In McAllen, $1M does not buy one rental house; it buys several. That is the honest place to start with large bridge loans in the Valley. A $1M to $5M+ request here almost always means a package of fourplexes, a group of homes, a 5 to 8 unit building or a high-end home in north McAllen or Sharyland.
In short: LendingStreet makes residential investor bridge loans in McAllen and the Rio Grande Valley 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 of each property. Typical exits are a sale or refinancing into DSCR loans, a blanket portfolio loan or, for the largest single properties, a jumbo DSCR loan.
Because individual rentals are modestly priced, large loans come from volume. Situations we see in Hidalgo and Cameron counties:
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, and closings can happen in as little as 10 days with a complete file.
On $1M+ loans, expect a full valuation on each property, a review of your experience and your lease-up or renovation plan, and enough liquidity to carry interest while the properties stabilize. A package of leased buildings is a simpler file than a set of empty new builds.
This example is illustrative and not a quote. An investor buys 4 newly built fourplexes in Mission from a builder for $490,000 each, $1,960,000 total. None are leased yet. A bridge loan at 75% of the price is $1,470,000, with estimated monthly interest of about $12,862 during lease-up.
Once all 16 units rent at $1,100, each building earns $4,400 a month and appraises at $510,000. Each one then refinances into its own DSCR loan at 75% LTV, $382,500, which together raise $1,530,000 against the $1,470,000 payoff. Each building's payment is about $3,924 including estimated principal and interest of $2,674, taxes and insurance, for DSCR of about 1.12x.
If the investor owned a fifth rental, all of them could refinance together into a blanket portfolio loan instead.
| Stage | Amount |
|---|---|
| Purchase, 4 fourplexes | $1,960,000 |
| Bridge loan at 75% | $1,470,000 |
| Estimated monthly interest during lease-up | $12,862 |
| Value per building after lease-up | $510,000 |
| DSCR refinance per building | $382,500 |
| Payment per building | $3,924 |
| Rent per building | $4,400 |
| DSCR per building | About 1.12x |
New fourplexes in the Valley can lease quickly when they are priced right, but 16 units do not fill in a week. Budget interest, taxes, insurance, utilities and marketing for a realistic lease-up period, plus a cushion. Leasing ahead of the UTRGV school year or the start of a new hospital hiring cycle can help.
Price the units to the market you can prove. Lenders on the refinance will use leases and comparable rents, not a pro forma, so recent leases on similar Valley fourplexes are the strongest support. If you lease up slowly at lower rents, the refinance amount will be lower, which is why a bridge sized at 75% of the price leaves room.
New buildings are often assessed partly as land in the year they are finished. The next Hidalgo County Appraisal District value will reflect the completed building, and the bill can jump. Budget taxes on your purchase price at the full combined rate, with no homestead exemption. Texas has no state transfer tax, which keeps closing costs on a large package lower than in many states.
Most Valley bridge loans end in DSCR refinances once the properties are leased. Our DSCR loans go up to 80% LTV on purchase and 75% on cash-out and qualify on rent. With five or more properties, a blanket loan combines them under one payment. Single properties large enough for our jumbo DSCR program, roughly $1.5M and up, are rare in McAllen outside luxury homes, so most investors use DSCR or blanket exits.
A sale is also an exit. Some investors sell one or two fourplexes once leased to pay down the bridge and keep the rest.
Gulf storms bring wind, hail and heavy rain to the Valley. Each building in a package needs its own insurance, and some streets sit in mapped flood zones. Get quotes and flood determinations during your due diligence period. Properties on South Padre Island or near the coast usually need windstorm coverage as well.
Builders' warranties on new construction help with repairs, but they do not replace insurance. Confirm what the warranty covers and for how long, and whether it transfers to you at closing.
A DSCR loan qualifies on the rent a property earns today. Empty new buildings, homes with below-market leases and properties that need work often cannot support a DSCR loan on day one. A bridge loan funds the purchase while you lease up or renovate, then the DSCR refinance follows once rent supports it.
If the package is already leased at market rents, DSCR loans from the start may cost less. We will tell you which approach fits the deal.
A complete file moves faster, and builders selling several fourplexes often favor the buyer who can close cleanly and on time. Send the deal through the form below or call (877) 298-1001.
Yes. Our residential bridge program runs to $5M+ on 1 to 8 unit properties. In the Valley, large balances usually mean packages of fourplexes or homes.
Larger balances usually need a full valuation of each property.
Rates start at 7.99% for strong files. Large balances are priced case by case.
Yes, with a lease-up plan and the reserves to carry interest until units rent.
In as little as 10 days with a complete file.
Refinancing into DSCR loans or a blanket portfolio loan once the properties are leased, or selling some of them.
Not in this program. Buildings with 9 or more units are commercial loans.
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