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Bridge Loans in Lawndale
Lawndale's tight inventory makes timing critical when you find the right property. Bridge loans let you close on a new home before selling your current one.
This works well in Los Angeles County where competitive listings move fast. You make non-contingent offers that sellers actually accept.
Most bridge lenders need 20-30% equity in your current property. They use combined loan-to-value across both homes.
Credit requirements run 640-680 minimum depending on the lender. Your existing home must be marketable and priced to sell within the loan term.
Bridge loans come from specialty lenders, not conventional banks. Rates run 8-12% with origination fees of 1.5-3 points.
Most lenders cap bridge loans at 80% CLTV across both properties. Some require interest reserves or proof the existing home is already listed.
Bridge loans make sense when Lawndale inventory is low and you can't risk losing your next home to another buyer. They don't make sense if your current property needs repairs or won't sell quickly.
I run the numbers on whether bridge financing costs less than renting temporarily or making a contingent offer that gets rejected. Usually it's worth it if you have strong equity and a sellable property.
Bridge loans differ from hard money in that they're designed for owner-occupied transitions, not fix-and-flip projects. Hard money focuses on the new property's value, while bridge loans evaluate both properties.
Home equity lines seem cheaper but most banks won't approve a HELOC if you're buying another property simultaneously. Bridge lenders expect exactly that scenario.
Lawndale sits between higher-priced beach cities and more affordable inland areas. Buyers often bridge from Lawndale to upgrade nearby or use equity to move within the same area.
Properties in Los Angeles County generally sell faster than rural areas, which helps with bridge loan exit strategies. Lenders feel more comfortable with South Bay locations.
Most bridge lenders close in 30-45 days, faster than conventional financing. Some can do 21 days if appraisals and title work move quickly.
Most lenders offer 6-12 month extensions for a fee. You can also refinance into conventional financing on the new property if your old home is rented.
Lenders want marketable properties that will sell quickly. Major repairs usually disqualify you unless you price the home accordingly or complete work first.
Rates swing 2-4% between lenders based on your equity and credit. Shopping multiple bridge lenders saves thousands in interest over the loan term.
Some lenders allow bridge loans for investment purchases. Rates run higher and down payment requirements increase compared to owner-occupied scenarios.
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.