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Bridge Loans 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.
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.
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%.
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.