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Pasadena's competitive luxury market makes timing critical. Bridge loans let you close on a new property before your current home sells.
This matters when sellers won't wait for your contingent offer. You compete as a cash buyer while your old property hits the market.
Most Pasadena bridge loan scenarios involve upgrading within the same zip code. Buyers want to stay in the same school district or neighborhood.
The median close is 45-60 days in this market. Bridge financing eliminates that waiting period entirely.
Bridge Loans in Pasadena
You need at least 20% equity in your current home. Most lenders require 30-40% to approve bridge financing.
Credit minimums run 640-680 depending on the lender. Your debt ratios include both mortgages until the old property sells.
The property being sold must be listed or ready to list. Lenders want proof of market timing and realistic pricing.
Income verification follows standard guidelines. W-2s and bank statements prove you can carry both payments temporarily.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Pasadena.
Pasadena's competitive luxury market makes timing critical. Bridge loans let you close on a new property before your current home sells.
This matters when sellers won't wait for your contingent offer. You compete as a cash buyer while your old property hits the market.
Most Pasadena bridge loan scenarios involve upgrading within the same zip code. Buyers want to stay in the same school district or neighborhood.
Portfolio lenders dominate bridge financing in Pasadena. These aren't fannie mae products sold to Wall Street.
Rates run 2-4 points above conventional mortgages. You pay for speed and flexibility, not lowest cost.
Terms last 6-12 months with one extension option. Most borrowers exit within 90 days after their sale closes.
Expect origination fees between 1-2% of the loan amount. Some lenders charge higher rates instead of upfront points.
Bridge loans work best for move-up buyers in established Pasadena neighborhoods. You avoid settling for less because you need a quick sale.
The mistake is underestimating carrying costs. Two mortgages, two property tax bills, double insurance—it adds up fast.
Price your existing home right from day one. Overpricing because you have bridge financing destroys the whole strategy.
We structure most deals with interest-only payments. That minimizes monthly burn while your old property sells.
Hard money loans fund faster but cost more. Bridge loans from portfolio lenders offer better rates for owner-occupied scenarios.
Home equity lines seem cheaper upfront. But HELOC approval takes 3-4 weeks and sellers know you still have contingencies.
Construction loans serve different purposes entirely. Those fund builds, not property transitions between purchases.
Investor loans work for rental properties. Bridge financing targets primary residence upgrades with defined exit timelines.
South Pasadena and San Marino borders create competitive pressure. Buyers need non-contingent offers to win bidding wars.
The luxury segment above $2M sees bridge loans frequently. Sellers at that price point rarely accept contingent offers.
Private schools and magnet programs drive mid-year moves. Bridge financing lets families relocate without summer-only timing.
Teardown lots in established neighborhoods require fast closings. Developers pay cash, so owner-occupants need similar speed.
Most bridge loans close in 7-14 days with portfolio lenders. You need an appraisal on both properties and clear title on your existing home.
Most lenders offer one 6-month extension with additional fees. You'll need proof the property is actively marketed at competitive pricing.
Yes, but lenders review HOA financials and litigation history. Warrantable condos qualify easier than non-warrantable properties.
You pay interest-only on the bridge loan monthly. Your existing mortgage payment continues until that property sells and closes.
Sale proceeds pay off the bridge loan at closing. Any remaining equity transfers to you as usual through escrow.