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Bridge Loans 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.
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.
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.
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.