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Palmdale's aerospace and service industry workforce creates steady turnover in the housing market. Bridge loans let you buy before you sell without scrambling for temporary housing or losing your next home to another buyer.
Most Palmdale homeowners have equity from the past decade's appreciation. That equity becomes your down payment through bridge financing, even while your current property sits on the market.
Bridge Loans in Palmdale
You need significant equity in your current home—most lenders want 20% minimum after the bridge loan is factored in. Your new purchase must appraise, and you need reserves to cover both mortgages for 6-12 months.
Credit matters less than equity position. Scores around 660 work if your loan-to-value is strong. Lenders approve based on your ability to carry two payments temporarily, not your debt ratios alone.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Palmdale.
Palmdale's aerospace and service industry workforce creates steady turnover in the housing market. Bridge loans let you buy before you sell without scrambling for temporary housing or losing your next home to another buyer.
Most Palmdale homeowners have equity from the past decade's appreciation. That equity becomes your down payment through bridge financing, even while your current property sits on the market.
You need significant equity in your current home—most lenders want 20% minimum after the bridge loan is factored in. Your new purchase must appraise, and you need reserves to cover both mortgages for 6-12 months.
Banks rarely offer bridge loans anymore. Portfolio lenders and private capital groups fill this space now. Rates run 7-11% depending on your equity position and property quality.
Terms max out at 12 months usually. You pay interest-only monthly while both properties are in play. Origination fees run 1-2 points higher than conventional mortgages because of the short-term risk.
Most Palmdale buyers don't need bridge loans if they price aggressively and accept a sale contingency offer. Bridge financing makes sense when you're moving up significantly or the seller won't wait for your contingency.
I've seen clients burn $15,000 in bridge loan costs to avoid losing a $50,000 negotiating advantage. That math works. Paying bridge fees to avoid a rent-back situation rarely does—those numbers don't pencil out.
Hard money loans offer similar speed but higher rates and fees—useful if your equity is thin or credit is damaged. Bridge loans cost less when you qualify for both.
Home equity lines give you flexibility without the urgency, but most lenders won't approve a HELOC when you're buying another property simultaneously. Bridge financing handles the timing problem that HELOCs can't.
Palmdale's inventory swings with aerospace hiring cycles. When Lockheed or Northrop ramp up, homes move faster and bridge loans become more valuable for competing against all-cash defense contractors.
The city's sprawl means selling timelines vary widely by neighborhood. Homes near the 14 Freeway sell faster than east Palmdale properties. Your bridge loan cost depends partly on how long you'll actually carry two mortgages.
Most lenders offer one extension for a fee if you've reduced your price and shown marketing effort. After that, you'll need to refinance or sell at a steeper discount to avoid default.
Yes, but lenders require more equity—typically 30% minimum. Rental income doesn't count toward qualification since you're planning to sell the property anyway.
Most portfolio lenders fund in 10-15 days once you have an accepted offer. You need a recent appraisal on your current home to move that quickly.
No, your rate is locked at origination. You just pay less total interest by paying off the loan sooner when your property closes.
Most bridge lenders want move-in ready properties. For fixers, you'd combine a bridge loan with construction financing or use hard money instead.