A $1.5 million bridge loan in Fargo rarely buys one house. It buys two 8-unit buildings and a fourplex on the north side, a run of twin homes in West Fargo, or the time to fix up a tired building before a long-term lender will look at it.
In short: LendingStreet's residential investor bridge loans range from $150,000 to $5M+, with Fargo-Moorhead balances of $1M and up reviewed case by case. Rates start from 7.99%, the loans are short-term and interest-only, and a ready file can close in as little as 10 days. Larger balances usually need a full valuation, and the usual exit is a DSCR, blanket or jumbo DSCR refinance, or a sale.
Fargo prices are moderate, so a large bridge balance almost always means several properties or small buildings. The common deals are groups of 5-8 unit buildings and fourplexes in north Fargo and near NDSU, packages of single-family rentals and twin homes in south Fargo and West Fargo, and portfolio purchases from long-time local landlords who are retiring.
Each building must have 8 units or fewer to stay under our residential programs. Fargo has many 12-unit and larger walk-ups, and those go through our commercial or multifamily programs instead.
Mixed packages are common. A seller might offer a 12-unit building together with several fourplexes and houses. In that case the 1-8 unit properties can be financed under a residential bridge loan, and the larger building handled separately, so ask early how the package will be split.
Long-term DSCR lenders want stable rents and a building in reasonable condition. Many older Fargo buildings come to market with below-market rents, deferred maintenance or high vacancy, especially when a long-time owner has not raised rents in years. A bridge loan finances the purchase while you renovate units, re-lease them and build a rent roll that supports a long-term loan.
Speed is the other reason. Portfolio sellers often take the buyer who can close quickly and cleanly, and a bridge loan can close in as little as 10 days when the file is ready.
The figures below are program-level. Leverage and pricing for a specific deal depend on the properties, valuation, experience and exit.
| Feature | Large bridge program |
|---|---|
| Loan size | $150,000 to $5M+; $1M+ reviewed case by case |
| Rates | From 7.99% |
| Structure | Short-term, interest-only |
| Speed | Close in as little as 10 days |
| Valuation | Full valuation usually required on larger balances |
| Exits | Sale, DSCR, blanket or jumbo DSCR refinance |
This example is illustrative and not a quote. An investor buys two 1970s 8-unit buildings and a fourplex in north Fargo, 20 units in all, for $1,900,000. Rents are well below market and several units need new kitchens and flooring. The bridge loan is $1,425,000, 75% of the price. Estimated interest-only payments are about $12,469 a month, or about $112,221 over a 9-month renovation and lease-up. The investor funds the renovation in cash.
After the work, the units lease at about $975 each, or $19,500 a month. A new valuation comes in at $2,250,000. The investor refinances into a blanket DSCR loan at 70% of value, $1,575,000. Estimated principal and interest is about $10,744, taxes are $2,700 and insurance is $1,300, for a total of about $14,744. The portfolio DSCR is about 1.32x, and the refinance pays off the bridge. On 5-8 unit buildings, max LTV can be lower and varies by program.
| Stage | Amount |
|---|---|
| Purchase price, 20 units | $1,900,000 |
| Bridge loan (75%) | $1,425,000 |
| Estimated interest-only payment | $12,469 a month |
| Rent after renovation | $19,500 a month |
| Blanket DSCR refinance (70% of new value) | $1,575,000 |
| Total payment after refinance | $14,744 |
| Portfolio DSCR | 1.32x |
A $1M+ bridge loan usually needs a full valuation on each property. In Fargo, also think about the calendar. Exterior work, roofs and parking lots are hard to do from December through March, so a purchase in late fall can mean a longer hold before the property is ready for a refinance. Build that into your carrying cost estimate.
Appraisers will want the current rent roll and your renovation budget. A clear scope of work helps the valuation and the exit.
Experience matters on balances this size. Show the properties you have owned, renovated and leased in the Fargo-Moorhead area or elsewhere, and name the property manager and contractors you plan to use. A seasoned operator with a realistic budget usually gets more leverage and a faster answer than a first large purchase.
Fargo's special assessments apply to large buildings too. Before you buy, get the remaining special balance and annual installment on every parcel. North Dakota has no real estate transfer tax, which helps closing costs on a large deal, but property taxes and specials still go into the refinance ratio. If any part of the package is in Moorhead, Minnesota's deed and mortgage registry taxes apply to that property.
Packages of five or more properties usually exit into a blanket portfolio loan with one payment. Individual buildings can each take a DSCR loan, and a single high-balance property can move to a jumbo DSCR loan. Some investors sell one building after renovation to pay down the bridge and keep the rest. Map the exit before you sign, using conservative rents and realistic taxes.
Leave a cushion. If renovation runs long or rents come in a little lower than planned, the refinance amount drops and you may need to bring cash to pay off the bridge. Running the exit at slightly lower rents and a slightly lower value shows whether the deal still works.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property list, price, current and target rents, renovation budget and planned exit through the form below or call (877) 298-1001. Statewide details are on our North Dakota large bridge loans page, and long-term options above $1.5M are on Fargo jumbo DSCR loans.
Yes. Balances of $1M and up are reviewed case by case. In Fargo they usually cover several small buildings or a package of homes.
Rates start from 7.99%. Pricing depends on leverage, property condition, your experience and the exit.
No. Residential programs cover 1 to 8 units per building. A 12-unit building goes through our commercial or multifamily programs.
Larger balances usually need a full valuation on each property.
This page covers purchase and refinance bridge loans. If you need rehab funds, ask about our fix and flip program, which can fund up to 100% of rehab on some programs.
Most investors refinance into a blanket or individual DSCR loans once the units are leased. Others sell part of the package.
No. Our investor loans are business-purpose loans on non-owner-occupied property, used for rentals and investment purchases.
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