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Lakewood's competitive real estate market often requires quick action when opportunities arise. Bridge loans provide the speed and flexibility needed when you've found your next property but haven't sold your current one.
These short-term loans typically fund within 1-2 weeks, allowing Lakewood buyers to make non-contingent offers that stand out in multiple-offer situations. The financing bridges your equity from one property to the next without waiting for traditional sale timelines.
Los Angeles County properties often sell faster with cash-equivalent offers. Bridge financing turns your existing home equity into immediate purchasing power for your next Lakewood property.
Bridge Loans in Lakewood
Bridge loans focus on your property equity rather than traditional income verification. Most lenders require 25-35% equity in your current property and will lend based on the combined value of both properties.
Credit requirements are typically more flexible than conventional loans, with many lenders accepting scores as low as 600-620. The emphasis shifts to your real estate holdings and exit strategy rather than debt-to-income ratios.
You'll need a clear plan for repayment, usually the sale of your existing property within 6-12 months. Some lenders also accept refinancing into permanent financing as an exit strategy once your current home sells.
Bridge loan lenders in the Los Angeles County market range from private money sources to specialized non-QM lenders. Interest rates typically run 7-12% depending on loan-to-value ratio, credit profile, and property type.
Most programs charge points ranging from 1-3% of the loan amount, plus standard closing costs. The key is comparing total cost of funds including interest, points, and any prepayment penalties against the value of securing your next property quickly.
Working with a broker provides access to multiple bridge lenders simultaneously. This ensures you get competitive terms and find programs that match your specific timeline and property situation in Lakewood.
The most successful bridge loan scenarios involve properties that will sell within 90-120 days. Overpricing your current property or unrealistic sale timelines create unnecessary carrying costs that erode the benefits of bridge financing.
Many Lakewood buyers structure bridge loans to cover both their down payment and several months of overlapping payments. This buffer prevents stress if your existing property takes longer to sell than anticipated.
Consider timing your bridge loan to allow for light renovations on your current property before listing. The improvements often generate higher sale prices that offset the bridge loan costs while you're already settled in your new home.
Bridge loans differ from hard money loans in purpose and typical duration. While hard money focuses on fix-and-flip investors, bridge loans serve homeowners transitioning between primary residences with existing equity.
Compared to home equity lines of credit, bridge loans close faster and don't require monthly payments during the initial period. Most bridge loans are interest-only or deferred payment, keeping costs minimal until your property sells.
Construction loans provide long-term financing for building projects, while bridge loans solve immediate timing gaps. For Lakewood buyers needing quick access to equity without waiting for HELOC approvals, bridge financing offers the fastest path forward.
Lakewood's mid-century housing stock and established neighborhoods attract buyers looking to upgrade within the same community. Bridge loans enable these local moves without the stress of coordinating simultaneous closings or temporary housing.
Los Angeles County transfer taxes and closing costs affect the total expense of using bridge financing. Factor these costs into your calculation when determining if the benefits of securing your next property outweigh the financing expenses.
Many Lakewood sellers prefer non-contingent offers, especially in neighborhoods with limited inventory. Bridge financing removes the sale contingency, making your offer significantly more attractive even if you're not the highest bidder.
Most bridge loans close in 7-14 days with minimal documentation. The process focuses on property values and equity rather than traditional income verification, allowing for faster approvals than conventional financing.
Most bridge loans offer 6-12 month terms with extension options. You can also refinance into permanent financing or negotiate an extension, though additional fees typically apply for term extensions.
Yes, bridge loans work for investment property transitions. The program focuses on your equity position and exit strategy rather than whether the properties are owner-occupied or rental investments.
Payment structures vary by lender. Many bridge loans offer interest-only or deferred payment options for the first 3-6 months, minimizing your carrying costs while marketing your current property.
Most bridge lenders accept credit scores from 600-620 and up. The stronger your equity position and property values, the more flexible lenders become with credit requirements.