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Bridge Loans in Paramount
Paramount homeowners face a timing problem when upgrading. You find the right property, but your current home hasn't sold yet.
Bridge loans solve this by letting you close on the new place before selling the old one. In competitive LA County markets, waiting means losing deals.
These aren't conventional mortgages. They're short-term tools, typically 6-12 months, designed to close gaps between transactions.
Most Paramount borrowers use bridge financing when moving within the area or upgrading from condos to single-family homes.
Lenders underwrite bridge loans on equity, not employment. You need at least 30% equity in your current Paramount property to qualify.
Credit matters less than with conventional loans. Many lenders approve borrowers with 620 scores if the equity position is strong.
Income verification is lighter than traditional mortgages. Some programs skip employment docs entirely and focus on exit strategy.
Your exit plan matters most. Lenders want proof your existing home will sell at a price that covers the bridge loan payoff.
Bridge loans come from private lenders and non-QM specialists, not traditional banks. Rates typically run 8-12%, reflecting the short-term risk.
Most programs charge points upfront, usually 2-3% of the loan amount. You're paying for speed and flexibility, not low rates.
SRK Capital shops 200+ wholesale lenders to find programs that match your equity position and timeline. Terms vary dramatically between lenders.
Some lenders cap combined loan-to-value at 75%, others go to 80%. Finding the right fit means comparing dozens of options simultaneously.
The biggest mistake Paramount borrowers make is waiting too long to apply. Bridge loans close fast, but you still need 2-3 weeks for underwriting.
We see clients lose deals because they didn't line up financing before making offers. In hot pockets of LA County, that delay kills transactions.
Your existing home doesn't need to be listed yet, but lenders want an appraisal or broker price opinion showing realistic sale value.
Most deals work best when you can afford both payments temporarily. Some programs allow interest-only during the bridge period, reducing monthly burn.
Hard money loans and bridge loans overlap but serve different purposes. Hard money works for fix-and-flip; bridge loans handle personal transitions.
Home equity lines sound cheaper but take weeks to close and require full income verification. Bridge loans trade higher costs for speed and flexibility.
Construction loans extend 12-18 months with draw schedules. Bridge loans close faster but expect full payoff within a year.
Investor loans need rental income analysis and long-term holds. Bridge financing assumes you'll refinance or sell within months, not years.
Paramount's mix of older housing stock and newer developments creates natural upgrade cycles. Owners in older homes often bridge to newer construction nearby.
Los Angeles County transfer taxes and closing costs mean you need significant equity to make bridge financing work economically.
Many Paramount borrowers bridge when moving to better school zones without waiting for spring selling season. Timing flexibility matters here.
The city's proximity to major employment centers means buyers often need to close quickly when relocating. Bridge loans enable those compressed timelines.
Most bridge loans close in 2-3 weeks with clean title and appraisal. Some portfolio lenders close in 10 days if you have strong equity position.
Most lenders offer 6-month extensions for a fee. You can also refinance into a conventional loan if you can't sell within the original term.
Yes, lenders combine both mortgages when calculating loan-to-value. You typically need 30% equity after accounting for existing liens.
Yes, lenders appraise the property you're buying and the one you're selling. Both values determine your combined loan-to-value ratio.
Rates vary by borrower profile and market conditions, typically 8-12%. Your equity position and exit strategy affect pricing more than credit score.
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.