Indiana is a scale market. A $1M+ bridge here usually buys ten or more Indianapolis-area homes, a group of student rentals in Bloomington or West Lafayette, or a high-value home in Carmel or Zionsville.
In short: LendingStreet offers Indiana 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. Indiana investors mostly use them to buy rental packages and student housing, then refinance into blanket, DSCR or jumbo DSCR loans.
Indianapolis has one of the larger single-family rental markets in the Midwest. Investors buy in Fountain Square, Irvington, Bates-Hendricks and the east and west sides, and in suburbs such as Lawrence, Beech Grove, Greenwood and Avon. Carmel, Fishers, Westfield and Zionsville have higher-value homes.
Bloomington (Indiana University) and West Lafayette (Purdue) have strong student rental demand. Fort Wayne, Evansville and South Bend, home to Notre Dame, have lower prices and steady tenants. In the northwest, the Indiana Dunes and Lake Michigan towns such as Chesterton and Michigan City have vacation rentals.
Indianapolis has also seen large numbers of homes bought by institutional investors, and some of those owners sell groups of homes when they rebalance. These sales can be a source of packages for smaller investors with bridge financing ready.
| Area | What a $1M+ bridge usually buys | Typical exit |
|---|---|---|
| Indianapolis | Packages of 8 to 20 rentals | Blanket or individual DSCR |
| Carmel, Fishers, Zionsville | High-value homes or small groups | DSCR or jumbo DSCR |
| Bloomington, West Lafayette | Student houses and 5-8 unit buildings | DSCR on combined rent |
| Fort Wayne, Evansville, South Bend | Larger rental portfolios | Blanket refinance |
| Chesterton, Michigan City | Lake Michigan vacation rentals | STR DSCR refinance |
Indiana large-bridge requests usually look like:
The program covers 1-8 unit investment property from $150,000 to $5M+, with rates from 7.99% and interest-only payments. We size large balances deal by deal rather than off a rate sheet, looking at value, cost, experience and the exit.
Plan on a full valuation for a large balance. That is the main item that sets the calendar; when it is ordered right away and the title work is clean, closings can happen in as little as 10 days.
Indiana's constitution caps property tax bills as a share of assessed value, at 1% for homesteads, 2% for residential rentals and 3% for other property. Rentals therefore pay roughly twice the homestead rate. A seller's homestead bill is not a good guide for your DSCR math.
Indiana does not have a real estate transfer tax; a small sales disclosure fee applies. That keeps closing costs on large packages lower than in many states, though title and recording fees still apply to each property.
This example is illustrative and not a quote. An investor buys fourteen single-family rentals on the east and west sides of Indianapolis from one landlord for $1,820,000. Eleven are leased and three need work before leasing.
The three vacant homes are repaired and leased, and the full portfolio refinances on one blanket loan.
Taxes reflect the 2% rental cap rather than the homestead cap. Insurance is the combined cost of fourteen policies, which is a large line on a package of older homes.
Indianapolis requires landlords to register rental properties with the city. Some other cities, including Bloomington, require rental permits and inspections. Confirm registration for every property in a package.
Many Indianapolis rentals were built before 1978, so lead paint disclosure rules apply, and older homes may need roofs, furnaces or sewer line work. Inspect each home in a package rather than relying on a sample.
In Bloomington and West Lafayette, student leases usually run August to August, so a spring purchase gives time to repair and lease for the next school year.
Many Indianapolis rentals sell below $150,000, which is under the minimum for an individual DSCR loan. A blanket loan solves that, financing five or more properties on one loan with one payment and release provisions when a home is sold.
Higher-priced homes in the package can be refinanced separately if you want flexibility. Some investors keep lower-priced homes on a blanket and move suburban homes into individual DSCR loans.
Decide early, because it affects how the valuations are ordered and how long the refinance takes.
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.
Use the form below or call (877) 298-1001. These items let us move straight to terms:
Yes. Residential rentals are capped at 2% of assessed value versus 1% for homesteads, so budget on the rental rate.
No. A small sales disclosure fee applies, along with title and recording costs.
Yes, in a package. They can stay together on a blanket loan after the bridge.
Yes. Indianapolis requires rental registration, and some other cities require permits and inspections.
Plan on it. Larger balances usually need a full valuation, and getting it scheduled the first week is what keeps a quick close possible.
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 from $150,000 to $5M+, and larger balances are reviewed case by case.
A sale, or a refinance into a DSCR or jumbo DSCR loan that qualifies on rent instead of personal income.
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