Seattle investors pay a lot for older homes and small apartment buildings, and the good ones still draw competing offers. A bridge loan lets you close fast, renovate or add units, then refinance into long-term financing once the rent is in place.
In short: LendingStreet offers residential bridge loans in Seattle 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 for older single-family homes, duplexes and small multifamily buildings that need work before a DSCR refinance. Washington's graduated real estate excise tax and Seattle's tenant protections are the local items to plan around.
Seattle's older neighborhoods, including Ballard, Greenwood, Beacon Hill, Columbia City and West Seattle, are full of early 1900s Craftsman homes, mid-century houses and small brick and frame apartment buildings. Many need new systems, foundation work or full renovations.
Seattle's zoning has opened up room for backyard cottages and additional units, and Washington has passed middle-housing rules for larger cities. Some investors buy an older home with a bridge loan, add units or renovate, and refinance once the property is leased.
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 Seattle.
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 Seattle, they tend to earn their cost in deals like these.
Seattle buyers often compete with all-cash offers on older homes, and conventional lenders can struggle with a house that needs a new foundation or sewer line. A short-term loan lets you write a clean offer, take the property as it is and fix it on your own schedule.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Older home renovation | Ballard, Greenwood, Beacon Hill | Condition rules out a permanent loan at purchase |
| Small multifamily value-add | Capitol Hill, Fremont, West Seattle | Units need turnover before rents reach market |
| Add an ADU or DADU | Single-family lots citywide | Carry the property while the new unit is permitted and built |
This example is illustrative and not a quote. An investor buys an older fourplex in north Seattle with dated units and two vacancies, then renovates all four apartments. The purchase price is $1,350,000, the rehab budget is $150,000 and the investor expects an after-repair value of $1,700,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $1,230,000 in total. Interest on the full balance is about $9,738 a month, or about $87,638 over a 9-month hold. The investor brings the $270,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $1,700,000 value is $1,275,000, which pays off the $1,230,000 bridge balance with about $45,000 left over before closing costs., principal and interest is about $8,698. With taxes of $1,250 and insurance of $350 a month, the payment is about $10,298. Rent of $11,000 gives a DSCR of about 1.07x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $1,350,000 |
| Rehab budget | $150,000 |
| Bridge loan (80% of price plus rehab) | $1,230,000 |
| Monthly interest | $9,738 |
| Interest over 9 months | $87,638 |
| DSCR refinance at 75% of $1,700,000 | $1,275,000 |
| Monthly payment with taxes and insurance | $10,298 |
| DSCR at $11,000 rent | About 1.07x |
Washington charges a graduated real estate excise tax on sales, with higher rates on higher-priced properties, plus a local portion. It is customarily paid by the seller but affects pricing on both sides.
Title, escrow and recording fees round out the closing costs. King County property taxes are reassessed each year, so budget on current assessed value, not the seller's old bill.
Seattle has some of the strongest tenant protections in the state, including just-cause eviction rules, long notice periods for rent increases and a rental registration and inspection program. If you buy occupied units, factor those rules into your renovation plan and timeline.
Permits through the Seattle Department of Construction and Inspections can take time, especially for added units. Seattle also limits how many short-term rentals one operator can run, so most investors underwrite to long-term leases.
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.
Seattle appraisals rely heavily on recent comparable sales, which can be thin for small multifamily. Strong rent rolls and documented improvements help the refinance.
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 Seattle file are listed here.
Yes, but Seattle's tenant protections limit how quickly you can turn units or raise rents. Build that into your timeline and your exit.
A bridge loan can carry the property while you renovate. For ground-up units, our construction loans may fit better.
It is customarily paid by the seller, but terms are negotiable. Confirm current rates with your escrow company.
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.
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.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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