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Bridge Loans in Monrovia
Monrovia's foothill location attracts move-up buyers who own property elsewhere. Bridge loans let you buy before you sell, critical when competing against cash offers.
These loans typically run 6-12 months with interest-only payments. You close on your new Monrovia home while your current property stays listed.
Most bridge loans fund within 10-15 days, faster than conventional mortgages. Speed matters in tight markets where sellers favor quick closes.
Lenders combine the value of both properties to determine loan amount. Most require 20-30% equity in your current home plus down payment on the new purchase.
You'll need strong credit, typically 680 minimum. Debt-to-income ratios matter less since you're not carrying both mortgages long-term.
Proof of listing or sale pending on your current property strengthens approval. Some lenders require active listing before funding.
Bridge loans come from private lenders and specialty finance companies, not traditional banks. Our network includes 15+ bridge lenders with different property type preferences.
Rates run 7-12% with 1-2 points in fees. Higher than conventional, but you're paying for speed and flexibility.
Some lenders offer bridge-to-permanent programs that convert to conventional loans after your sale closes. This saves a second set of closing costs.
I see bridge loans work best when buyers have strong equity positions and realistic timelines. Overpriced listings create problems when the bridge period expires.
The math needs to work before and after. Can you carry interest-only payments on both properties if your sale delays? Run worst-case scenarios.
Consider hard money if your current property needs work before selling. Bridge lenders prefer move-in ready homes that will sell quickly.
Hard money loans fund faster but cost more, often 10-15% rates. Choose bridge when you have good credit and equity but need 2-3 weeks to close.
Home equity lines cost less but take longer to approve and may not cover full down payment needs. Bridge loans provide larger amounts with faster approval.
Contingent offers sound cheaper but rarely win in competitive markets. Bridge loans eliminate contingencies, making your offer stronger.
Monrovia homes near Old Town or in the foothills move fast when priced right. Bridge loans make sense here because inventory stays tight.
Los Angeles County transfer taxes add to closing costs on both transactions. Factor these into your bridge loan budget, especially on higher-value properties.
Many Monrovia buyers are relocating from other LA County areas. Bridge loans help avoid temporary housing costs while managing two transactions.
Most lenders offer 6-month extensions for a fee. You'll continue interest-only payments. Some convert to longer-term loans, but expect higher rates.
Some lenders allow it, but you'll need significant equity and reserves. Most require an active listing or pre-sale agreement before funding.
Typically 80% of your current home's value plus down payment on the new purchase. Your combined loan-to-value across both properties usually caps at 80%.
Usually yes, as acquisition debt on your new primary residence. Consult your tax advisor since rules vary based on total mortgage debt.
Most lenders set 6-month minimums even if you sell sooner. You'll pay interest for the full term regardless of when your property sells.
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.