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Claremont's tight inventory creates timing problems for move-up buyers. You find the right house but yours hasn't sold yet.
Bridge loans solve this gap with 6-12 month terms. You close on the new property while your current home sits on market.
Most Claremont borrowers use bridges to avoid contingent offers. Sellers prefer clean contracts, especially in competitive neighborhoods.
These loans work when you have equity and good credit. Rates run 2-4 points above conventional, but speed trumps cost in hot markets.
Bridge Loans in Claremont
You need 20-30% equity in your current property. Lenders advance against that equity to fund your down payment.
Credit minimums vary by lender but expect 660-700 range. Income matters less than equity position and exit strategy.
Most bridge lenders want proof your home is listed or will be soon. They need to see a realistic sale timeline and price.
You'll carry both mortgages during the bridge period. Debt-to-income ratios can stretch higher since the loan is temporary.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Claremont.
Claremont's tight inventory creates timing problems for move-up buyers. You find the right house but yours hasn't sold yet.
Bridge loans solve this gap with 6-12 month terms. You close on the new property while your current home sits on market.
Most Claremont borrowers use bridges to avoid contingent offers. Sellers prefer clean contracts, especially in competitive neighborhoods.
Bridge loans come from private lenders and specialty finance companies. Traditional banks rarely touch this product anymore.
We work with lenders who close in 7-14 days when needed. Speed costs money but saves deals in competitive situations.
Each lender has different equity requirements and rate structures. Some charge monthly interest, others defer payments until sale.
Origination fees run 1-3% of loan amount. Factor these into your math when comparing bridge costs to other options.
Bridge loans make sense when missing a purchase costs more than the loan fees. Run the numbers before assuming it's too expensive.
I see borrowers skip bridges then lose dream homes to cash offers. The cost of the right house in Claremont exceeds most bridge fees.
Have a realistic exit strategy before applying. Lenders want to see your home priced correctly and actively marketed.
Consider hard money if your equity position is weak. It costs more but approves with less scrutiny of your financial profile.
Hard money loans look similar but serve different purposes. Hard money funds rehabs or investor purchases, bridges handle personal residence transitions.
Construction loans work when you're building, not buying existing. Bridge loans close faster and require less documentation.
Interest-only loans reduce payment burden during the bridge period. Some lenders offer this feature, others require full principal plus interest.
Investor loans assume rental income as qualification. Bridges rely on equity alone since the exit is your home sale, not tenant cash flow.
Claremont's village atmosphere attracts buyers who want specific neighborhoods. Bridge loans let you compete without contingencies in tight pockets.
Properties near the colleges move fast when priced right. Bridge financing gives you cash buyer speed in these competitive areas.
Los Angeles County transfer taxes add to closing costs on both transactions. Factor these into your total bridge loan expense calculation.
Some Claremont sellers won't consider contingent offers at all. Bridge loans eliminate that obstacle and strengthen your negotiating position.
Expect 7-10% interest plus 1-3% origination fees. Total cost depends on how long your current home takes to sell.
Most lenders offer 6-month extensions at additional cost. Some require rate adjustments or principal paydown to extend terms.
Some lenders require an active listing, others just need a realistic sale plan. Approval odds improve when the home is already marketed.
Yes, but rates run higher for non-owner occupied. Lenders focus on equity position and your overall real estate portfolio strength.
We've closed deals in 7-10 days with private lenders. Speed depends on how quickly you provide documentation and order appraisals.