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Bridge Loans in Hermosa Beach
Hermosa Beach moves fast. Desirable beachfront properties get offers within days, and sellers won't wait for you to close on your current home.
Bridge loans let you buy now and sell later. Most borrowers use them to secure a new Hermosa Beach property while their existing home is listed or in escrow.
These loans typically run 6-12 months. That gives you time to stage, list, and sell your current property without losing the beach house you want.
Most lenders require 20-30% equity in your current property. That equity becomes the collateral that supports your bridge loan.
Credit matters less than assets. I've closed bridge loans for borrowers with 640 scores if they have substantial equity and clear exit strategies.
You'll need to show ability to carry both properties temporarily. Lenders calculate payments on your current mortgage plus the bridge loan.
Bridge loans come from private lenders and specialty finance companies. Traditional banks rarely offer them in competitive markets like Hermosa Beach.
Our network includes 200+ wholesale lenders with bridge programs. Rates typically run 7-12%, which sounds high until you consider the alternative is losing your target property.
Speed matters more than rate here. The best bridge lender is the one who closes before someone else's cash offer gets accepted.
Most Hermosa Beach buyers who need bridge loans are upgrading within the South Bay. They've built equity in Manhattan or Redondo and want beachfront.
The mistake I see is waiting too long to arrange the bridge loan. Get approved before you start shopping so your offer competes with cash.
Have your exit strategy clear. Lenders want to see a listing agreement or proof your current home will sell quickly. Hermosa Beach's strong market helps here.
Hard money loans fund faster but cost more. Bridge loans balance speed with slightly better rates because you have a clear payoff timeline.
Home equity lines sound cheaper but take 30-45 days to fund. In Hermosa Beach, that property is gone by then.
The real comparison is bridge loan cost versus losing a property you want. Most borrowers who need one would pay the 7-12% rate ten times over.
Hermosa Beach inventory stays tight year-round. Properties under $3M get multiple offers, and contingent offers rarely win.
Bridge loans let you make non-contingent offers. That matters when you're competing against tech money and beach home investors.
The South Bay market supports bridge loan strategies. Your existing property will likely sell quickly, minimizing the time you carry dual payments.
Most bridge loans fund in 7-14 days. We've closed some in 5 days when the borrower had equity documentation ready and a strong exit strategy.
Most lenders offer extensions for 3-6 months with additional fees. Having your property listed and priced correctly prevents this situation in Hermosa Beach's strong market.
Yes, bridge loans work for both primary residences and investment properties. Investor loans often have similar terms but may require larger down payments.
Most lenders require appraisals on both your existing property and the new Hermosa Beach purchase. Desktop appraisals can speed up the process.
Most programs accept 640+ credit scores. Strong equity in your current property matters more than perfect credit for bridge loan approval.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.