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Bridge Loans in Los Angeles
LA's fast-moving market punishes contingent offers. Bridge loans let you close on a new property while your current home is still listed.
These short-term loans work best when you need 6-12 months to sell. Expect to pay 7-10% interest, but you gain negotiating power by writing non-contingent offers.
Lenders approve based on equity in your current property, typically requiring 30-40% combined equity. Credit matters less than assets and exit strategy.
You'll need proof your existing home can sell within the loan term. Most lenders want a broker price opinion or recent appraisal showing realistic list price.
Bridge loans come from private lenders and specialized non-QM shops, not your typical bank. Each lender structures deals differently on loan-to-value and repayment terms.
Some lenders fund based on future sale proceeds only. Others let you service both mortgages during the bridge period if income supports it.
I see bridge loans work best in west LA neighborhoods where inventory moves in 30-60 days. They're riskier in areas where homes sit for months.
Most borrowers underestimate closing costs and carrying expenses. Budget for two mortgages, bridge loan interest, and selling costs before you commit.
Hard money loans fund faster but cost more — expect 10-14% rates. Bridge loans offer slightly better terms since you have a clear exit through your home sale.
If you can wait, a home equity line on your current property costs less. But HELOCs don't help if you need to write a non-contingent offer next week.
LA's market timing matters enormously. Spring selling season gives you the best shot at moving your existing property quickly.
Downtown and westside condos can take longer to sell than single-family homes. Your bridge loan term needs to account for realistic days on market in your specific neighborhood.
Most lenders offer 6-month extensions for a fee. If you can't extend, you'll need to refinance or bring cash to pay off the bridge loan.
Yes, a ratified purchase contract strengthens your application. Lenders view pending sales as lower risk than properties just hitting the market.
Depends on the lender structure. Some roll all payments into the bridge loan payoff. Others require monthly interest payments during the term.
Fastest closings run 7-10 days with all documentation ready. Most deals close in 2-3 weeks, still faster than conventional financing.
Most lenders cap at 80% LTV on your combined property values. The actual limit depends on your equity and the lender's portfolio requirements.
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.