A $1 million-plus bridge loan in Philadelphia can mean a renovated Rittenhouse townhouse, a row of newly built duplexes in Kensington, a dozen rowhomes from a landlord's estate or a payoff for a construction loan that came due before the units leased. What they share is a deadline.
In short: LendingStreet's residential bridge loans run from $150,000 to $5M+, with rates from 7.99% and larger balances reviewed case by case. They are short-term, interest-only loans on 1 to 8 unit investment properties that can close in as little as 10 days, with exits by sale or refinance into a DSCR, blanket or jumbo DSCR loan. Larger balances usually need a full valuation.
Philadelphia sits between two markets. Single rowhomes in much of the city trade at modest prices, so large balances often mean packages. But Center City, Society Hill, Queen Village, Fitler Square and Chestnut Hill have homes and townhouses well above $1M, and newer construction in Fishtown and Northern Liberties pushes small buildings into seven figures.
That gives large bridge loans a wide range of uses here.
Philadelphia has had a steady stream of small infill projects: two- and three-unit buildings on rowhouse lots, built by local developers on short-term construction financing. When those loans mature before the units are leased or sold, a bridge loan can pay them off and give the owner time to stabilize.
Investors also buy completed projects from builders who want out. A bridge loan covers the purchase and lease-up, and a long-term DSCR or blanket loan follows once rents are in place.
This example is illustrative and not a quote. An investor agrees to buy six newly completed duplexes, 12 units in all, from a Kensington builder for $3,300,000. A bridge loan at 75% of the price is $2,475,000, with estimated interest-only payments of about $21,656 a month during lease-up.
Within several months all 12 units are leased at about $2,300, or $27,600 a month. Appraisals show a combined value of $3,600,000, and a blanket DSCR refinance at 70% LTV is $2,520,000, which repays the bridge loan.
On the refinance, estimated principal and interest on a 30-year loan is about $17,534. Taxes, still partly abated, total $1,900 a month and insurance $1,300, for a total payment near $20,734 and portfolio DSCR around 1.33x. The investor also checks the ratio after the abatement phases out.
| Item | Bridge loan | Blanket DSCR refinance |
|---|---|---|
| Basis | Price $3,300,000 | Value $3,600,000 |
| Loan amount | $2,475,000 (75%) | $2,520,000 (70%) |
| Monthly payment | About $21,656 interest-only | About $20,734 with taxes and insurance |
| Units leased | Lease-up period | 12 of 12 |
| DSCR | Not used | About 1.33x |
Philadelphia's sheriff sales are a well-known source of investment property, and buyers must put down a deposit at the sale and settle the balance on a short timeline. That is a natural fit for a bridge loan that can close in as little as 10 days once title and valuation are ready.
Do your homework first. Some properties come with occupants, liens, code violations or title issues, and the city has its own redemption rules on certain sales. Talk to a title company before you bid.
Investors who buy several sheriff sale properties at once sometimes finance the group on one bridge loan, renovate them over the following months and then move the stabilized homes onto a blanket DSCR loan. That approach works best when you already have contractors lined up and a realistic budget for older rowhomes, which often need roofs, electrical and plumbing work.
Larger balances usually need a full valuation. On a high-value Center City townhouse, comparable sales may be few, and unique features can make value harder to support. On a package, each property is valued, and a few weak ones can lower the total.
Bring a property schedule, recent comparable sales and your renovation budget. Builders' plans, permits and certificates of occupancy help on newer construction, and they also confirm the legal unit count, which drives both value and the rent used at refinance.
The combined city and state realty transfer tax in Philadelphia is among the highest in the country and is typically split between buyer and seller by contract. On a $3M package, it is a large line item in cash to close.
Carrying costs during the bridge term include interest, real estate taxes, insurance and, for vacant properties, vacant or builder's risk coverage. Abated new construction lowers taxes for a period, but check the schedule.
Most large Philadelphia bridge loans exit through a refinance into a DSCR loan, a blanket portfolio loan, or a jumbo DSCR loan on a high-value property. Some investors sell individual units or homes to pay down the loan.
Make sure the exit works on full taxes, realistic rents and current insurance quotes, not on the best case. On high-value Center City and Chestnut Hill homes, long-term rents may not support a large refinance on their own, so a sale or a lower-leverage jumbo DSCR loan may be the realistic exit. On packages of rowhomes and newer duplexes, rent-based refinancing is usually more straightforward.
Leave room in the timeline. Leasing 12 new units at once can take longer than expected, especially if several similar buildings are coming on the market nearby, and the bridge term should cover that.
Send the property schedule or address, the purchase contract, renovation plans, expected rents and your exit. The financing team will size the loan and test the refinance.
Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below to get a quote.
Our residential bridge loans run from $150,000 to $5M+, with larger balances reviewed case by case.
Bridge rates start from 7.99%. Pricing on larger balances depends on the properties, leverage and your experience.
Larger balances usually need a full valuation of each property.
Yes. It is a common use in Philadelphia, as long as there is a clear exit by sale or refinance.
It can fit the short settlement window if title and valuation can be completed in time. Review title risks before bidding.
A refinance into a DSCR, blanket or jumbo DSCR loan once properties are leased, or a sale.
Yes. Residential bridge loans cover 1 to 8 unit investment properties.
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