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Bridge Loans in Rancho Palos Verdes
Rancho Palos Verdes sellers expect clean offers. Listing your current home as contingent kills deals in this coastal market where buyers have options.
Bridge financing lets you close on your next property while your existing home lists. You compete like a cash buyer without liquidating investments or timing the market perfectly.
Lenders approve based on combined equity, not income. You need 25-30% equity in your current property and sufficient assets to cover both mortgages temporarily.
Credit matters less than equity position. Most bridge lenders work with 620+ scores but focus on loan-to-value across both properties and exit strategy clarity.
Your existing home must be market-ready or already listed. Lenders won't bridge properties that can't sell within the typical 6-12 month loan term.
Bridge loans come from private lenders and specialty finance companies, not traditional banks. Rates run 7-12% because you're paying for speed and flexibility.
Most bridge terms are interest-only with 6-12 month durations. Lenders include prepayment options since the goal is paying off once your property sells.
Expect origination fees of 1-2 points plus third-party costs. The pricing reflects risk and fast closing timelines that traditional underwriting can't match.
We structure these two ways: as a second lien on your current property or as a first lien covering both properties. The second lien route works when you want minimal disruption to your existing low-rate mortgage.
Timing matters more than rate. If waiting 60 days to sell costs you your ideal Palos Verdes property, paying 9% for six months beats missing the purchase entirely.
Build buffer into your exit plan. Markets shift and homes sit longer than expected. If you can't carry both properties for 90 days beyond your optimistic sale timeline, reconsider the bridge approach.
Hard money loans fund faster but cost more, running 10-15% with higher fees. They work better for distressed properties or complex situations where bridge lenders won't touch the deal.
Home equity lines require income qualification and appraisals, taking 30-45 days. Bridge loans skip traditional underwriting, funding on equity position and exit strategy alone.
Selling first eliminates financing costs but forces you into temporary housing or accepting backup position offers. That contingency approach rarely wins in competitive Palos Verdes situations.
Rancho Palos Verdes properties move differently than inland Los Angeles. Coastal location and ocean views create specific buyer pools, meaning sale timelines vary by property type and view quality.
Estate-sized homes on large lots can sit 90+ days even in strong markets. Factor realistic absorption rates into your bridge timeline rather than optimistic agent projections.
Escrow in California runs 30 days minimum. That clock doesn't start until you accept an offer, so front-load your listing prep and pricing strategy before closing your bridge loan.
Most lenders offer 6-month extensions at higher rates or help you refinance into traditional financing. Some require forced sale or foreclosure if you can't pay off or extend.
Yes, but lenders want to see it's market-ready and you have a listing plan. Most require the property listed within 30 days of bridge loan funding.
No, they focus on equity position and exit strategy. You need proof of assets to cover payments temporarily, but income qualification is minimal compared to traditional loans.
Most lenders go to 80% combined loan-to-value across both properties. Your borrowing power depends on equity in your current home and down payment on the new purchase.
Consult your tax advisor, but generally yes if the loan is secured by qualified residences. TCJA caps apply to combined mortgage debt across properties.
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.