Large bridge loans in Sacramento show up in three places: Midtown and Downtown small buildings, packages of suburban rentals sold by long-time owners and high-end homes in the foothill suburbs. In each case the loan buys time, and the plan for repaying it matters as much as the purchase.
In short: LendingStreet makes residential investor bridge loans from $1M to $5M+ in the Sacramento region on 1 to 8 unit properties and packages of rentals. Bridge rates start from 7.99%, terms are short and interest-only, and closings can happen in as little as 10 days. Larger balances usually need a full valuation, and the exit is a sale or a refinance into a DSCR or jumbo DSCR loan.
In the urban core, investors buy 5-8 unit buildings and groups of fourplexes in Midtown, Boulevard Park and Downtown, often with below-market rents or units that need updating. These buildings can trade above $1M, and sellers frequently want a fast close.
Build-to-rent and infill builders are another source. When a construction loan on a group of new duplexes or townhomes matures before the units are fully leased, a bridge loan can pay it off and give the owner time to lease up before refinancing.
In the suburbs, the large balances come from packages: a long-time landlord selling eight or ten homes in Citrus Heights, Rancho Cordova and Carmichael at once. In Granite Bay, El Dorado Hills, Folsom and parts of Roseville, single luxury homes bought as rentals can also exceed $1M.
Most large bridge requests in the Sacramento area fit one of these situations.
This example is illustrative and not a quote. An investor buys two Midtown fourplexes, eight units in all, for $2,450,000 and plans $180,000 of unit updates as leases turn over. The bridge loan is sized at 75% of total cost, or $1,972,000. Estimated interest-only payments are about $16,433 a month during the hold.
After the work, the buildings are expected to appraise at $2,950,000 and rent for about $2,400 per unit, or $19,200 a month. A DSCR refinance at 70% of value would be about $2,065,000, which repays the bridge. With Prop 13 taxes on the purchase price of about $2,348 a month and insurance of $650, the payment is about $17,085 and the DSCR about 1.12x.
| Item | Amount |
|---|---|
| Purchase price, two fourplexes | $2,450,000 |
| Renovation budget | $180,000 |
| Bridge loan at 75% of cost | $1,972,000 |
| Estimated monthly interest-only payment | $16,433 |
| Value after work | $2,950,000 |
| DSCR refinance at 70% | $2,065,000 |
| Monthly rent after work | $19,200 |
| Refinance payment with taxes and insurance | $17,085 |
| DSCR after refinance | About 1.12x |
Many Sacramento value-add plans assume rents will rise after renovation. Under AB 1482 and the City of Sacramento's tenant protection program, increases on occupied units are capped, and just-cause rules limit when tenants can be asked to leave. Renovation plans usually work on units as they turn over naturally.
Build the timeline around that. A bridge loan with enough term to let leases turn, rather than one that assumes immediate rent increases, gives you room to reach the refinance.
In the example above, the investor renovates units as tenants move out over the first year, rather than all at once. That keeps most of the rent coming in during the hold, which helps cover interest, and it avoids relying on rent increases the rules may not allow.
Larger balances usually need a full valuation, and buildings with several units get an income-focused review. In older Midtown buildings, appraisers look closely at legal unit counts and condition, so have permits and floor plans ready.
Bridge loans can close in as little as 10 days with a complete file. For packages, clean title on every property and organized entity documents are what keep the date.
Speed is often the reason the deal exists. Trust and estate sales, partnership breakups and owners facing a loan maturity all show up in Sacramento, and those sellers usually value certainty of closing. A buyer who can show financing that fits the timeline is often the buyer who wins.
Small buildings and packages usually refinance into DSCR or blanket portfolio loans once rents are stable. A single high-value foothill rental or a large building can move into a jumbo DSCR loan, where larger balances get more review and maximum LTV can be lower.
Some investors sell part of a package to owner-occupants, where Sacramento demand is strong, and keep the rest. Ask about release provisions on the bridge loan if you plan to do that.
Test the exit before you buy. If the refinance only works at a value at the top of recent sales, or with rents above what comparable units lease for today, plan on more equity or a longer hold. A deal that clears 1.0x DSCR on current market rents is a far safer bridge.
Prop 13 resets taxes on purchase, so the bill during the bridge period reflects your price. Documentary transfer taxes, insurance in a tight California market and utilities on vacant units also add up. Budget interest, taxes and insurance for the full expected hold, plus a cushion.
On construction payoffs, confirm that certificates of occupancy are issued and units are leasable before the bridge closes, because the DSCR refinance will depend on signed leases or market rent.
Send the property details, purchase price, renovation budget, current rents and planned exit. The team will size the bridge and show how the refinance or sale repays it. Use the form below or call (877) 298-1001.
Our residential investor bridge program runs from $150,000 to $5M+, and $1M+ loans are reviewed case by case.
Bridge rates start from 7.99%. Pricing depends on leverage, property, experience and exit.
Larger balances usually need a full valuation of the property or each property in a package.
Yes. Paying off a maturing construction loan on finished 1-8 unit rentals, then refinancing into DSCR, is a common use.
Increases on occupied units are capped under AB 1482 and city rules, so plan renovations around natural turnover.
In as little as 10 days with a complete file and clean title.
This program covers 1 to 8 units. Larger buildings are covered on our multifamily page.
Yes, if it is a non-owner-occupied investment property. The exit is usually a sale or a jumbo DSCR refinance, so the rent needs to support the long-term payment.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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