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Malibu's luxury market moves differently than inland LA County. Homes sit longer but close faster when sellers find the right buyer.
Bridge loans solve a timing problem most Malibu sellers face. You can't list your beachfront property for top dollar while also making contingent offers on your next home.
Coastal estates rarely sell in 30 days. A bridge loan gives you 6-12 months to market your property without rushing or accepting lowball offers.
Bridge Loans in Malibu
Most lenders want to see 20-30% equity in the property you're selling. Your combined loan-to-value across both properties typically can't exceed 75-80%.
Credit requirements run softer than conventional loans, usually 620-640 minimum. Lenders care more about your exit strategy and property values than your debt-to-income ratio.
You need a clear path to repayment within 12 months. That means an active listing, signed purchase agreement, or concrete plan to refinance into permanent financing.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Malibu.
Malibu's luxury market moves differently than inland LA County. Homes sit longer but close faster when sellers find the right buyer.
Bridge loans solve a timing problem most Malibu sellers face. You can't list your beachfront property for top dollar while also making contingent offers on your next home.
Coastal estates rarely sell in 30 days. A bridge loan gives you 6-12 months to market your property without rushing or accepting lowball offers.
Bridge loans come from private lenders and specialty finance companies, not traditional banks. Rates typically run 7-12% with 1-3 points upfront.
Speed matters more than rate shopping here. The best lenders close in 7-14 days versus 30-45 for conventional financing.
Watch for prepayment penalties that lock you in beyond 6 months. Many Malibu properties sell faster than sellers expect once priced correctly.
Most Malibu bridge loan clients underestimate closing costs. Budget 3-5% of the loan amount for origination, appraisal, and title work on high-value coastal properties.
Interest-only payments keep monthly costs manageable while both properties carry. You're not building equity, but you're buying time to maximize your sale price.
The hidden cost is opportunity cost. If your existing home would sell for $300K more after six months of proper marketing, an $80K bridge loan cost becomes cheap insurance.
Hard money loans cost more but work when you lack equity or need renovation funding. Bridge loans assume you're selling a finished property in good condition.
Home equity lines seem cheaper but take 30-45 days to fund. You'll lose the property you want to buy while waiting for HELOC approval.
Construction loans fund in phases as work completes. Bridge loans fund upfront in one lump sum since no construction is planned.
Malibu appraisals take longer than standard LA County properties. Fewer comparable sales and unique coastal features slow the process to 2-3 weeks minimum.
Fire zones and coastal commission restrictions affect property values and timelines. Lenders familiar with Malibu underwrite these risks better than generic bridge lenders.
Title companies see more easement and access issues in Malibu than anywhere else in LA County. Build extra time into your closing timeline for title clearing.
Most bridge lenders close in 7-14 days once appraisal completes. Malibu appraisals add 2-3 weeks, so total timeline runs 3-5 weeks from application to funding.
You'll need to refinance into permanent financing or negotiate an extension. Extensions cost 1-2 additional points and higher rates, making them expensive.
Possibly, but hard money loans work better for properties needing significant work. Bridge lenders want finished homes ready to list and sell.
Less than conventional lenders. They focus on property equity and exit strategy since the loan is short-term and asset-based.
Most lenders cap at $5-10 million, though some private lenders go higher. Combined LTV across both properties typically maxes at 75-80%.