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South El Monte's tight inventory means most buyers can't wait 60 days for a traditional sale contingency. Bridge loans let you close on your next property while your current home hits the market.
These loans work best when you need to move fast on a competitive property. Expect 12-24 month terms with rates 2-4 points above conventional mortgages.
Bridge Loans in South El Monte
Lenders look at combined loan-to-value across both properties. You typically need 20-30% equity in your current home and strong credit above 680.
Most bridge lenders cap total debt at 75% LTV on your existing property. They'll verify you can carry both mortgage payments for at least six months.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in South El Monte.
South El Monte's tight inventory means most buyers can't wait 60 days for a traditional sale contingency. Bridge loans let you close on your next property while your current home hits the market.
These loans work best when you need to move fast on a competitive property. Expect 12-24 month terms with rates 2-4 points above conventional mortgages.
Lenders look at combined loan-to-value across both properties. You typically need 20-30% equity in your current home and strong credit above 680.
Bridge loans aren't carried by traditional banks. Portfolio lenders and specialty finance companies dominate this space with widely varying terms.
Some lenders count rental income from your current property. Others require full payment coverage on both homes. Shopping multiple quotes saves thousands in fees and points.
I see bridge loans work cleanly when borrowers have a realistic sale timeline and price their home right. The biggest mistake is overpricing the existing property and burning through the loan term.
Exit strategy matters more than approval. Have a backup plan if your home doesn't sell in 90 days. Some lenders offer extensions but charge heavy fees.
Bridge loans cost more than home equity lines but close faster and don't require two separate loan processes. Hard money loans work if your credit is under 680.
If you can wait 45-60 days, selling first avoids bridge loan costs entirely. But in South El Monte's market, that often means losing the property you want.
South El Monte buyers often compete with cash offers from investors. Bridge financing removes your sale contingency and makes your offer look like cash to sellers.
Many borrowers here are moving within Los Angeles County for schools or larger homes. Bridge loans prevent temporary rentals or double moves when upgrading locally.
Most bridge loans close in 10-14 days with clean title and appraisal. Expect 7-10 days minimum even with perfect documentation.
You can request an extension for fees of 2-3 points, or refinance into a conventional loan. Some borrowers convert to a rental and keep both properties.
Yes, some lenders offer smaller bridge loans that cover just the down payment and closing costs. This reduces monthly carrying costs significantly.
Yes, both properties get appraised. Your existing home appraisal determines available equity while the new property appraisal confirms purchase price.
Most bridge lenders require 680 minimum. Below that, hard money loans are your better option despite higher rates.