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West Covina sellers face timing gaps when upgrading homes. Bridge loans let you close on a new property before your current one sells.
The San Gabriel Valley market moves fast. Missing a competitive home because you're waiting on a sale can cost you the right property.
Most borrowers use bridge loans for 6-12 months while marketing their existing home. You avoid contingent offers that sellers reject in hot markets.
Bridge Loans in West Covina
You need significant equity in your current property. Most lenders require 20-30% combined equity across both homes.
Credit matters less than equity and exit strategy. We've closed bridge loans for borrowers with 640 scores if they have solid equity positions.
Income verification is lighter than traditional loans. Lenders focus on your ability to carry both payments temporarily and your existing home's marketability.
You must demonstrate how you'll pay off the bridge loan. That's either selling your current home or refinancing into permanent financing.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in West Covina.
West Covina sellers face timing gaps when upgrading homes. Bridge loans let you close on a new property before your current one sells.
The San Gabriel Valley market moves fast. Missing a competitive home because you're waiting on a sale can cost you the right property.
Most borrowers use bridge loans for 6-12 months while marketing their existing home. You avoid contingent offers that sellers reject in hot markets.
Bridge loans come from private lenders and specialized funds, not retail banks. Rates run 7-12% depending on your equity position and property type.
Each lender structures loans differently. Some use first position on the new property, others take second position on your current home.
Expect 1-2% origination fees plus third-party costs. Speed costs money - these loans close in 7-14 days versus 30-45 for conventional financing.
Shopping multiple lenders is critical because rate spreads exceed 3% between aggressive and conservative programs. We compare 15-20 bridge lenders for each scenario.
Most West Covina borrowers overpay by using the first bridge lender they contact. Rate shopping saves $3,000-$8,000 on a 9-month loan.
Your strongest negotiating position comes from having your current home listed before applying. Lenders price better when they see active marketing and realistic pricing.
Interest-only payments make carrying two properties manageable. A $400,000 bridge loan at 9% costs $3,000 monthly versus $2,400 for principal and interest.
The biggest mistake is underestimating how long your home will take to sell. Build 3 months of buffer into your timeline or you'll scramble for extensions at punitive rates.
Hard money loans fund even faster but cost 10-14% with higher fees. Choose hard money only if your timeline is under 10 days or credit is severely damaged.
Home equity lines cost less at 8-9% but require months to establish. That doesn't help when you need to close on the new property next week.
Construction loans work for ground-up projects but won't bridge between two finished properties. The use cases don't overlap despite similar short-term structures.
Investor loans offer permanent financing if you'll rent your current home instead of selling. Compare the cash flow from renting against bridge loan costs.
West Covina's mixed inventory of older ranches and newer developments affects bridge loan approval. Lenders prefer homes built after 1980 as collateral.
Properties near the 10 freeway and Plaza West Covina retail corridor sell faster, which lenders factor into risk pricing. Location impacts your rate by 0.5-1%.
Los Angeles County transfer taxes add to your exit costs when selling. Calculate $1.10 per $1,000 of sale price into your bridge loan payoff budget.
The local market typically sees 30-60 day sale cycles for well-priced homes. Overpricing your current property creates expensive bridge loan extensions.
Most bridge loans close in 7-14 days with clean title and appraisal. Rush scenarios can fund in 5 days with expedited processing fees.
You can extend for 3-6 months at higher rates or refinance into permanent financing. Extensions typically add 2-3% to your interest rate.
Yes, you carry both payments until your current home sells. Interest-only options reduce the bridge loan payment by 25-30%.
Yes, because underwriting focuses on equity and exit strategy, not employment stability. Your current home's equity matters more than income continuity.
Most lenders charge a cancellation fee of 0.5-1% if you cancel after approval. Avoid applying until you have a ratified contract on your new purchase.