In Madison, a $1M+ bridge loan usually means one of three things: a pair of student buildings near campus that need work before August, a package of east side duplexes from a retiring landlord, or a high-value lake home with a short window to close.
In short: LendingStreet makes residential investor bridge loans in Madison from $1M to $5M+ on 1 to 8 unit properties, with rates from 7.99%, interest-only payments and closings in as little as 10 days. Larger balances are reviewed case by case and usually need a full valuation. Typical exits are a sale or a refinance into a DSCR or jumbo DSCR loan once the property is leased.
Our residential investor bridge program runs from $150,000 to $5M+ on 1 to 8 unit properties. Rates start at 7.99%. Loans are short-term and interest-only. Closings can happen in as little as 10 days when title, valuation and documents are ready.
On $1M+ loans, expect a full valuation, a review of your renovation budget and experience, and more liquidity. Leverage depends on the deal and the exit.
We look hardest at the exit. A bridge loan is only as good as the plan to repay it, so we want to see the rent you expect after the work, the value that supports a refinance or sale, and enough cash to carry the interest if things take longer than planned.
This example is illustrative and not a quote. An investor buys two six-unit houses near campus for $2,100,000 with $180,000 of work planned before the next August lease cycle. The bridge loan covers 75% of the price plus the full renovation budget, for $1,755,000. Estimated monthly interest is about $15,356.
After renovation and new leases, combined rent is $24,000 a month and the buildings appraise at $2,600,000. A DSCR refinance at 70% LTV is $1,820,000, enough to pay off the bridge. Estimated principal and interest is about $12,726, plus $4,300 in taxes and $950 in insurance, for a payment of about $17,976 and DSCR of about 1.34x. Max LTV on 5 to 8 unit buildings varies by program.
| Stage | Amount |
|---|---|
| Purchase price | $2,100,000 |
| Renovation budget | $180,000 |
| Bridge loan | $1,755,000 |
| Estimated monthly interest | $15,356 |
| Value after work | $2,600,000 |
| DSCR refinance at 70% | $1,820,000 |
| Refinance DSCR | About 1.34x |
Campus-area rentals in Madison typically sign leases months ahead for an August move-in. A bridge loan that closes in spring gives you a short window to renovate and re-lease. If the work runs late, you may lose a year of higher rents, so build a realistic schedule and contingency into the budget.
Contractors in Madison are busy in summer, which is exactly when campus work has to happen. Lock in your crew before closing, order long-lead items such as windows and appliances early, and keep a cushion for inspections and permits.
Most Madison bridge loans end in a refinance once leases are in place. Our DSCR loans go to 75% LTV on cash-out and qualify on rent. Balances of about $1.5M and up can use our jumbo DSCR program, where max LTV can be lower and the review is more detailed. A package can also refinance into a blanket portfolio loan.
Some investors sell instead. A renovated lake home, or one building out of a package, can be sold to repay part of the bridge while the rest is refinanced. Talk through the plan up front so the loan is structured to match it.
Wisconsin charges a real estate transfer fee on sales, and Madison property taxes are high relative to many Midwestern cities. Budget taxes on your purchase price, since a reassessment can follow a sale. Older campus buildings may need code updates, fire safety work or new systems.
Lakefront homes bring their own costs: shoreline rules, higher insurance and, for older homes, systems that need updating before a tenant moves in. Carry costs on a large bridge are real money each month, so add interest, taxes, insurance and utilities for the full renovation and lease-up period to your budget.
A DSCR loan qualifies on the rent a property earns now. A building with below-market leases, vacant units or work to finish may not qualify at the leverage you need. A bridge loan covers the gap: you buy and renovate on short-term money, then refinance once the rent supports the larger loan.
If the property already rents well, a DSCR loan from the start may cost less. We will tell you which fits. In Madison, the bridge route tends to make sense for campus buildings with leases to reset, packages bought below market, and homes that need real work before they can rent at full value.
A large bridge request moves fastest when the file arrives complete. Madison sellers of campus buildings and lake homes often have several offers, and a lender that can confirm terms quickly helps your offer stand out. Have these ready:
Send the deal through the form below or call (877) 298-1001. We will look at the purchase, the work and the exit and tell you quickly whether it fits. If a DSCR loan or a blanket loan would serve you better from the start, we will say so.
Our residential bridge program runs to $5M+ on 1 to 8 unit properties, reviewed case by case.
Larger balances usually need a full valuation.
Rates start at 7.99% for strong files. Pricing on large balances depends on the deal.
In as little as 10 days with a complete file.
Yes, if each property is 1 to 8 units. The package can later refinance into a blanket or DSCR loan.
A sale or a refinance into a DSCR or jumbo DSCR loan once the property is leased.
Not in this program. Larger buildings are commercial loans.
Yes. On some programs, large bridge loans can include a renovation budget along with the purchase.
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