days.
If the property you plan to sell is listed or under contract, include the listing or the contract. A realistic sale timeline helps us set the bridge term so you are not paying for months you do not need, or racing a maturity date you cannot meet. If the sale takes longer than expected, an early conversation about options is always better than a late one.
Use the form below or call (877) 298-1001. We will size the bridge, test the refinance and show how much paydown it needs. See our California bridge page for statewide terms.
Our residential investor bridge rates start from 7.99%. Pricing depends on leverage, experience and the property.
Yes. That is one of the main uses of a bridge loan. The sale proceeds can later pay down the balance.
Some bridge programs require no appraisal. Value is still reviewed.
Often only after a paydown in San Jose, because rents are low relative to price. We test this before you close.
Short-term and interest-only. Pick a term that covers your sale and lease-up.
If the price is at or above about $2M and the property is in San Jose, the city transfer tax generally applies. Confirm current tiers with the city.
Yes. Bridge loans cover 1-8 unit residential properties. Nine or more units is commercial.
Talk to us early. Choosing a term with room for a slower sale, and keeping reserves for interest-only payments, protects you if the market slows.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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