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Bridge Loans in West Hollywood
West Hollywood real estate moves fast. Properties under $2M get multiple offers within days, often with all-cash competition.
Bridge loans let you act like a cash buyer while your current property sells. In WeHo's tight inventory market, that speed advantage often means the difference between winning and losing a bid.
Most sellers here prefer clean offers without sale contingencies. A bridge loan removes that obstacle without forcing you to liquidate investments or tap retirement accounts.
You need significant equity in your current property. Most lenders require 30-40% equity minimum, and some want 50% for non-owner occupied properties.
Credit matters less than equity. I've closed bridge loans for borrowers with 640 scores when they had 60% equity in a Sunset Strip condo.
Lenders verify ability to carry both mortgages temporarily. Expect to show reserves covering 6-12 months of payments on both properties.
Traditional banks rarely touch bridge loans anymore. You're looking at private lenders, specialty finance companies, and portfolio lenders who hold their own paper.
Rates run 7-12% depending on your equity position and exit strategy. These aren't cheap, but you're paying for speed and flexibility, not long-term affordability.
Most bridge loans carry 6-12 month terms. Some lenders offer extensions if your property hasn't sold, usually for a fee of 0.5-1% of the loan amount.
Expect 2-4 points in origination fees. West Hollywood properties command better pricing because lenders see them as highly liquid collateral.
Bridge loans work best when your current property will sell within 6 months. If you're underwater on timeline or the market shifts, you're stuck carrying two expensive mortgages.
I tell clients to price their existing property aggressively from day one. The bridge loan clock starts ticking immediately, and carrying costs add up fast in this rate environment.
West Hollywood sellers upgrading to Hollywood Hills or Beverly Hills adjacent neighborhoods use these most. The price jump is too big to save the gap, but their WeHo condo equity unlocks the move.
Have a backup plan. What happens if your property doesn't sell in 6 months? Can you rent it? Extend the loan? Refinance the new property into permanent financing? Answer these before closing.
Hard Money Loans cost more but offer even faster closes and work for properties needing renovation. Bridge loans assume your current property is market-ready.
Home Equity Lines give you access to equity without selling, but most lenders cap combined loan-to-value at 80-90%. Bridge lenders go higher, sometimes to 95% CLTV.
Some buyers consider Interest-Only Loans to reduce payment burden while carrying two properties. That works if you're willing to wait and list later, but removes the urgency advantage.
West Hollywood condos in full-service buildings carry HOA fees that spike your carrying costs during the bridge period. Factor $800-1,500/month into your budget.
The WeHo rental market is strong. If your sale timeline extends, converting to a rental often generates enough income to cover the bridge loan payment until you can sell at your target price.
Parking matters here. Properties with dedicated spaces sell faster, which affects your bridge loan risk. A unit with tandem parking in a Walk Score 95 location moves in 30 days. No parking can sit for 90+.
Most bridge lenders recognize West Hollywood zip codes as premium collateral. You'll get better loan-to-value ratios here than in surrounding LA County areas.
Most bridge loans close in 7-14 days with complete documentation. Cash-out scenarios or complex title situations may add a week.
Most lenders offer 6-month extensions for a fee. You can also refinance the new property into conventional financing or convert your existing property to a rental.
Yes, condos qualify easily here. Lenders prefer buildings with strong HOA reserves and low owner-occupancy ratios under 50% in some cases.
Most lenders require an active listing or signed listing agreement. They want proof you're committed to selling, not just accessing equity.
Bridge loan amounts depend on your equity and the new purchase price. I've arranged bridge financing up to $3M for qualified West Hollywood sellers.
Consult your tax advisor, but interest on loans secured by your primary residence may be deductible. Investment property rules differ significantly.
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.