Mixed-use bridge loans in Pennsylvania

What Pennsylvania means for a bridge lender

Pennsylvania is a judicial foreclosure state, and Philadelphia and Pittsburgh have their own procedures and timelines. Lenders weigh those when sizing loans.

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.