The quick read: Four lender types write multifamily bridge loans in Savannah: private debt funds, bank balance-sheet lenders, agency-affiliated bridge-to-agency programs, and private or hard money bridge lenders. They differ on leverage basis, spread over SOFR, extension tests and recourse. The published, dated grid cited here is Freddie Mac's Optigo Value-Add term sheet (04/25): an 85% as-is and 75% as-stabilized baseline loan-to-value, three years plus a 12-month borrower extension and a further 12 months at Freddie Mac's discretion, and non-recourse. The Savannah-specific variable is water. In a Special Flood Hazard Area every federally regulated lender must require flood insurance, the National Flood Insurance Program caps building coverage for a five-plus-unit residential building at $500,000, and the City of Savannah's 50% rule adds up renovation costs on older buildings over five years. Those three rules decide how big your renovation budget can be and what your stabilized expenses look like when the takeout lender re-underwrites.
Which lenders write multifamily bridge loans in Savannah?
Four lender types write multifamily bridge loans on Savannah and Chatham County apartments: private debt funds, bank balance-sheet lenders, agency-affiliated bridge-to-agency programs, and private or hard money bridge lenders. Each sizes the same property differently, and in Savannah the flood zone of every building belongs on page one of the package.
Debt funds lend against the business plan: purchase plus renovation, funded in draws, sized to the value the property should reach after the units are turned. Bank balance-sheet lenders lend against what the property earns today, usually with recourse, and price best for sponsors who bring deposits. Agency-affiliated bridge-to-agency programs fund light renovation inside a set per-unit budget with a planned exit into a permanent agency loan. Private and hard money bridge lenders take the deals the others pass on, such as a short contract deadline, a heavily vacant property or a first-time sponsor.
For how the product works in general, see our guide to multifamily bridge loans. For the same lender-type comparison in Atlanta, see who lends on a multifamily bridge loan in Atlanta.
How do the four lender types compare on leverage, rate, extensions and recourse?
The four lender types compare most clearly on four terms: the value the loan is sized against, the spread charged over the SOFR index, the tests you must pass to extend, and whether the loan carries recourse. Only the agency row comes from a published, dated term sheet; the other rows describe how each lender type sets the term.
Lender-type comparison for a Savannah value-add apartment bridge loan (agency row: Freddie Mac Optigo Value-Add term sheet dated 04/25; other rows: set lender by lender, no public dated grid):
| Lender type | Leverage basis | Rate basis | Extension tests | Recourse |
|---|---|---|---|---|
| Private debt fund | Purchase plus renovation cost, checked against as-stabilized value | Floating spread over SOFR, quoted per deal | Written into the loan agreement; often tied to renovation progress and coverage | Usually non-recourse with carve-out guarantees; confirm per term sheet |
| Bank balance-sheet bridge | As-is value and in-place coverage | Floating over SOFR or prime, often with deposit requirements | Covenants set by the bank's credit committee | Usually full or partial recourse |
| Agency-affiliated bridge-to-agency (Freddie Mac Value-Add) | 85% as-is and 75% as-stabilized baseline LTV, with 1.15x and 1.30x minimum DCR, subject to market adjustment | Floating-rate, full-term interest-only, no rate cap required | One 12-month borrower extension for a 0.5% fee with no event of default; a further 12 months at Freddie Mac's discretion for a 1% fee | Non-recourse, per Freddie Mac |
| Private or hard money bridge | As-is value, usually at a lower advance | Higher coupon priced for asset risk | Negotiated, often a fee per extension | Often recourse |
Agency renovation budget: $10,000 to $25,000 per unit, starting within 90 days of origination and finished within 33 months, per Freddie Mac's Value-Add term sheet.
Agency cash equity: 15% generally required.
Agency escrows: real estate taxes, insurance and replacement reserves.
Agency maturity: Freddie Mac states it will re-underwrite the loan according to then-current credit policy parameters, so the takeout is a fresh underwriting of your stabilized income and expenses, flood premium included.
Why does flood zone status change a Savannah bridge loan?
Flood zone status changes a Savannah bridge loan because a building inside a Special Flood Hazard Area must carry flood insurance before a federally regulated lender can close, the federal program caps what it will insure per building, and the premium becomes a permanent expense line the takeout lender underwrites. Check the map for every building, not just the address.
FEMA states that "Congress mandates that federally regulated or insured lenders require flood insurance for all buildings located in a Special Flood Hazard Area (SFHA) with a federally backed loan." FEMA's glossary describes the SFHA as the area where NFIP floodplain management regulations must be enforced and "where the mandatory purchase of flood insurance applies." For FDIC-supervised banks, the rule at 12 CFR 339.3 sets the floor: the amount of insurance "must be at least equal to the lesser of the outstanding principal balance of the designated loan or the maximum limit of coverage available for the particular type of property."
That maximum is low for apartments. FEMA's glossary defines an Other Residential Building as one "designed for use as a residential space for 5 or more families," and FEMA's simple guide for other residential buildings lists the Regular Program maximums as follows.
NFIP building coverage, other residential: $500,000 per building.
NFIP contents coverage, other residential: $100,000.
A garden-style complex is usually several buildings, and 44 CFR 61.6 applies the NFIP building-coverage limit to each building, so check the $500,000 cap against each building's replacement cost. Any replacement-cost coverage a lender or your own risk plan wants above $500,000 a building has to come from a private excess flood policy, priced separately. Bring quotes for both layers before you ask for term sheets, so every lender underwrites the premium from a quote rather than an estimate.
The City of Savannah also notes that its floodplain management plans, adopted September 9, 2021, "help reduce flood insurance premiums by 25% for property owners participating in the National Flood Insurance Program." That discount applies to NFIP policies; ask your agent whether it applies to the policy you are pricing.
How can Savannah's 50% rule cap a value-add renovation budget?
Savannah's 50% rule can cap a value-add renovation budget because, on older buildings below the required flood elevation, renovation and repair costs added up over five years cannot exceed half the structure's market value without forcing the building into full compliance with the city's flood ordinance. A bridge business plan has to fit under that line, building by building.
The city states the rule this way: if a pre-FIRM structure, built before May 21, 1971, "is below the Base Flood Elevation plus required freeboard and costs of repairs or renovations, cumulative over a five year period, exceeds 50% of the current Fair Market Value of the structure only, then the structure must be brought into the compliance with the City's current Flood Damage Protection Ordinance." The same city page notes that pre-FIRM dates change for areas annexed later, so confirm the date for each parcel. FEMA's national definition of substantial improvement uses the same 50 percent of market value threshold, "or a lower threshold if adopted and enforced by the community."
The elevation target also rose. On October 24, 2024, the city adopted two feet of freeboard above the Base Flood Elevation for new and substantially improved structures in the 100-year floodplain, effective January 1, 2025; it had required one foot since September 2008.
Three consequences for a bridge request:
- The value is the structure only. Land is excluded, so a renovation that looks modest against the purchase price can be large against the building value.
- The clock is five years. Ask the city how it counts permits pulled before your purchase, and get the permit history for each building into your due diligence.
- Scope is per building. Roofs, HVAC and siding count alongside unit interiors. Freddie Mac's Value-Add term sheet says 50% of the budget should be spent on unit interiors, so the exterior half needs the same per-building check.
What lenders want to see: a per-building budget, the structure value each budget is measured against, and the elevation of each building relative to Base Flood Elevation plus freeboard.
What does an illustrative Savannah bridge deal look like with flood costs in the numbers?
An illustrative Savannah bridge deal shows how the flood rules move the numbers before any lender quotes: the 50% rule limits the per-building budget, and the flood premium lowers the as-stabilized income the loan is sized on. Every figure below is Illustrative (our arithmetic) except the SOFR level and the agency limits, which are cited.
Illustrative property: 96 units in eight 12-unit garden buildings built in 1968, some in a Special Flood Hazard Area and below Base Flood Elevation plus freeboard.
Illustrative purchase: $9,600,000, or $100,000 per unit.
Illustrative renovation budget: $18,000 per unit, or $216,000 per building (our arithmetic: 12 units x $18,000), inside Freddie Mac's $10,000 to $25,000 per-unit band.
Illustrative structure value: $900,000 per building, excluding land. Illustrative (our arithmetic): the renovation budget is 24% of that value.
Illustrative trap (our arithmetic): add a $150,000 roof and siding package and a prior owner's $100,000 repair permit from three years earlier, and the five-year total reaches $466,000, or about 52% of structure value, past the 50% line.
Floating-rate index: SOFR was 3.87% on 2026-10-01, per the Federal Reserve Bank of St. Louis FRED series.
Illustrative coupon (our arithmetic): SOFR plus an illustrative 3.40% spread, or 7.27%.
Illustrative loan (our arithmetic): 85% of purchase, or $8,160,000, the agency as-is baseline before coverage and market adjustments.
Illustrative interest-only debt service (our arithmetic): $593,232 a year at 7.27%.
Now the as-stabilized test, Illustrative (our arithmetic). Freddie Mac sizes the Value-Add loan on both an as-is and an as-stabilized pro forma; at its 75% as-stabilized baseline, an $8,160,000 loan needs an as-stabilized value of $10,880,000. If the appraiser capitalizes income at an illustrative 6.0% rate, every illustrative $10,000 of annual flood premium, NFIP and private excess combined, removes about $166,667 of value. Price the premium for the flood-zone buildings before you bid, and ask whether the 25% city discount applies to your policy.
When is a bridge loan the wrong tool for a Savannah apartment deal?
A bridge loan is the wrong tool for a Savannah apartment deal when the property already earns its debt service or when the plan is ground-up construction. In those cases a long-term rental loan or a construction loan fits better, and a stabilized building should be priced against permanent debt before you pay bridge carry.
If the building is stabilized and you want long-term debt, look at permanent and DSCR options before paying bridge carry; our guide to bridge loan rates and carry cost shows what a floating-rate loan costs while you wait. If the deal is a short-fuse purchase, the private or hard money bridge row in the table above is usually the closer fit. For local market context, see the Savannah market page.
What should a Savannah apartment buyer send to get bridge term sheets?
A Savannah apartment buyer should send a rent roll, a trailing 12-month statement, a per-building renovation budget, the flood zone and elevation of each building, and flood insurance quotes, because those documents let every lender type size the as-is and as-stabilized case on the first read. YieldStack is a commercial mortgage brokerage, not a lender.
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- Rent roll: unit by unit, with lease dates, in-place rent and concessions.
- Trailing 12-month operating statement: with the current insurance bill broken out.
- Renovation budget: per building, with interior and exterior scope separated and the structure value beside each.
- Flood file: flood zone for each building, any elevation certificates, and the five-year permit history.
- Insurance quotes: NFIP and private excess flood, plus wind and property.
Get competing bridge terms on your Savannah apartment deal
The bottom line
Debt funds, bank balance-sheet lenders, agency bridge-to-agency programs and private bridge lenders all lend on Savannah apartments, but they size, price and extend differently. In Savannah the deciding variable is flood: mandatory insurance in the SFHA for federally regulated lenders, a $500,000 NFIP building cap, and a cumulative 50% rule on older buildings. Budget per building.