Mixed-use bridge loans in Louisiana

What Louisiana means for a bridge lender

Louisiana follows a civil-law system. A mortgage that includes a confession of judgment lets a lender use executory process, which can move faster than an ordinary court case. Louisiana is also a non-disclosure state, and flood zone and insurance are major underwriting items.

Foreclosure runs through the courts, which usually takes longer and costs more than a power-of-sale process. Lenders that size loans on the property, not the borrower, price that time in: some reduce leverage, some ask for larger interest reserves, and some only lend in judicial states on stronger assets.

Mixed-use specifics

Confirm the mixed use is permitted under current zoning and that the certificate of occupancy covers both uses; some cities also regulate residential rents or require registration of rental units.

How mixed-use bridge loans are sized

Many asset-based bridge lenders lend around 65–75% of as-is value on mixed-use property that is mostly residential, and less when commercial space makes up a larger share or sits vacant. When there is a plan to renovate units or build out commercial space for a tenant, some lenders fund it on a loan-to-cost basis from a holdback. Older buildings with code issues or mostly vacant ground floors usually see lower leverage.

What lenders will ask for

• Residential rent roll and commercial rent roll
• Commercial leases, amendments and any estoppel certificates
• Trailing 12-month operating statement
• Purchase contract or current loan payoff statement
• Renovation or tenant improvement budget
• Leasing plan and broker opinion of commercial rents for vacant space

Full list and timeline on the mixed-use bridge loans page.