Delaware is small, but its large bridge requests are varied: $2M beach homes in Rehoboth, Lewes and Bethany, student rental packages in Newark, and older multi-unit properties in Wilmington.
In short: LendingStreet makes Delaware bridge loans from $1M to $5M+ on 1-8 unit investment properties, with rates from 7.99% and closings in as little as 10 days. Larger balances are reviewed case by case and usually need a full valuation. Delaware investors use them mostly for beach-area vacation rentals and rental packages, then refinance into DSCR or jumbo DSCR loans.
In Sussex County, homes in Rehoboth Beach, Lewes, Dewey Beach, Bethany Beach and Fenwick Island often sell above $1M and are bought for summer rental income. Newer communities inland, around Millsboro and Milton, add lower-priced rentals that investors buy in groups.
In New Castle County, Wilmington neighborhoods such as Trolley Square and the Highlands have rowhouses and converted multi-unit homes, while Brandywine Hundred and Pike Creek have suburban rentals. Newark has strong student demand around the University of Delaware. Dover, in Kent County, has rental demand tied to state government and Dover Air Force Base.
Prices in Kent and lower New Castle County, around Middletown, Smyrna and Dover, are much lower than at the beaches, so a $1M+ bridge there usually covers several homes. On the coast, a single home can be enough.
| Area | What a large bridge usually funds | First thing to check |
|---|---|---|
| Rehoboth, Lewes, Bethany, Fenwick | Beach home bought for summer rentals | Rental license, flood zone, HOA |
| Wilmington | Rowhouse groups, small multi-unit | City rental permit and condition |
| Newark | Student rental packages | City rental permits and occupancy limits |
| Dover, Kent County | Packages of long-term rentals | Rent roll and tenant history |
Delaware deals above $1M usually involve:
Bridge financing here is short-term and interest-only, from $150,000 up to $5M+ with rates from 7.99%. A $1M+ request gets case-by-case review: we want to see the property, a realistic exit and enough cash left after closing to carry the loan.
Larger balances usually need a full valuation rather than a desktop estimate. Getting it scheduled early is what keeps a close in as little as 10 days on the table.
Delaware has one of the higher realty transfer taxes in the region, combining a state share and a local share that together can reach about 4% in many towns, usually split between buyer and seller by custom. On a $2M beach purchase that is a large line item, so price it with your title company early.
Delaware property taxes are low, but for decades they were based on very old assessments. The counties recently completed court-ordered reassessments, so bills on many properties have changed. Use the current bill, not the one from a few years ago.
Because the transfer tax is charged again whenever a deed is recorded, investors who plan to buy, hold briefly and sell should include it on both ends when they model a beach deal.
This example is illustrative and not a quote. An investor buys a five-bedroom home a few blocks from the beach in Bethany Beach for $1,700,000 in January, planning to furnish it and rent it by the week in summer.
After a full summer season, the investor refinances using average monthly rental income from the booking history. The refinance at 65% LTV comes to $1,138,000, so the investor brings about $137,000 to retire the $1,275,000 bridge balance.
Low property taxes help, while flood and wind coverage cost much more than taxes. Rental income here is seasonal, so it is averaged across the year.
| Line item | Amount |
|---|---|
| Bridge loan | $1,275,000 |
| Estimated monthly interest-only payment | $11,156 |
| Hold period | 9 months |
| Value at refinance | $1,750,000 |
| DSCR loan at 65% LTV | $1,138,000 |
| Estimated principal and interest | $7,860 |
| Taxes | $330 |
| Insurance | $900 |
| Total monthly payment | $9,090 |
| Monthly rent | $10,200 |
| DSCR | 1.12x |
Beach towns such as Rehoboth require rental licenses and collect their own rental or lodging taxes in addition to state lodging tax. HOA covenants in newer communities can limit rentals. Coastal and bayside properties often sit in flood zones, so flood insurance can be a major part of the payment.
Newark regulates student rentals with permits and limits on unrelated occupants in some areas. Confirm the allowed occupancy before you buy a house based on per-bedroom rent.
Much of the new construction in Sussex County is in planned communities around Lewes, Milton, Millsboro and Ocean View. Many have HOAs, and some, including age-restricted communities, limit or prohibit rentals. Read the covenants before you buy a home there as a rental.
Some properties outside the towns use private septic systems and wells. A septic inspection is worth ordering, especially for a large home rented to big groups in summer.
Because property taxes are low in Sussex County, insurance and HOA dues often decide the DSCR ratio. A home farther from the water may have much lower flood and wind premiums and can produce a better ratio even at lower rent.
Every bridge needs a way out. Most large files end in a sale or a refinance into a 30-year DSCR loan that qualifies on rent, with no W-2s or tax returns and LLC borrowers standard. Balances of about $1.5M and up move into jumbo DSCR, where max LTV can be lower and varies by program.
Run the DSCR math before you close the bridge. The standard minimum is 1.0x, meaning rent covers principal, interest, taxes, insurance and any HOA dues.
Send the following and we can usually issue terms quickly and order the valuation right away:
Combined state and local transfer tax can reach about 4% in many towns, usually split by custom. Confirm the exact figure with your title company.
It may have. The counties recently reassessed, so use the current bill when estimating your DSCR refinance.
On some programs the refinance can use short-term rental income, provided town licenses and HOA rules allow it.
Yes, as 1-8 unit properties on one bridge, then a blanket or individual DSCR refinance.
In most cases. A seven-figure balance usually needs an appraisal or similar report, so we order it as soon as terms are accepted.
Yes. Closings can happen in as little as 10 days if the file is complete and the valuation is ordered right away.
The program runs to $5M+ on 1-8 unit investment property, with larger requests reviewed case by case.
Usually a 30-year DSCR loan that qualifies on rent, or jumbo DSCR for larger balances, with max LTV that varies by program.
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