Northwest Arkansas has enough new construction and enough high-end housing that a $2 million investor deal can take several shapes: a builder's last six duplexes in a Springdale subdivision, a package of rentals from a retiring landlord, or a single executive home near Bentonville bought on a tight deadline.
In short: LendingStreet's residential investor bridge loans run from $150,000 to $5M+, and NWA balances of $1M and up are reviewed case by case. Rates start from 7.99%, the loans are short-term and interest-only, and a complete file can close in as little as 10 days. Larger balances usually need a full valuation, and the exit is a sale or a refinance into a DSCR, blanket or jumbo DSCR loan.
The most common $1M+ deals in the region are packages: several new-build duplexes or fourplexes bought from a builder, a group of older rentals in Springdale and Fayetteville bought from one owner, or a mix of homes across Rogers, Lowell and Centerton. Single high-value homes also come up, such as executive homes in Bentonville and Pinnacle Hills, wooded estates in Bella Vista or lake homes near Beaver Lake.
All properties must be residential, 1 to 8 units each. Larger apartment complexes go through our commercial or multifamily programs.
New construction often needs time to lease up. A builder may sell a group of brand-new duplexes with some or all units vacant, and a long-term DSCR loan sized on rent is hard to get until leases are signed. A bridge loan finances the purchase now, gives you a few months to lease the units, and then a blanket or individual DSCR refinance pays it off.
Other times, the reason is timing. Portfolio sellers and builders closing out a subdivision usually favor the buyer who can close fast. Investors also use bridge money to pay off a maturing loan or to close inside a 1031 exchange window.
These are program-level terms. Leverage and pricing for a given deal depend on the properties, the valuation, your experience and the exit plan.
| 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 | As little as 10 days with a complete file |
| Valuation | Larger balances usually need a full valuation |
| Exits | Sale, DSCR, blanket or jumbo DSCR refinance |
This example is illustrative and not a quote. An investor buys six new duplexes in a Springdale-area subdivision from the builder for $2,520,000, with most units not yet leased. The bridge loan is $1,890,000, 75% of the price. Estimated interest-only payments are about $16,538 a month, or about $99,228 over a 6-month lease-up.
Once all 12 units lease at about $1,300, rent is $15,600 a month and the portfolio values at $2,600,000. Taxes on finished value are about $2,167 a month and insurance is $1,000. A blanket DSCR refinance at 70% of value, $1,820,000, has estimated principal and interest of about $12,416, a total of about $15,583 and a DSCR of about 1.00x, right at the line. At 65%, $1,690,000, the total is about $14,696 and DSCR is about 1.06x. The investor plans the 65% exit and brings the difference to closing.
| Item | Exit at 70% | Exit at 65% |
|---|---|---|
| Refinance amount | $1,820,000 | $1,690,000 |
| Estimated principal and interest | $12,416 | $11,529 |
| Taxes and insurance | $3,167 | $3,167 |
| Total monthly payment | $15,583 | $14,696 |
| Combined rent | $15,600 | $15,600 |
| Portfolio DSCR | 1.00x | 1.06x |
Executive homes in Bentonville and Rogers and lake homes near Beaver Lake can be good assets, but at long-term rents many of them do not cover a full DSCR payment at normal leverage. If you buy one with a bridge loan, the realistic exits are a sale, a jumbo DSCR refinance at lower leverage, or a short-term rental plan where local rules allow it. Run the exit before you buy, not after the bridge term is half over.
If the home will be a short-term rental, confirm the city's permit rules first. Fayetteville is stricter with non-owner-occupied whole-home rentals, while Bentonville, Rogers and Bella Vista each have their own requirements, and a jumbo DSCR refinance on projected short-term income only works where the use is allowed.
Larger balances usually need a full valuation on each property. For new construction, the appraiser will want the certificate of occupancy, the builder's warranty information and comparable sales or leases in the subdivision. Budget property taxes on the finished value, since a new parcel's first bill may reflect only the land. Arkansas uses a 20% assessment ratio, and a sale can trigger reappraisal.
Northwest Arkansas has severe spring storms, hail and occasional tornadoes. New roofs help with premiums. On a package, get one insurance quote that covers every building with the same carrier if you can, and confirm wind and hail deductibles before you set your exit numbers. On new construction, ask the builder for roof and window specifications, which can help with pricing.
Packages of five or more properties usually exit into a blanket portfolio loan. Individual properties can each take a DSCR loan, which makes it easier to sell some and keep others. A single property with a large balance can move to a jumbo DSCR loan, with max LTV that varies by program on larger balances. Some investors sell one or two duplexes to owner-occupant buyers to pay down the bridge and keep the rest.
Whichever exit you pick, line it up early. Order the refinance valuation as soon as the last units lease, gather the signed leases and rent deposits, and keep the bridge term long enough to cover a slower lease-up than you expect. A few extra months of interest-only payments costs less than a rushed refinance at the wrong amount.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the property list, price, leasing status, target rents and exit plan through the form below or call (877) 298-1001. Statewide large bridge details are on our Arkansas large bridge loans page, and long-term options above $1.5M are on Fayetteville jumbo DSCR loans.
Yes, when the properties and exit support it. Balances of $1M and up are reviewed case by case.
Rates start from 7.99%. Your pricing depends on leverage, the properties, your experience and the exit.
A bridge loan is built for that situation. The long-term refinance comes after the units are leased.
Larger balances usually need a full valuation on each property.
Yes, but plan the exit carefully. Many high-value homes do not cover a full DSCR payment on long-term rent at normal leverage.
In as little as 10 days when the file is complete and valuations are back.
No. Our investor loans are business-purpose loans on non-owner-occupied property, used for rentals and investment purchases.
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