Question 1

What happens if my Torrance home doesn't sell before the bridge loan expires?

Accepted Answer

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.

Question 2

Can I get a bridge loan if I still owe $400,000 on my current Torrance home?

Accepted Answer

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.

Question 3

Do bridge lenders care about my income if I can prove equity?

Accepted Answer

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.

Question 4

How fast can I close a bridge loan in Torrance?

Accepted Answer

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.

Question 5

Should I list my current home before applying for a bridge loan?

Accepted Answer

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.

Question 6

Can I use a bridge loan to buy an investment property in Torrance?

Accepted Answer

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.

Bridge Loans in Torrance: Fast Financing Between Properties