Question 1

Can I get a bridge loan if my current home isn't listed yet?

Accepted Answer

Most lenders require your property actively listed with a realistic price before funding. Some allow pre-approval if listing happens within 10 days of closing your new purchase.

Question 2

What happens if my home doesn't sell before the bridge loan matures?

Accepted Answer

You must pay off the bridge loan through refinance or other means. Most lenders offer 3-6 month extensions at higher rates, but this isn't guaranteed and costs add up fast.

Question 3

Do bridge loans require property insurance on both homes?

Accepted Answer

Yes, both properties need full hazard insurance during the bridge period. Lenders require proof of coverage before funding and track policies through loan term.

Question 4

Can I use bridge loan funds for down payment only?

Accepted Answer

Some lenders structure bridge loans as pure equity extraction for down payment. Others require wrapping both properties into one combined loan secured by your current home's equity.

Question 5

How fast can bridge loans close in Brentwood?

Accepted Answer

Portfolio lenders close straightforward deals in 21-30 days. National lenders typically need 30-45 days. Speed depends on appraisal turnaround and how quickly you provide documentation.

Question 6

Are bridge loan interest payments tax deductible?

Accepted Answer

Consult your tax advisor, but bridge loan interest may qualify as mortgage interest deduction if secured by real property. Documentation requirements changed under recent tax law.

Bridge Loans in Brentwood: Move Fast in East Bay's Growth Corridor