Loading
Redondo Beach moves fast. Sellers expect clean offers with short contingencies, and waiting for your current home to close kills deals.
Bridge financing lets you write non-contingent offers while your existing property lists. In this coastal market, that speed advantage matters.
Most bridge borrowers here are moving within the South Bay or upgrading from inland LA County. The loan gives you 6-12 months to sell without pressure.
Rates run 7-10% with origination fees around 2 points. You're paying for speed and flexibility, not a long-term mortgage.
Bridge Loans in Redondo Beach
Lenders approve bridge loans based on combined equity in both properties. You typically need 25-30% equity in your current home as collateral.
Credit minimums sit around 640-660. Debt-to-income ratios matter less than asset strength and exit strategy.
Most lenders cap the bridge loan at 80% of your current home's value. You'll make interest-only payments until your existing property sells.
Income documentation varies by lender. Some require full verification, others focus purely on assets and equity position.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Redondo Beach.
Redondo Beach moves fast. Sellers expect clean offers with short contingencies, and waiting for your current home to close kills deals.
Bridge financing lets you write non-contingent offers while your existing property lists. In this coastal market, that speed advantage matters.
Most bridge borrowers here are moving within the South Bay or upgrading from inland LA County. The loan gives you 6-12 months to sell without pressure.
Bridge loans are specialty products. Most retail banks don't touch them, and the lenders who do have specific property type preferences.
Private lenders dominate this space in Redondo Beach. They move faster than traditional banks but charge higher rates for that speed.
Approval timelines run 10-21 days with the right documentation. Lenders want appraisals on both properties and a clear listing strategy.
Some lenders require your existing home to be listed before funding. Others approve based on broker price opinions if the market supports quick sales.
I only recommend bridge loans when you have a legitimate buyer pool for your existing property. This isn't a speculative tool.
Redondo Beach homes under $2M typically sell within 60 days in normal conditions. Above that price point, plan for 90-120 days to be safe.
The biggest mistake is underestimating your payoff timeline. If your home doesn't sell within the bridge term, you face extension fees or forced refinancing.
Smart move: Get pre-approved for a conventional loan as your backup exit. If the sale falls through, you can refinance the bridge into permanent financing.
Bridge loans cost more than hard money but offer cleaner exit terms. Hard money lenders focus on the new purchase only and want higher equity stakes.
Versus home equity lines, bridge loans don't require monthly principal payments and won't block your sale when it closes.
Some buyers consider selling first and renting short-term. That saves bridge costs but you lose buyer leverage and face two moves.
Interest-only loans work for investment properties but won't help you buy without sale contingencies on your primary residence.
Redondo Beach pricing creates equity positions that support bridge lending. Most homeowners have enough appreciation for the 25-30% requirement.
The South Bay market rewards speed. Sellers here often have multiple offers and prefer buyers who can close in 21-30 days without contingencies.
Beachfront and ocean-view properties take longer to sell than homes east of PCH. Factor that into your bridge timeline if you're selling coastal.
Property taxes in Los Angeles County will reset on your new purchase. Bridge lenders account for that in qualifying but it affects your carrying costs.
You'll face extension fees of 1-2 points or need to refinance into permanent financing. Most lenders offer 6-month extensions but rates increase.
Yes, but lenders prefer single-family homes. Condos face stricter LTV limits around 70% and some lenders exclude warrantable buildings entirely.
Minimum 25-30% equity for most bridge lenders. They'll combine equity from both properties to determine your maximum loan amount.
Requirements vary. Some lenders require active MLS listing before funding, others approve based on broker price opinion and market conditions.
Rates vary by borrower profile and market conditions. Current range sits at 7-10% plus 2 points in origination fees for qualified borrowers.
Yes, but lenders treat investment bridges differently. You'll need stronger equity positions and some require cross-collateralization on multiple properties.