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Lafayette buyers often need bridge financing when selling existing homes while competing for properties in this tight market. Most deals close in 30 days or less here.
Bridge loans let you make non-contingent offers without waiting for your current home to sell. That matters when competing against all-cash buyers in Lafayette neighborhoods.
Bridge Loans in Lafayette
You need significant equity in your existing home—typically 30% minimum. Lenders combine the debt from both properties when calculating your ability to carry two mortgages.
Most bridge lenders require 680+ credit and proof you can handle both mortgage payments for 6-12 months. Some require a signed listing agreement on your current home.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Lafayette.
Lafayette buyers often need bridge financing when selling existing homes while competing for properties in this tight market. Most deals close in 30 days or less here.
Bridge loans let you make non-contingent offers without waiting for your current home to sell. That matters when competing against all-cash buyers in Lafayette neighborhoods.
You need significant equity in your existing home—typically 30% minimum. Lenders combine the debt from both properties when calculating your ability to carry two mortgages.
Bridge loans come from specialty lenders, not traditional banks. Rates run 7-12% with origination fees of 1-2 points—this is expensive short-term money.
We work with lenders who fund in under two weeks. Some offer interest-only payments. Others defer all payments until your existing home sells.
The math only works if you sell your current home quickly. Run worst-case scenarios where your home sits for 90+ days—can you carry both payments that long?
We see Lafayette clients use bridge loans to grab properties before school starts or to avoid temporary housing. The speed advantage is real, but you pay for it.
Hard money loans fund even faster but cost more—expect 10-15% rates. If you need longer than 12 months, a cash-out refi on your current home might work better.
Some borrowers use a HELOC instead, but that still requires dual qualification and takes longer to set up. Bridge loans are purpose-built for this exact situation.
Lafayette properties move fast when priced right. Your bridge loan strategy depends on realistic pricing of your existing home—get comps before committing.
Consider Lafayette's limited inventory when timing your purchase. If you find the right property, bridge financing might be your only path to non-contingent offers.
Most bridge lenders fund in 7-14 days. We've closed Lafayette deals in under a week when paperwork moves quickly.
You'll need to refinance or extend the bridge loan, which costs additional fees. Some lenders offer 6-month extensions at 1-2 points.
Very few lenders go below 25% equity. You need a cushion since you're carrying two properties temporarily.
Depends on the lender. Some require payments on both. Others defer bridge payments until your existing home sells.
Rarely. Bridge loans cost $5,000-$15,000 in Lafayette depending on loan size. Use them for timing and competitive advantage, not cost savings.