Loading
Loading
Monterey Park buyers often need to move fast in this competitive Los Angeles County market. Bridge loans let you close on a new home while your current property sits on the market.
These short-term loans work well when you find the right property but haven't sold yet. Most borrowers use them for 6-12 months before refinancing or paying off with sale proceeds.
Bridge Loans in Monterey Park
You need substantial equity in your current property—typically 25-30% minimum. Lenders evaluate both properties when determining loan amounts and terms.
Credit scores start around 620, but stronger profiles get better rates. Income matters less than equity since these loans focus on exit strategy rather than monthly payment ability.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Monterey Park.
Monterey Park buyers often need to move fast in this competitive Los Angeles County market. Bridge loans let you close on a new home while your current property sits on the market.
These short-term loans work well when you find the right property but haven't sold yet. Most borrowers use them for 6-12 months before refinancing or paying off with sale proceeds.
You need substantial equity in your current property—typically 25-30% minimum. Lenders evaluate both properties when determining loan amounts and terms.
Bridge loans come from private lenders and specialized non-QM shops, not traditional banks. Our network includes over 200 wholesale sources with different appetite for California deals.
Rates run higher than conventional mortgages—expect 8-12% or more. Points and fees add up quickly, so calculate total cost against your timeline before committing.
Most Monterey Park clients use bridge loans when they're upgrading homes in the same area. Selling first means moving twice or renting temporarily—neither option appeals to families.
The math only works if your existing property will sell within the loan term. I've seen borrowers extend these loans at punishing rates because they overestimated market demand. Price your current home realistically from day one.
Hard money loans offer similar speed but focus on investment properties rather than primary residence transitions. Bridge loans specifically address the timing gap for owner-occupants.
Some borrowers consider home equity lines instead, but those require monthly payments and lower loan amounts. Bridge loans give you full purchase power with one balloon payment at the end.
Monterey Park properties typically need competitive offers with short contingency periods. Bridge financing lets you write offers without sale contingencies—major advantage in multiple-offer situations.
Los Angeles County transfer taxes and closing costs add up on both transactions. Factor these into your total cost analysis when deciding if bridge financing makes financial sense.
Loan amounts depend on combined equity in both properties. Most lenders cap at 80% of existing home value minus current mortgage, plus down payment on new purchase.
You'll need to extend the bridge loan at higher rates or refinance into permanent financing. Some borrowers convert to rental properties rather than sell at a loss.
Yes, but hard money loans often work better for pure investment deals. Bridge loans shine when you're moving from one primary residence to another.
Most private lenders close in 7-14 days with complete documentation. Speed depends on property appraisals and title work, not loan approval itself.
Most are interest-only or fully deferred until the balloon payment. Deferred interest gets added to the principal—check if that affects your loan-to-value limits.