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Bridge Loans 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.
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.
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.
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.