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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.
Bridge Loans in Monrovia
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.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options 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.
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.