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Bridge Loans in Torrance
Torrance homeowners face timing gaps when upgrading to larger homes or downsizing in South Bay's competitive market. Bridge loans let you buy first, then sell your current property without contingencies.
Most Torrance buyers using bridge loans own in established neighborhoods like Hollywood Riviera or Walteria. They need 60-90 days to close on a new home while preparing their current property for sale.
South Bay's tight inventory means waiting to sell first often means losing your next home to all-cash offers. Bridge financing gives you buying power that matches cash buyers in multiple-offer scenarios.
Lenders require significant equity in your current Torrance home—typically 30% minimum. They'll underwrite based on your ability to carry both properties temporarily, though most don't require dual payments.
Credit requirements vary widely: 620 minimum for some portfolio lenders, 680+ for better terms. Your debt-to-income gets calculated assuming you'll carry both mortgages short-term.
The property you're selling needs clear marketability. Lenders won't bridge to a home that won't sell quickly—expect them to review comps and condition before approval.
Most bridge loans come from portfolio lenders and private capital—not Fannie Mae or FHA. Rates run 7.5%-12% depending on equity position and term length.
Expect origination fees of 1.5%-2.5% plus higher appraisal costs since lenders evaluate both properties. Total closing costs typically hit $8,000-$15,000 for a $600,000 bridge loan.
Some lenders offer interest-only terms where payments get deferred until sale. Others structure it as a second lien behind your existing mortgage to minimize closing costs.
Bridge loans work best when you know your Torrance home will sell within 90 days. If you need six months to renovate before listing, hard money makes more sense.
Watch out for prepayment penalties—some lenders charge 2%-3% if you pay off early. That eats into your equity when your home sells faster than expected.
I tell clients to budget for three months of bridge payments even if they expect a quick sale. South Bay markets shift fast, and you don't want to panic-price your listing because the bridge term is expiring.
Hard money loans cost more—9%-14% rates—but offer longer terms if your property needs work before listing. Bridge loans assume your home is market-ready now.
Home equity lines require monthly payments and don't give you the full purchase power of a bridge loan. They work for small down payment gaps, not full property purchases.
Contingent offers save money but lose you homes in competitive Torrance neighborhoods. Sellers pick non-contingent offers even when yours is higher.
Torrance homes in desirable school districts like North Torrance or near the beach typically sell within 30-45 days. Lenders view these as lower-risk bridge candidates than properties in less liquid markets.
South Bay's strong employment base at SpaceX, Toyota, and aerospace firms creates steady buyer demand. This market stability makes bridge lenders more comfortable with Torrance properties than volatile markets.
Proximity to LAX and South Bay offices means corporate relocations drive quick closes. Bridge loans help you capitalize on timing when relocation buyers need immediate occupancy and will pay premium prices.
Most lenders offer one 3-6 month extension for a fee of 0.5%-1% of the loan amount. You'll need to show active marketing and reasonable pricing to qualify for the extension.
Yes, if you have enough equity. Lenders typically allow combined loan-to-value of 70%-80%, meaning your total debt can't exceed that percentage of your home's value.
Most bridge lenders focus primarily on equity and exit strategy, but they'll verify you can make payments if the home doesn't sell quickly. Income matters less than with traditional loans.
Expect 10-21 days with portfolio lenders. You need appraisals on both properties and title work, but underwriting is faster than conventional loans since equity drives approval.
Many lenders prefer seeing an active listing with market pricing. It proves your exit strategy and helps them assess how quickly you'll repay the loan.
Yes, but terms differ from owner-occupied purchases. Rates run 1%-2% higher, and lenders typically want 35%-40% equity in the property you're selling.
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.