DC rowhouses are expensive, regulated and often in need of work. A bridge loan lets an investor close quickly, renovate or add a legal unit and then refinance into long-term financing once the property is leased.
In short: LendingStreet offers residential bridge loans in Washington, DC 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 renovate rowhouses, add basement units and reposition small multifamily buildings before refinancing into a DSCR loan. DC's recordation and transfer taxes, TOPA and rent control rules shape most deals.
Petworth, Brightwood, Brookland, Trinidad, Eckington and Congress Heights have brick rowhouses and semi-detached homes from the early 1900s. Many have basements that can become a separate legal unit with the right permits.
East of the Anacostia River, prices are lower and more homes need full renovations. In established areas like Capitol Hill and Shaw, historic district rules affect exterior work.
A bridge loan is short-term, interest-only financing for an investor who needs to close before long-term financing makes sense. LendingStreet's residential bridge loans cover 1 to 8 unit investment property, from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Some bridge programs require no appraisal, which helps when a seller wants a quick, clean close.
The loan is built around the exit. You either sell the property or refinance it into a 30-year DSCR loan once it is renovated and leased. We look at the purchase price, the rehab scope and budget, the expected after-repair value, your track record and how realistic that exit is in Washington, DC.
Your total cost is more than the rate. Budget for interest during the hold, closing costs on the purchase, any lender fees and the closing costs of the refinance or sale at the end. The bridge loan cost calculator can help you add these up before you make an offer.
Most bridge requests in Washington, DC fall into a few patterns. The common thread is speed, a property a long-term lender will not finance yet, or both.
DC's high prices mean even a dated rowhouse can cost more than a finished home in many cities. Investors use bridge financing to close quickly, add value through renovation or a new unit, and then lock in long-term debt.
| Deal | Where you see it | Why a bridge fits |
|---|---|---|
| Rowhouse renovation | Petworth, Brightwood, Trinidad | Condition rules out a permanent loan at purchase |
| Basement unit addition | Rowhouses citywide | Carry the property while the unit is permitted and built |
| Small building value-add | Columbia Heights, Congress Heights | Units need turnover before refinance |
This example is illustrative and not a quote. An investor buys a rowhouse east of the Anacostia River, renovates the main house and finishes a permitted basement unit. The purchase price is $450,000, the rehab budget is $150,000 and the investor expects an after-repair value of $700,000.
Assume a sample bridge loan that funds 80% of the purchase price plus the rehab budget, $510,000 in total. Interest on the full balance is about $4,038 a month, or about $40,375 over a 10-month hold. The investor brings the $90,000 down payment plus closing costs.
At refinance, a DSCR loan at 75% of the $700,000 value is $525,000, which pays off the $510,000 bridge balance with about $15,000 left over before closing costs., principal and interest is about $3,581. With taxes of $500 and insurance of $140 a month, the payment is about $4,221. Rent of $4,300 gives a DSCR of about 1.02x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $450,000 |
| Rehab budget | $150,000 |
| Bridge loan (80% of price plus rehab) | $510,000 |
| Monthly interest | $4,038 |
| Interest over 10 months | $40,375 |
| DSCR refinance at 75% of $700,000 | $525,000 |
| Monthly payment with taxes and insurance | $4,221 |
| DSCR at $4,300 rent | About 1.02x |
DC charges both a deed recordation tax and a transfer tax, and the rates step up on higher-priced properties. The combined cost is significant, and your title company can confirm current rates and how they are split.
DC taxes vacant and blighted properties at much higher rates than occupied homes. Get a vacant property back into use quickly, and register it if required.
The Tenant Opportunity to Purchase Act gives many DC tenants the right to buy before a sale closes, which can add weeks or months. Some single-family homes have exemptions. Confirm TOPA status with your attorney before you set a closing date.
DC rent control generally applies to buildings built before 1976, with exemptions for some small landlords. Permits through the Department of Buildings and a rental business license are required.
Most rental investors exit by refinancing into a DSCR loan, which qualifies on the property's rent, with a 620 minimum credit score, LLC borrowers standard and 30-year terms available. Cash-out goes up to 75% LTV, and the rent has to cover the new payment at the program minimum, 1.0x on standard programs. Cash-out seasoning varies by program, so ask about timing before you close the bridge.
DC prices are high relative to rents, so check the DSCR math at the refinance carefully. Adding a legal basement unit is one way to raise the rent and the ratio.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, the price and the plan through the form below, and the team will come back with options sized to the deal.
If tenants have TOPA rights, the sale cannot close until the process runs its course. That affects your timeline, so confirm status with your attorney first.
Yes. The rehab budget can include a permitted basement unit, which can raise rent for the DSCR refinance.
It generally applies to buildings built before 1976, with exemptions for some small owners. Confirm with an attorney before you buy.
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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