Short-term real estate loans in Philadelphia provide fast, flexible financing for property investors operating in one of the nation's most competitive housing markets. With median days on market at just 56 and more than 60% of homes selling within 30 days, investors need short-term loan options that move at the speed of opportunity.
Philadelphia ranks as the fifth most competitive metro for buyers in 2025. In such a market, securing funding quickly can be the difference between landing the deal or losing out to a cash buyer. Whether you're renovating a property in West Philadelphia, managing a short-term rental in Fishtown, or building from the ground up, the right financing structure plays a critical role.
This guide compares the most common short-term loans used by Philadelphia real estate investors: fix and flip loans, bridge loans, DSCR loans, and new construction loans.
Philadelphia’s housing market is shaped by strong fundamentals from sectors like healthcare, life sciences, education, and technology. These factors continue to support steady property demand and investor interest.
Short-term real estate loans typically range from 6 to 18 months, though 12- to 18-month terms are the most common. These products are designed to match the pace of real estate investing: quick acquisitions, rapid renovations, and timely exits. They offer faster approvals and fewer documentation requirements than traditional mortgages.
Key features include:
Fix-and-flip loans are short-term financing tools used to acquire and renovate properties for resale. These loans help investors unlock value through strategic improvements.
Bridge loans help investors acquire properties quickly while waiting on a long-term exit, such as a sale or permanent financing. These loans are ideal for Philadelphia’s fast-moving transactions.
Many city properties, especially those in historic neighborhoods or with unique structures, may be ineligible for conventional financing. Bridge loans allow investors to act fast and resolve complexities later.
Debt Service Coverage Ratio (DSCR) loans use projected or current rental income to qualify, instead of personal income or W-2s. These are ideal for investors focused on long-term rental property financing.
Philadelphia’s rental market remains strong in 2025, supported by university populations, young professionals, and relocating workers. Areas like West Philadelphia and Center City see consistent demand. DSCR loan eligibility is typically based on a ratio of 1.0 or higher, with premium terms available for DSCR ratios of 1.25 and above.
New construction loans offer phased funding to build properties from the ground up. These are used for vacant lots, infill development, or teardown projects.
Philadelphia zoning and permitting requirements often impact timelines. For single-family homes, permits may need 15 business days to process. Historic districts may require additional review. Weather and seasonal slowdowns can also affect project flow.
|
Financing Type |
Term Length |
Use Case |
Max LTV / LTC |
Key Benefit |
|
Fix and Flip |
6–18 months |
Renovation projects |
Up to 70% ARV / up to 100% LTC |
No monthly payments |
|
Bridge |
6–24 months |
Time-sensitive purchases |
Up to 80% LTV |
Fast closings |
|
DSCR |
30-year fixed |
Rental properties |
Up to 80% LTV |
No income verification |
|
Construction |
6–18 months |
Ground-up builds |
Up to 70% ARV / up to 100% LTC |
Draw-based funding |
If you're flipping, consider using a fix-and-flip loan. If you’re holding for rental income, a DSCR loan may be the better fit.
Short-term real estate loans like bridge, construction, or fix and flip loans support quick deals. DSCR loans provide longer-term rental property financing.
Bridge and fix-and-flip loans can close in 7–14 days. DSCR and new construction loans often require 2–3 weeks because of appraisals or permitting.
Matching the right loan to your project can reduce delays, improve profitability, and simplify execution. Investors in West Philadelphia may benefit from DSCR loans to support rental demand, while those flipping in Fishtown can take advantage of shorter-term options with fast draw schedules.
We provide short-term real estate loans in Philadelphia designed to help you act fast and scale strategically.
Fix-and-flip loans include renovation financing and longer timelines. Bridge loans, on the other hand, focus on speed and acquisition, but may not include renovation funds.
Yes. DSCR loans are based on property rental income. Most borrowers do not need to show W-2s, pay stubs, or tax returns.
Bridge and fix and flip loans can close in 7–14 days. DSCR and new construction loans generally take 2–3 weeks because of inspections or planning requirements.
We require three months of interest if you repay the loan within the first three months. After that, there’s no prepayment penalty.
Yes. All four loan types can be used for 2–4 unit investment properties. Larger buildings may require commercial financing.
Philadelphia’s property market rewards investors who act quickly with the right strategy and the right funding. Whether you’re flipping a rowhome, refinancing rental property, or breaking ground on a new build, our short-term real estate loans in Philadelphia are designed to help you move fast, stay flexible, and grow your portfolio.
Looking for more insights? Read another Philadelphia real estate investment blog or visit our Philadelphia homepage to learn more.