Houston's size cuts both ways for large bridge deals. There are more builders selling blocks of new rentals, more high-value homes and more maturing loans than in most metros, and also more ways for a timeline to slip when a valuation, a flood zone or a tax bill comes in different from the plan.
In short: LendingStreet provides residential investor bridge loans in Houston 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 on 1-8 unit properties, and larger balances usually need a full valuation. The exit is a sale or a refinance into a DSCR, blanket or jumbo DSCR loan.
In Houston, a large bridge balance can mean one high-value home or a group of ordinary ones. Inside the loop, River Oaks, West University Place, Bellaire, Tanglewood, Memorial and the Heights have homes that clear $1M on their own, often bought to renovate and resell or rent to executives.
Across the suburbs, large balances more often mean packages: blocks of new homes from builders in Katy, Cypress, Fulshear, Conroe and the Grand Parkway corridor, a set of rentals bought from another investor, or a small group of fourplexes on the southwest side.
| Deal type | Typical Houston location | Usual exit |
|---|---|---|
| Luxury renovation or resale | River Oaks, West U, Bellaire, Memorial, Heights | Sale |
| Build-to-rent package from a builder | Katy, Cypress, Fulshear, Conroe, Grand Parkway | Blanket or DSCR refinance |
| Portfolio bought from another investor | Spring Branch, Alief, Pasadena, Humble | Blanket refinance or partial sales |
| Several 2-4 unit buildings | Gulfton, Sharpstown, East End | DSCR refinance |
| Payoff of a maturing loan | Anywhere in the metro | DSCR, blanket or jumbo DSCR |
Speed is the most common reason. Builders closing out a phase, estates and investors exiting a portfolio often want certainty within weeks. Texas nonjudicial foreclosure sales are generally held on the first Tuesday of the month at the county, and buyers there need funds ready fast.
The second reason is timing. A rental package with vacancies, deferred work or a mix of short leases may not qualify for a long-term loan yet. A bridge carries it while you lease up or renovate, then you refinance on the stabilized rent.
This example is illustrative and not a quote. An investor agrees to buy 12 newly built rental homes from a builder in a Cypress-area subdivision for $3,300,000, about $275,000 each. A bridge loan of $2,475,000 funds 75% of the purchase; leverage on a package varies by program. Estimated interest-only payments are about $21,656 a month while the homes lease up.
Once the homes are leased at about $2,350 each, $28,200 a month combined, and appraise at $3,600,000, the investor refinances into a blanket DSCR loan at 70% of value: $2,520,000. Estimated principal and interest is about $17,534, taxes including MUD assessments about $7,800 and insurance about $1,800, for a total of about $27,134. Portfolio DSCR is about 1.04x.
The margin is thin because new Houston subdivisions often carry MUD taxes. If the tax bill came in higher, a slightly lower refinance amount would keep the ratio above 1.0x.
| Stage | Amount |
|---|---|
| Package purchase price | $3,300,000 |
| Bridge loan (75% of cost) | $2,475,000 |
| Estimated monthly interest-only payment | $21,656 |
| Appraised value after lease-up | $3,600,000 |
| Blanket DSCR refinance at 70% | $2,520,000 |
| Estimated refinance payment with taxes and insurance | $27,134 |
| Portfolio DSCR at $28,200 rent | About 1.04x |
Larger balances usually need a full valuation, and on a package that can mean an appraisal on each home or a review of the group. In luxury inner-loop neighborhoods, lots, teardown values and unique finishes make comparables harder to find. In new subdivisions, the appraiser will look at what the builder is selling to owner-occupants down the street.
Texas is a non-disclosure state, so sale prices are not public record. Bring your own comparable sales and signed leases; they help support the value.
On a multi-home deal, flood exposure can vary house by house. Check each address on the FEMA flood map, ask about Harvey and later flood history, and get wind and flood quotes before you sign. A single home in a high-risk zone can change the insurance budget for the whole package.
Texas has no state real estate transfer tax and no mortgage recording tax, which keeps closing costs lower than in many states. Title insurance premiums are set by the state. Property taxes are the bigger long-term cost: budget on the full rate, including any MUD, because the refinance will use the real bill.
New homes bought from a builder may carry only a partial-year tax bill based on land value. The first full assessment can be much higher, so size the refinance on taxes at the full combined rate applied to your purchase price.
On a large Houston bridge, your track record carries real weight. An investor who has already bought, leased and refinanced several homes in the same submarket will usually get a clearer answer than someone stepping up from one house to twelve. Bring a list of past deals with addresses, purchase and sale or refinance dates and results.
Reserves matter too. Interest-only payments on a multimillion-dollar loan add up quickly, and a lease-up that takes three months longer than planned has to be covered from cash. Plan for slower leasing in late fall and winter, and for storm-season delays on any renovation.
If a renovation is part of the plan, the budget, contractor and timeline are reviewed alongside the purchase. Larger scopes are usually funded in stages as work is completed rather than all at closing.
Every bridge needs a clear way out. For a luxury resale, that means a realistic price and marketing time. For a rental package, it means a refinance that works at today's rents and taxes, whether as one blanket loan, individual DSCR loans or, for a single high-value home, a jumbo DSCR loan. Our bridge-to-DSCR guide covers the steps.
Send the property list or address, price, scope of work, current leases and your exit plan. A complete package gets a faster answer. Use the form below or call (877) 298-1001.
Our residential investor bridge program runs from $150,000 to $5M+, and larger balances are reviewed case by case.
Rates start from 7.99%. Pricing on large balances depends on the deal, leverage and your experience.
Larger balances usually need a full valuation, often on each property in a package.
Yes. Build-to-rent packages are a common use, with an exit into a blanket or individual DSCR loans once the homes are leased.
Yes. A bridge can retire a maturing loan while you stabilize the properties and set up a long-term refinance.
Foreclosure sales require funds on a short timeline. Talk to us before the sale so the financing plan matches the auction terms.
Yes. Flood insurance cost and flood history affect value and the refinance payment, so get quotes early.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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