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Bridge Loans 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.
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.
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.
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.