A seven-figure bridge loan in the Lehigh Valley usually means a package: fifteen or twenty rowhomes from a landlord who is retiring, a set of converted apartment buildings in Center City, or several properties across Allentown, Bethlehem and Easton being bought and renovated at once.
In short: LendingStreet provides residential investor bridge loans across the Lehigh Valley from $1M to $5M+, within a program range of $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Loans are short-term and interest-only, and larger balances usually need a full valuation. Most Allentown borrowers exit by refinancing into a blanket, DSCR or jumbo DSCR loan, or by selling some or all of the properties.
Allentown rowhomes are relatively inexpensive, so large bridge loans here are mostly about volume. Common packages include long-held rowhome portfolios in Center City and the East Side, converted apartment buildings in Old Allentown, groups of Bethlehem South Side rentals near Lehigh, and mixed portfolios spread across the three cities.
Higher-value single homes in Saucon Valley, Upper Saucon, Lower Macungie and around the country clubs can support larger balances on their own, but they are a smaller share of investor activity. Those files need a clear plan for leasing or resale.
The Valley's growth helps the case for larger deals. Warehouse and distribution employment along the Route 22 and I-78 corridors, two large health systems and a steady flow of renters from New York and New Jersey have kept demand for renovated rentals strong. That demand is what supports the rents in a refinance, so show recent leases on comparable renovated homes.
Bridge loans cover the gap between buying or refinancing now and qualifying for long-term debt later. Typical Lehigh Valley uses include:
This example is illustrative and not a quote. An investor buys 18 rowhomes for $2,520,000, about $140,000 each, and budgets $450,000 for renovations. Leverage varies by program; this example assumes a bridge at 75% of total cost, or $2,227,500, with an estimated interest-only payment of about $18,562 a month.
After renovation, the homes are valued at about $200,000 each, $3,600,000 combined, and rent for $1,600, or $28,800 a month in total. A blanket refinance at 65% of value produces $2,340,000, enough to retire the bridge. Estimated principal and interest is about $16,362, taxes about $5,940 and insurance $2,300, for a total payment of about $24,602 and portfolio DSCR of about 1.17x. Allentown's higher tax bills are why the exit here uses 65% rather than the maximum.
| Stage | Amount |
|---|---|
| Purchase, 18 rowhomes | $2,520,000 |
| Renovation budget | $450,000 |
| Bridge at 75% of cost | $2,227,500 |
| Estimated monthly interest-only payment | $18,562 |
| Value after renovation | $3,600,000 |
| Refinance at 65% of value | $2,340,000 |
| Monthly rent, 18 homes | $28,800 |
| Refinance payment with taxes and insurance | $24,602 |
| Portfolio DSCR | 1.17x |
Larger balances usually need a full valuation, often one for each property in a package. Values on Allentown rowhome blocks can change from one street to the next, so give the appraiser a schedule with condition notes, current rents, renovation scope and the legal unit count for each building.
Converted buildings are valued as their legal use. Confirm unit counts and rental license status before you sign, because an unlicensed third apartment will not be valued as one.
Pennsylvania realty transfer tax is 1% to the state plus local transfer tax, and some Lehigh Valley municipalities charge more than the common 1% local share. On a multi-million-dollar package, that is a major closing cost, whether the buyer and seller split it or one side pays more. Build it into the deal, and talk with your attorney before restructuring title, since transfers into an LLC can also be taxable.
Renovation funds on larger loans are usually released in stages after inspections. In Allentown, Bethlehem and Easton, plan for the city's rental licensing inspections before units can be leased, along with permits for electrical, plumbing and any structural work.
Contractor capacity limits how fast an 18-home package can turn. Keep occupied units producing rent, renovate vacant ones first and leave time before maturity to lease up and season for the refinance.
Large packages in older housing stock reward operators who know the local inspection process and contractor base.
Lenders look closely at your track record on large packages. Show the Lehigh Valley rentals you own, the renovations you have completed, your management setup and how your current properties perform. A newer investor taking on 18 homes may need a smaller first package or an experienced partner or manager.
Choosing the exit early shapes everything else, from which rowhomes get renovated first to how long the bridge term needs to be.
Five or more properties fit a blanket portfolio loan with release provisions, which suits rowhomes priced below the $150,000 single-loan minimum. Individual buildings can refinance into separate DSCR loans, and a high-value home or large portfolio may fit a jumbo DSCR loan. Many investors sell a few properties after renovation to reduce the balance. Our bridge-to-DSCR guide explains timing.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property schedule, contract or payoff letter, budget and exit plan through the form below, or call (877) 298-1001. See also our Pennsylvania large bridge page.
Yes. Most cover packages of rowhomes, twins or converted buildings rather than one property. The program range is $150,000 to $5M+.
Rates start from 7.99%. Pricing on larger balances depends on leverage, the properties, your experience and the exit plan.
In as little as 10 days, though full valuations on many properties can take longer. Build time into the contract.
Larger balances usually need a full valuation, often for each property in the package. A clear schedule of addresses, rents, condition and legal unit counts helps the valuation move faster.
The state charges 1% plus local transfer tax, which varies by municipality. Ask your title company for the exact figure.
Yes. Send the payoff letter, rent roll and plan so we can review the numbers. Many Lehigh Valley landlords with seller notes or short-term loans coming due use a bridge to buy time for renovations and a long-term refinance.
Yes. Bridge loans are short-term and interest-only, with the balance repaid at sale or refinance. The lower monthly carry helps while vacant rowhomes are renovated, inspected and leased.
Yes. Packages of five or more properties often refinance into a blanket portfolio loan qualified on combined cash flow.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.