In Charlottesville, a large bridge loan often comes down to the calendar. A student building near Grounds that closes in June can be renovated and leased by August; one that closes in September may sit half empty for a year.
In short: LendingStreet offers residential investor bridge loans from $1M to $5M+ in Charlottesville and Albemarle County, on 1-8 unit properties, with rates from 7.99% and closings in as little as 10 days. Common uses include small student buildings near UVA, estate and farm-area homes, packages of rentals and payoff of maturing loans. Loans are short-term and interest-only, larger balances usually need a full valuation, and the exit is a sale or a refinance into a DSCR, 5-8 unit DSCR or jumbo DSCR loan.
The Charlottesville area has real high-value property as well as dense student housing, so large bridge requests take several forms.
Student leases near UVA usually run August to August and are often signed far ahead. A building that changes hands in spring or early summer gives the new owner time to renovate and turn units before move-in. A bridge loan that can close in as little as 10 days helps you hit that window and start contractors right away. Larger balances usually need a full valuation, so order it as soon as you are under contract.
Missing the window is costly. Students and parents sign leases early, and a building that is not ready for tours in the fall leasing season or not finished by move-in can lose a year of rent on several units. That risk is why sellers of student buildings often prefer buyers who can close quickly and why investors pay for speed with bridge financing rather than waiting on permanent loans.
This example is illustrative and not a quote. An investor buys a six-unit building near the Corner for $2,200,000 in May. The bridge loan is $1,650,000, 75% of price, and estimated interest-only payments are about $14,094 a month during a summer renovation of kitchens, baths and fire safety systems.
With all six three-bedroom units leased for the academic year at $2,400 each, $14,400 a month, the building appraises at $2,450,000. A 5-8 unit DSCR refinance at 70% of value, if the program allows that leverage, is $1,715,000, which pays off the bridge. Estimated principal and interest is about $11,699, taxes about $1,960 and insurance about $450, for a total of $14,109 and a DSCR of about 1.02x.
| Step | Amount |
|---|---|
| Purchase price, six units | $2,200,000 |
| Bridge loan (75%) | $1,650,000 |
| Estimated monthly interest-only payment | $14,094 |
| Value after renovation and lease-up | $2,450,000 |
| 5-8 unit DSCR refinance (70%) | $1,715,000 |
| Monthly rent | $14,400 |
| Payment after refinance | $14,109 |
| DSCR | About 1.02x |
Albemarle's estate homes in Farmington, Ivy and Keswick can be worth several million dollars, and they attract executive and visiting-faculty tenants. Long-term rent on these homes is usually thin relative to value, so a refinance exit typically means a jumbo DSCR loan at moderate leverage, or a sale after renovation. Short-term rental income is limited by county homestay rules, so do not build the exit around nightly income without confirming the parcel qualifies.
Estate properties may also include acreage, outbuildings, wells and septic systems. Appraisers may need to look farther afield for comparable sales, and property-type and acreage limits vary by program.
Virginia assesses at full market value, and Charlottesville reassesses annually. Buyers typically pay recordation tax on the deed and on the deed of trust, which on a $2M purchase with a large bridge loan adds up. Sellers pay grantor tax. On a bridge followed by a refinance, recordation tax applies to the new deed of trust at each step, so include both in your budget.
Charlottesville's late-2023 zoning ordinance allows more units on many lots but has faced legal challenges, so confirm current status before planning to add units. Older student buildings may need fire separation, egress and sprinkler or alarm upgrades. Some areas near Grounds fall in architectural design control districts with review of exterior changes. Build permit time into the bridge term.
Small student buildings usually exit into a 5-8 unit DSCR loan or individual DSCR loans for 2-4 unit buildings, once leased for the year. Packages of houses can exit into a blanket DSCR loan. Estate homes exit into a jumbo DSCR loan or a sale. Plan the exit on current taxes, insurance and signed leases.
Note that five to eight unit properties often have lower maximum leverage than one to four unit properties, depending on the program, so test the refinance at more than one LTV. If the numbers only work at the top of the range, consider a larger down payment on the bridge or a longer lease-up period.
Experience matters on large balances. Expect questions about the student or rental properties you own or manage, your contractor's track record with older buildings and who will handle leasing.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property details, purchase or payoff figure, renovation budget, leasing timeline and planned exit. We will size the bridge and the refinance together. Call (877) 298-1001 or use the form below. The Virginia large bridge page covers other markets in the state.
Yes. Residential investor bridge loans run from $150,000 to $5M+, with larger balances reviewed case by case.
Rates start from 7.99%. Pricing depends on leverage, the property, your experience and the exit.
Yes, if it has up to eight units. For 9 or more, see our multifamily loan page.
Bridge loans can close in as little as 10 days, but larger balances need a full valuation, so start early.
Yes, for an investment property. Plan the exit as a jumbo DSCR refinance at moderate leverage or a sale.
Buyers usually pay recordation tax on the deed and deed of trust; sellers pay grantor tax.
A 5-8 unit or individual DSCR refinance once leased, a blanket loan for packages, a jumbo DSCR loan or a sale.
Larger balances usually need a full valuation.
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