The apartment building has empty units, dated interiors and rents well below the street. That gap is the opportunity, and it is also why a permanent lender will not size the loan you need today.
In short: A multifamily bridge loan is short-term, usually interest-only financing for a 5+ unit investment property that funds the purchase and often the renovation while the investor raises occupancy and rents. LendingStreet finances multifamily bridge loans from $150K to $5M+, with up to 85% LTV on qualifying deals and closings in as little as 10 days. Once the property is stabilized, you refinance into long-term multifamily debt sized on the higher NOI. Non-owner-occupied investment property only.
Long-term multifamily loans are sized on in-place net operating income. If occupancy is low or rents are below market, the permanent loan comes in too small to make the purchase work.
A bridge loan is sized on the building’s value and your business plan instead. It gives you time and capital to lift NOI, then the permanent loan is sized on the improved numbers.
Investors often ask which lenders offer the most flexible multifamily bridge terms. Flexibility is not one feature. It is a set of terms that give your business plan room if things take longer than expected.
When you compare options, look at each of these. The most flexible offer is the one that fits your timeline and renovation plan, not always the one with the lowest rate.
| Term | What flexible looks like | Why it matters |
|---|---|---|
| Interest-only payments | Interest-only for the full term | Keeps payments low while NOI is building |
| Rehab funding | Renovation funded through draws as work is done | Less cash needed at closing |
| Interest on rehab funds | Charged only on funds drawn | Lower carrying cost |
| Extensions | Pre-agreed extension options and fees | Protects you if lease-up runs long |
| Prepayment | Little or no penalty after a short period | Lets you refinance as soon as you stabilize |
| Leverage basis | Clearly stated on price, cost or value | Lets you compare offers accurately |
Example only, not a quote. An investor buys a 12-unit building for $1,500,000. Nine units are leased at an average of $1,150 a month, and current NOI is about $55,000, far too low for a permanent loan at that price.
The investor uses an assumed $1,125,000 bridge loan (75% of price) plus a $240,000 renovation budget funded through draws. Over 14 months, all 12 units are renovated and leased at about $1,450. Stabilized NOI rises to roughly $140,000.
| At purchase | After stabilization | |
|---|---|---|
| Occupied units | 9 of 12 | 12 of 12 |
| Average rent | $1,150 | $1,450 |
| Gross rent | $124,200 / yr | $208,800 / yr |
| Operating expenses | About $68,800 | About $68,800 |
| NOI | About $55,000 | About $140,000 |
| Financing | $1,365,000 bridge (incl. rehab) | Refinance into long-term debt |
In the example, assume the permanent loan needs 1.25x coverage and annual payments equal about 8% of the loan. NOI of $140,000 supports roughly $1,400,000, enough to retire the $1,365,000 bridge.
That margin is thin, which is the point of running these numbers before you buy. If rents land lower or expenses run higher, you may need to bring cash to the refinance. Build the plan on conservative rents.
Underwriters focus on the business plan as much as the building. They want a realistic renovation budget, rent comparables that support your target rents and a timeline with some slack.
Your experience matters too. Investors who have renovated and stabilized similar buildings typically see better leverage and pricing than first-time multifamily buyers.
Send the rent roll, trailing 12-month operating statement, purchase contract, renovation budget by unit and common area, and a short summary of your track record.
Our financing team reviews the plan and typically brings back 2–3 options, often within 48 hours. Each one is laid out so you can compare leverage, rehab funding, extensions and cost.
Flexibility shows up in interest-only payments, rehab draws, interest charged only on drawn funds, extension options and light prepayment terms. Compare those terms side by side rather than rate alone, because the best fit depends on your renovation and lease-up timeline.
Terms commonly run 12 to 24 months, often with extension options. Choose a term that leaves room for renovation and lease-up delays.
Yes, many multifamily bridge loans include a renovation budget released through draws as work is completed. How much of the budget is funded depends on the deal and your experience.
A bridge loan is short-term, usually interest-only, and sized on value and your business plan. A permanent loan is long-term and sized on the property’s stabilized net operating income.
Properties with 2 to 4 units fall under our residential programs, including bridge and DSCR. Our multifamily programs, underwritten on NOI, start at 5 units.
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Properties with 5+ units are commercial by definition, so they fall outside Fannie/Freddie residential programs. But at 5-20 units the loan is usually too small for institutional multifamily desks, whose minimums and timelines are built for 50+ unit assets. The result is a financing gap: too big for residential, too small for institutional.
Through DSCR-based and bridge capital sources that underwrite to the property's net operating income rather than agency checklists. Typical structures: purchase or refinance at up to 75% LTV, 5-20 units, $200K-$20M, with bridge-to-perm available for value-add and lease-up plays.
Stabilized small multifamily DSCR loans typically close in 14-21 days. Bridge structures for value-add acquisitions can close in 5-10 days, then refinance into permanent DSCR financing after stabilization.
No. These programs underwrite the property's income (NOI / DSCR), not your tax returns. LLC borrowers are standard, and there is no W2 requirement.
Mixed-use with a residential majority (for example, apartments over retail) can be placed through commercial and mixed-use capital sources through the same LendingStreet application, with custom terms up to $5M+.