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La Cañada Flintridge homes sell fast when priced right, but most sellers need to close on their next property before their current one sells. Bridge financing solves this timing problem.
Properties in desirable school districts often attract competing offers with short close windows. A bridge loan lets you write a non-contingent offer while your existing home is still listed.
Bridge Loans in La Canada Flintridge
Lenders approve bridge loans based on your existing home's equity and the new property's value. You need at least 25% equity in your current home and strong credit above 680.
Most lenders require proof your existing home is actively listed with a realistic price. Some allow unlisted properties if you can show 40-50% combined equity across both homes.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in La Canada Flintridge.
La Cañada Flintridge homes sell fast when priced right, but most sellers need to close on their next property before their current one sells. Bridge financing solves this timing problem.
Properties in desirable school districts often attract competing offers with short close windows. A bridge loan lets you write a non-contingent offer while your existing home is still listed.
Lenders approve bridge loans based on your existing home's equity and the new property's value. You need at least 25% equity in your current home and strong credit above 680.
Bridge loans come from specialty lenders, not traditional banks. Rates run 2-4 points above conventional mortgages because these are short-term, higher-risk products.
Most bridge loans last 6-12 months with interest-only payments. Some lenders defer all payments until your existing home sells, but that costs more in rate.
Bridge loans make sense when you found the right property but can't wait months to sell. They rarely make sense if you're just testing the market or unsure about your next move.
I've seen borrowers use bridge loans successfully in neighborhoods like La Cañada Flintridge where inventory moves quickly. The cost matters less when you're capturing appreciation in a rising market.
Hard money loans offer similar speed but use the new property as collateral instead of combining both properties. That works better if you lack equity or your current home isn't listed yet.
Home equity lines cost less but won't fund a full purchase. Construction loans work for teardowns but require different qualifications and timelines.
La Cañada Flintridge properties in top school zones move faster than outlying areas. Your bridge loan timeline should account for realistic days on market in your specific neighborhood.
Lenders get nervous about bridge loans on unique properties that might sit longer. Standard floor plans in established areas qualify more easily than custom estates with narrow buyer pools.
Most lenders offer extensions for 3-6 months at higher rates. You'll need proof the property is still actively marketed. Some require a price reduction to extend.
A few lenders allow unlisted properties if you have 40%+ equity and sign a listing agreement. Expect higher rates and stricter terms than standard bridge loans.
You pay your existing mortgage plus interest on the bridge loan. Some lenders defer bridge payments until your home sells but charge a higher rate for that feature.
Most bridge lenders fund in 10-15 days with complete documentation. Rushed deals can close in 7 days but cost more in rate and fees.
Most lenders want 680 minimum. Higher scores unlock better rates. Below 680, you're looking at hard money instead of true bridge financing.