PA · Philadelphia
Bridge, Flip & Construction
Loans in Philadelphia, PA
Bridge, fix & flip, construction, renovation and DSCR loans for residential investment property in Philadelphia, $1M to $5M, term sheet in 24 to 48 hours. For US investors and foreign nationals on the same terms.
Passy Capital finances real estate investors who buy, renovate and build residential investment property in Philadelphia and its suburbs: bridge loans, fix & flip loans and ground-up construction loans for infill townhomes, spec homes and small multifamily, plus renovation and DSCR financing for the hold. Loans run from $1M to $5M, with a term sheet in 24-48 hours and closing in about two weeks on a clean file.
Philadelphia is a rowhouse city: investors renovate and convert rowhouses, reposition small apartment buildings and build infill on narrow lots. Philadelphia was among the five US metros with more than 1 million people with the widest typical gross flipping margins in ATTOM's Q1 and Q2 2026 reports (62% and 62.8%, measured before renovation and carrying costs). We size flips on cost and after-repair value, builds on cost, and rentals on value and rent.
Investors based outside the US borrow on the same terms as local operators. The loan is made to your US LLC and underwritten on the property, with no US credit history and no Social Security number required. Business-purpose lending only, on non-owner-occupied property.
Philadelphia Market Highlights
Flip Margins
Philadelphia was top five among large US metros for typical gross flipping margin in ATTOM's Q1 and Q2 2026 reports.
Transfer Tax
4.578% combined (1% state, 3.578% city since July 1, 2025), which a flip budget carries on both ends.
Declining Abatement
New residential construction abatement steps down from 100% to 10% over ten years.
Rental Licensing
One rental license per unit, plus lead-safe or lead-free certification for pre-1978 buildings.
Judicial Foreclosure
Pennsylvania foreclosures go through the court of common pleas and end in a sheriff's sale.
Same Terms From Abroad
Non-US investors borrow through a US LLC with no US credit history and no foreign-national premium.
Key Submarkets
Fishtown
Kensington
Northern Liberties
Brewerytown
Francisville
Point Breeze
Graduate Hospital
East Passyunk
Manayunk
Roxborough
Germantown
Port Richmond
Property Types We Finance
Single-Family
2-4 Units
Condos & Townhomes
Small Multifamily (5-9)
Infill Construction
Spec Homes
SFR Portfolios
Renovation Projects
Loan Programs
Bridge Loans
Buy, refinance or cash out an investment property, closing in about two weeks.
Construction
Ground-up spec homes and build-to-rent, with draws tied to milestones.
Renovation / Rehab
Rehab financing on 1-4 unit and small multifamily, drawn against completed work.
Fix & Flip
Purchase and rehab in one loan for 1-4 unit flips, closing in about two weeks.
DSCR / Rental
Long-term rental financing based on property cash flow.
How we finance Philadelphia deals
- Rowhouse renovations and conversions. Purchase and renovation in one loan, up to 90% of cost, for rowhouse gut renovations, conversions to two to four units and small apartment buildings. Philadelphia's combined realty transfer tax is 4.578%, and a flip typically bears part of it on the purchase and again on the sale, so both go into the budget.
- New construction and the declining abatement. Ground-up construction up to 85% of cost for infill townhomes, spec homes and small multifamily up to 9 units. New residential construction can receive a 10-year abatement on the improvements, but it now declines from 100% in year one to 10% in year ten, so we underwrite a hold on the tax bill year by year.
- Rental license and lead certification before the refinance. Each rental unit needs its own Philadelphia rental license, and properties built before March 1978 need a lead-safe or lead-free certificate for each unit when a lease is signed. Once those are in place and the units are leased, a DSCR loan up to 80% of value retires the bridge or construction loan.
See all Pennsylvania markets on our Pennsylvania page, or what we fund.
Investing in Philadelphia from outside the US
If you are buying in Philadelphia from outside the United States, financing is usually where the process stalls: no Social Security number, no US credit history, and no retail bank willing to underwrite a foreigner. We lend to your US LLC instead, underwrite the property rather than a US profile you have no way to build, and charge no foreign-national premium for it.
Frequently asked questions
What do you finance in Philadelphia?
Bridge loans, fix & flip loans and ground-up construction loans for infill townhomes, spec homes and small multifamily, plus renovation and DSCR loans. Loans run from $1M to $5M on single-family, 2-4 units, condos and townhomes, small multifamily up to 9 units and SFR portfolios.
How much of a Philadelphia rowhouse renovation can you finance?
Up to 90% of cost on fix & flip and renovation, with renovation funds released in draws as work is completed and inspected. Ground-up construction goes up to 85% of cost, and bridge and DSCR loans up to 80% of value.
Can a foreign national borrow for a Philadelphia property?
Yes. The loan is made to your US LLC and underwritten on the property rather than on a US credit history, so a non-resident borrows on the same terms as a US investor, with no Social Security number required.
What does a Philadelphia loan cost?
The fee is 1-2% of the loan, paid at closing, with no upfront fees. The term sheet within 24-48 hours sets out the rate and terms for your specific deal.
Learn More
How a Construction Loan Draw Schedule Works
How draws are requested, inspected and released during a renovation or infill build.
Can I Refinance a Bridge Loan Into a DSCR Loan?
How a finished renovation or build moves from short-term financing to a long-term rental loan.
How to Set Up a US LLC as a Foreign Investor
The entity that holds the property and borrows, and how a non-resident forms one.
Other Cities in Pennsylvania
We also finance investors across other Pennsylvania markets.
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