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Montebello's mix of single-family homes and investment properties creates frequent bridge loan scenarios. Sellers don't always wait for your current home to close.
Bridge loans let you buy before you sell. Most Montebello borrowers use them to secure a competitive offer without a sale contingency.
These loans typically run 6-12 months. You'll need equity in your current property and enough income to handle both mortgage payments temporarily.
Bridge Loans in Montebello
You need at least 20% equity in your current property. Most lenders want 30% to feel comfortable with the combined loan exposure.
Credit requirements are looser than traditional loans—usually 620 minimum. Income matters less than equity since the timeline is short.
Lenders verify you can afford both mortgages during the bridge period. They'll stress-test worst-case scenarios where your old home takes months to sell.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Montebello.
Montebello's mix of single-family homes and investment properties creates frequent bridge loan scenarios. Sellers don't always wait for your current home to close.
Bridge loans let you buy before you sell. Most Montebello borrowers use them to secure a competitive offer without a sale contingency.
These loans typically run 6-12 months. You'll need equity in your current property and enough income to handle both mortgage payments temporarily.
Traditional banks rarely offer bridge loans anymore. Most volume happens through non-QM lenders who specialize in short-term financing.
Rates run 7-11% depending on your equity position and exit strategy. You'll pay 1-2 points in fees plus standard closing costs.
Some lenders offer delayed repayment structures where interest accrues until your old home sells. Others require monthly payments from day one.
Most Montebello bridge loans happen when sellers won't wait or buyers find their dream property unexpectedly. The best scenario is having your old home already listed.
Exit strategy matters more than anything. Lenders want proof your current home will sell—recent appraisal, listing agreement, or pending offers strengthen your case.
Some borrowers use bridge loans as temporary investor financing. They buy, renovate, then refinance into long-term debt once the property appraises higher.
Hard money loans fund faster but cost more—expect 10-14% rates. Bridge loans offer slightly better pricing for borrowers with strong exit plans.
Home equity lines of credit seem cheaper but take weeks to close and cap at lower amounts. Bridge loans can cover your full down payment needs.
Some buyers consider selling first, then renting temporarily. That works if you can find short-term housing and want to avoid double payments entirely.
Montebello's market moves faster than rural areas but slower than coastal LA hotspots. Most homes sell within 30-60 days when priced correctly.
Properties near Montebello Town Center or with recent updates tend to move quickest. Lenders feel better about bridge loans on homes with clear buyer appeal.
Los Angeles County transfer taxes add to your selling costs. Factor that into your exit math when calculating whether a bridge loan makes financial sense.
Most bridge loans include extension options for 3-6 months at higher rates. Some lenders require you to refinance into long-term debt or bring cash to pay down the bridge balance.
Yes, but expect stricter equity requirements and higher rates. Lenders want proof you're serious about selling, so having a listing agreement or buyer interest helps significantly.
Absolutely. Many investors use them to secure deals quickly before transitioning to conventional financing. Rental income from your old property can help offset carrying costs during the bridge period.
Most lenders cap combined loan-to-value at 80% across both properties. If your current home is worth $500K with a $300K mortgage, you could access roughly $100K in bridge financing depending on the new purchase price.
Seven days with all documentation ready and cooperative appraisers. Most deals close in 10-14 days, which still beats conventional loans by three weeks or more.