The Phoenix market produces large bridge deals in two ways. At the top end, Arcadia, the Biltmore area, Paradise Valley and north Scottsdale have plenty of homes above $1M that investors buy to renovate or hold. At the volume end, builders and institutional sellers offer packages of newer homes, and a single closing can easily pass $3M.
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.
Phoenix's growth means a steady supply of large residential deals. Bridge loans here typically cover purchases or payoffs where speed matters and the long-term plan comes later.
Homebuilders have been active across the West Valley, the far East Valley and Pinal County, in places like Buckeye, Goodyear, Surprise, Queen Creek and San Tan Valley. When a builder has finished homes it wants to move, it may sell several to one investor in a single closing. Built-to-rent communities also change hands in pieces.
A bridge loan covers the purchase and the lease-up period. Once homes are leased, a blanket DSCR loan can refinance them together.
This example is illustrative and not a quote. An investor buys eight newly built homes in a West Valley subdivision from a builder for $3,040,000, about $380,000 each. A bridge loan at 75% of the price is $2,280,000, with estimated interest-only payments of about $19,950 a month during lease-up.
The homes lease at about $2,250 each, or $18,000 a month, and appraise at $3,200,000 combined. Taxes total $1,200 a month, insurance $880 and HOA dues $600. A blanket refinance at 70% LTV, $2,240,000, would carry a total payment of about $18,266 and DSCR of about 0.99x, just short of 1.0x.
At 65% LTV, the refinance is $2,080,000, the total payment about $17,153 and DSCR about 1.05x. The investor plans the exit at that level and brings the difference from the bridge payoff to closing, or keeps one or two homes off the blanket loan.
| Item | Bridge loan | Refinance at 70% | Refinance at 65% |
|---|---|---|---|
| Loan amount | $2,280,000 | $2,240,000 | $2,080,000 |
| Monthly payment | About $19,950 interest-only | About $18,266 | About $17,153 |
| Monthly rent | Lease-up | $18,000 | $18,000 |
| DSCR | Not used | About 0.99x | About 1.05x |
In Arcadia, the Biltmore area and Paradise Valley, investors buy dated homes on large lots, renovate them and either sell or hold as high-end rentals. A bridge loan fits the renovation period. Be realistic about the exit: long-term rents on luxury Valley homes often do not support a high-leverage refinance, so a sale or a lower-leverage jumbo DSCR loan is the usual path.
Some high-end homes do well as furnished rentals in peak season, but city licensing and HOA rules apply, and summer revenue drops.
Larger balances usually need a full valuation. For new-construction packages, appraisers compare against builder sales and resales in the same subdivision, and builder incentives can complicate comparisons. For luxury homes, comparable sales can be limited.
Bridge loans can close in as little as 10 days when title and valuation are ready. Arizona trustee sales move quickly, so prepare before bidding.
Arizona does not charge a real estate transfer tax, which helps on large purchases. Property taxes are low relative to value, but rental properties are classified differently from owner-occupied homes, and HOA dues in newer subdivisions add up across a package.
Carrying costs during the bridge term include interest, taxes, insurance, HOA dues and summer utilities on vacant homes.
Most large Phoenix bridge loans exit through a blanket or individual DSCR refinance once homes lease, a jumbo DSCR loan on a high-value property, or a sale. Because rents in the Valley have not kept pace with prices, plan the exit at moderate leverage and confirm the rent numbers with current lease comps.
Some investors sell part of a package to reduce the refinance amount and keep the strongest homes. Others hold the newest homes, which tend to carry lower insurance and repair costs, and sell older ones. Whatever the plan, write it down before closing, because the bridge term and reserves should match how long the exit realistically takes in the current Valley market.
Large bridge loans move fastest when the file is complete from the start. On a builder package, that means the purchase contract, a list of homes with lot numbers and addresses, HOA documents for the subdivision and any builder incentives or credits. On a luxury purchase, it means the contract, renovation scope and budget, contractor information and recent comparable sales.
For payoffs, bring the current lender's payoff statement and maturity date, and the leases or rent roll on the properties. For trustee sale purchases, coordinate title review before the sale, since the time between the auction and the funding deadline is short.
Send the property list or address, purchase contract, any renovation budget, expected rents and your exit plan. The financing team will size the bridge loan and test the refinance at a few leverage levels.
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.
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. Buying several new homes in one closing and leasing them up is a common Valley use, followed by a DSCR or blanket refinance.
Valley rents have not kept pace with prices, so a lower loan amount is often needed for the rent to cover the payment.
No. Arizona does not have a real estate transfer tax, which keeps closing costs lower.
Yes. Residential bridge loans cover 1 to 8 unit investment properties.
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