Bridge vs. DSCR Loans for Seattle Investors: How to Choose in 2025
Based in Des Moines, WA and serving Seattle & select states — Puget Sound Funding Solutions helps investors choose the right structure for speed, flexibility, and strong exits.
Quick Definitions
- Bridge Loan: Short-term, interest-only financing designed for speed—acquisitions, repositioning, seasoning, or to hold while improvements are completed.
- DSCR Loan: Longer-term rental financing underwritten primarily on Debt Service Coverage Ratio (property cash flow), not just personal income.
When a Bridge Loan Fits Best
- Fast close needed: Competitive Seattle offers, auction purchases, or off-market deals.
- Property needs work: Light-to-heavy rehab, missing permits, or incomplete rent rolls.
- Timing gap: You plan to refinance into DSCR or sell after stabilization.
Bridge loans shine when the clock matters more than the rate. Terms are typically 6–18 months, interest-only, and draw-friendly if rehab is involved. See our Bridge Loan overview.
When a DSCR Loan Fits Best
- Stabilized rental: Cash flow covers monthly debt service (target DSCR ≥ 1.10–1.25+; program dependent).
- Hold strategy: You want predictable payments and longer amortization.
- Lower monthly cost: Compared to interest-only bridge once stabilized.
DSCR works best for properties with documented income and realistic expenses. It’s a common take-out from bridge. Explore DSCR rental loans.
Seattle Examples
- Ballard SFR flip: 30-day close, outdated kitchen, uneven rent history. Bridge to acquire + rehab; sell or refi to DSCR after stabilization.
- Beacon Hill duplex buy-and-hold: Stabilized tenants, clean leases, strong NOI. DSCR for longer-term hold.
- South Seattle small MF reposition: Vacancies and CapEx needed. Bridge during improvements; DSCR take-out after leases stabilize.
Costs, Docs & Timing
| Factor | Bridge | DSCR |
|---|---|---|
| Speed to Close | Fast (deal- & doc-dependent) | Moderate (stabilization & cash-flow proofs) |
| Rate/Payment | Higher, interest-only | Lower with amortization |
| Use Case | Acquire, improve, season | Hold, lock terms long-run |
| Docs | Asset, budget, title, experience | Leases, market rents, taxes/insurance, DSCR |
How to Decide (Checklist)
- Timeline: Need to close in <30 days? Start with Bridge.
- Condition: If repairs or lease-up required, Bridge first; plan DSCR take-out.
- Cash Flow: If NOI clearly supports debt service today, evaluate DSCR.
- Exit Plan: Sale, DSCR refi, or hold? Choose a path that matches your endgame.
Pro Tip: Plan the Take-Out on Day One
Your exit dictates structure. If DSCR is the target, estimate DSCR up front (NOI ÷ monthly debt service). Use our Quick Scenario Estimator and talk through rent assumptions, expenses, and reserves.
Ready to Compare Options?
Tell us about your next acquisition or refi and we’ll outline a clear side-by-side view for Bridge vs. DSCR, including timelines and likely documentation.
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Disclaimer: Program availability and terms vary by property, location, and underwriting. This post is informational only and not a commitment to lend.
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