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Bridge Loans in Lomita
Lomita sits in a South Bay market where move-up buyers face timing pressure. Homes sell, but not always on your timeline when you've already found your next property.
Bridge loans solve the chicken-and-egg problem: you need funds from your current home to buy the next one. These short-term loans let you close on the new property before your sale finalizes.
Lenders need proof your existing home will sell. That means an accepted offer or active listing with realistic pricing, plus strong equity in your current property.
Most bridge lenders require 20-25% equity in your existing home and count both mortgage payments in your debt-to-income ratio. Expect 680+ credit for best rates.
Bridge loans live in the non-QM space, which means fewer lenders and higher rates than conventional mortgages. Most charge 6-10% interest plus origination fees of 1-2 points.
We work with specialty lenders who underwrite these deals daily. They move fast because they understand the urgency, with closings possible in 10-15 days when documentation is clean.
The worst bridge loan scenarios we see involve overpriced listings. If your home sits for months, you're paying two mortgages at premium bridge rates with no exit strategy.
Price your existing home aggressively before pursuing bridge financing. Also run the numbers on both payments plus the bridge rate to ensure you can carry both properties if your sale delays.
Hard money loans cost more but don't require a pending sale, making them better for investors or buyers with equity but no immediate exit. Construction loans work if you're building, not bridging existing properties.
Interest-only loans reduce payment burden but don't solve the down payment timing gap. Investor loans apply if you're keeping the first property as a rental, which changes the entire structure.
Lomita's proximity to Torrance and the beach cities means move-up buyers often face competitive markets. Bridge loans give you cash-buyer strength when you're competing against others who don't need financing contingencies.
Local appraisers and title companies familiar with South Bay properties help accelerate closings. We coordinate those vendors to hit tight deadlines when bridge financing is in play.
Most bridge lenders offer extensions at additional cost, but you'll pay higher rates. Better strategy: price your listing competitively from day one to avoid this scenario.
Some lenders require an active listing, others accept a pre-listing appraisal. Expect tighter terms without a listing, including higher rates and more equity requirements.
Yes. You'll carry your original mortgage plus interest-only payments on the bridge loan. That's why strong cash reserves matter for qualification.
With clean documentation and local appraisers, 10-15 days is typical. Rush scenarios can close in 7 days if you pay expedite fees and have all paperwork ready.
Yes. Borrowers with 40%+ equity and strong credit get better pricing. Lower loan-to-value ratios reduce lender risk, which translates to lower rates and fees.
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.