In Palm Bay, a $1 million bridge loan rarely buys one house. It buys a group of newly built homes from a builder, a package of older block homes, a few duplexes, or a small building in Melbourne. The exceptions are on the barrier island, where oceanfront homes in Melbourne Beach and Indialantic can pass $1 million on their own.
In short: LendingStreet provides short-term, interest-only residential investor bridge loans from $1M to $5M+ for 1-8 unit properties in Palm Bay and across Brevard County, with rates from 7.99% and closings in as little as 10 days on a complete file. Larger balances usually need a full valuation and are reviewed case by case. In Palm Bay, large balances usually mean packages of homes or small buildings, with exits by sale or a blanket, individual or jumbo DSCR refinance.
Palm Bay's home prices are moderate by Florida standards, so most $1M+ bridge requests involve several properties: five to twelve newly built homes bought from one builder, a portfolio of older Port Malabar block homes, a row of duplexes, or a 5 to 8 unit building in Melbourne or Cocoa.
Single properties above $1 million are mostly on the barrier island, in Melbourne Beach, Indialantic, Satellite Beach and Cocoa Beach, or on the Indian River in Melbourne and Rockledge. Investors buy these to renovate and sell, or to rent where local rules allow.
A bridge loan is short term and interest-only, built for speed or for properties that are not yet ready for permanent financing.
This example is illustrative and not a quote. An investor buys six newly completed homes in Palm Bay from one builder for $1,860,000, $310,000 each. Leverage varies by program; this example assumes a bridge at 65% of price, or $1,209,000, with estimated interest-only payments of about $10,579 a month while the homes are leased.
Once leased at $2,250 each, $13,500 a month, the homes are valued at $1,920,000 combined. A blanket DSCR refinance at 65% of value is $1,248,000, enough to retire the bridge. Estimated principal and interest is about $8,726; with taxes on full value of about $2,880, insurance of $1,020 and HOA dues of $240, the total is about $12,866, for a portfolio DSCR of about 1.05x.
Note the tax figure. The first bills on new homes may reflect only land, about $315 a month for all six here. Underwriting the refinance on that number would overstate DSCR.
| Stage | Amount |
|---|---|
| Purchase price, 6 new homes | $1,860,000 |
| Bridge loan at 65% of price | $1,209,000 |
| Estimated monthly interest-only payment | $10,579 |
| Value once leased | $1,920,000 |
| Refinance at 65% of value | $1,248,000 |
| Monthly rent | $13,500 |
| Refinance payment with taxes, insurance and HOA | $12,866 |
| Portfolio DSCR | 1.05x |
Larger balances usually need a full valuation of each property. New homes in Palm Bay are compared with recent sales of similar new and nearly new homes, which are usually plentiful. Older block homes are compared within their own neighborhoods.
Oceanfront and riverfront homes have fewer comparable sales and are valued on frontage, elevation and condition. Allow more time for those valuations.
Hurricane wind coverage is a major cost on every Brevard property. New homes built to current Florida Building Code standards usually insure more easily than older ones. Barrier island and riverfront homes often need flood insurance and may face coastal construction rules for renovations.
Make sure coverage is in place from closing. For renovations, builder's risk or vacant-property coverage may be needed.
When repair funds are part of the loan, they are usually released through draws after inspections. Hurricane season runs June through November, and a storm can delay work and materials. Build slack into the timeline.
For older Port Malabar homes, common repairs include roofs, septic systems, plumbing and HVAC. Budget for them up front.
For multi-million dollar packages, lenders look at your experience with similar properties, your reserves for carrying interest during lease-up or repairs, and who will manage the homes. Bring a schedule of properties you own or have sold.
Leasing six or more homes at once in one area can take time. A local property manager with a record in Palm Bay helps both the review and the lease-up.
Bulk purchases from builders are attractive because the homes are new, but they also put several similar homes on the rental market in the same area at the same time. That can slow lease-up or push you to lower asking rents. Stagger move-in dates where you can, and price each home against current rental listings, not just the builder's projections.
Ask the builder about warranties, the punch list and when certificates of occupancy were issued. Small items left open at closing can delay leasing, and any warranty claims are easier to manage while the builder is still active in the subdivision.
Most Palm Bay packages refinance into a blanket portfolio DSCR loan, or into individual DSCR loans if you plan to sell some homes. Small buildings of 5 to 8 units go to 5-8 unit DSCR programs, where maximum LTV varies by program. A high-value beachside home may exit by sale or into a jumbo DSCR loan if rent supports it.
Florida charges documentary stamp tax on deeds and notes and an intangible tax on new mortgages, which add to both the bridge and the refinance. Include them in your budget. To start, send the property list, price, repair budget, timeline and exit plan with the form below, or call (877) 298-1001.
Yes. Bulk purchases of completed homes are a common use. The usual exit is a blanket DSCR refinance once the homes are leased.
Rates start from 7.99%. Larger balances are priced case by case based on leverage, experience and the exit.
In as little as 10 days on a complete file. Multi-property packages often take longer.
Larger balances usually need a full valuation of each property.
First-year bills on new construction may reflect only land value. The refinance should be underwritten on taxes for the full completed value.
Yes, for non-owner-occupied investment properties. Expect flood insurance, coastal construction rules and a detailed valuation.
Yes. It can give you time to finish repairs or lease-up before a permanent refinance.
It depends on rents and competing listings. Leasing several similar homes in one area at once can take longer, so carry reserves for interest during lease-up.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.