In San Jose, many large bridge loans start at the end of a build. A small developer finishes a fourplex or a pair of new homes, the construction loan is maturing, and the units are not leased yet. A bridge loan buys the months needed to lease up and move into permanent financing.
In short: LendingStreet offers residential investor bridge loans in the San Jose area from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, interest-only payments and closings in as little as 10 days. Larger balances usually need a full valuation and are reviewed case by case. Common uses are paying off maturing construction loans, buying high-value homes in Willow Glen or the West Valley, and closing quickly on packages of rentals, with exits by sale or into a DSCR or jumbo DSCR loan.
San Jose prices put many ordinary deals over $1M. Large bridge loans here finance new duplexes and fourplexes built under the city's infill and ADU rules, high-value homes in Willow Glen, the Rose Garden, Naglee Park and Almaden Valley, and properties in Los Gatos, Saratoga, Cupertino and Campbell.
Investors also use them to buy two or three rentals at once from a retiring owner, or to close on an estate sale before the long-term financing is arranged.
Competition is a factor in the West Valley and Willow Glen, where well-located homes often draw multiple offers and cash buyers. A bridge loan that can close on a known timeline lets an investor compete on certainty, then arrange longer-term financing or a sale on their own schedule.
Construction loans are written for the build. When a project is finished but not yet leased, a permanent DSCR loan cannot size on rent that does not exist yet. A bridge loan pays off the construction lender, carries interest-only payments while units lease, and then hands off to a DSCR loan sized on the new leases.
That handoff only works if the bridge balance is close to what the property can carry long-term. In San Jose, where new units rent well but values are high, planning the bridge at a balance the DSCR loan can refinance avoids a cash call at the end.
This example is illustrative and not a quote. A builder finishes a fourplex valued at $3,000,000. The construction loan balance is about $1,600,000 and maturing. A bridge loan of $1,650,000, 55% of value, pays it off and covers closing costs.
Estimated monthly interest on the bridge is about $14,438, or about $86,625 over a 6-month lease-up. Once all four units lease at about $4,000 each, a DSCR refinance at the same $1,650,000 balance has estimated principal and interest of about $11,256. With taxes on the new assessment of about $3,000 a month and insurance of $500, the total is about $14,756, for a DSCR of about 1.08x.
| Item | Amount |
|---|---|
| As-completed value | $3,000,000 |
| Construction loan payoff | $1,600,000 |
| Bridge loan (55%) | $1,650,000 |
| Estimated monthly interest | $14,438 |
| Interest over 6 months | $86,625 |
| Rent after lease-up | $16,000 |
| DSCR refinance principal and interest | $11,256 |
| Taxes and insurance (monthly) | $3,500 |
| DSCR at refinance | 1.08x |
Residential investor bridge loans run from $150,000 to $5M+, with larger balances reviewed case by case. Payments are interest-only, terms are short, and rates start from 7.99%. Larger balances usually need a full appraisal, and new construction may need a certificate of occupancy and final inspections before closing.
Lenders generally size the loan on the lower of purchase price and appraised value for a purchase, and on appraised value for a refinance of a finished project.
Appraisers valuing new small multifamily in San Jose will look at rent comparables as well as sales, so bring a rent survey for similar new units. For high-value homes in Los Gatos or Saratoga, unique lots and few recent sales can make valuation slower, so order early.
California reassesses new construction when it is completed, so a finished fourplex carries a higher tax bill than the lot did during the build. Budget the higher figure into both the bridge carry and the DSCR refinance.
On purchases, Santa Clara County's documentary transfer tax applies, and San Jose's city transfer tax applies to higher-priced sales starting around $2 million. Check who pays under your contract.
New small multifamily in San Jose often refinances into a DSCR loan at moderate leverage once leased. High-value single-family homes are harder, because rent rarely covers a long-term loan at normal leverage, so their usual exits are a sale or a jumbo DSCR loan at lower leverage. See our bridge-to-DSCR guide and San Jose jumbo DSCR page.
If leasing takes longer than planned, talk to us before maturity. Extension options, where available, are easier to arrange early, and a partly leased building may still support a refinance at a lower balance.
On a large balance, underwriters look at your track record with similar projects, cash reserves to carry interest and taxes if leasing or a sale takes longer, and the realism of the rent or sale assumptions. For a construction payoff, they also want the final permits, certificate of occupancy and a list of any open items.
Send the address, the construction loan payoff or purchase contract, the as-completed or as-is value support, and your lease-up or sale plan. Call (877) 298-1001 or use the form below and we will tell you quickly whether the deal fits.
Yes, on a finished 1-8 unit residential project. The bridge carries the property while units lease, then a DSCR loan can take over.
Usually, yes. Larger balances generally need a full valuation.
In as little as 10 days when title, valuation and documents are ready.
Rates start from 7.99%. Terms depend on leverage, experience and the exit plan.
The program runs to $5M+, with larger balances reviewed case by case.
Yes, for high-value rentals that are leased. Leverage is often lower on large balances, varies by program.
New construction is reassessed when complete in California, so budget for a higher tax bill in both the bridge and refinance. A supplemental tax bill can also arrive months after completion, so keep reserves for it.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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