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Bridge Loans in Larkspur
Larkspur's competitive Marin County real estate market often requires quick action when the right property appears. Bridge loans provide temporary financing that lets you purchase your next home before selling your current one.
This short-term solution works well in markets where timing matters. Many Larkspur buyers use bridge financing to make non-contingent offers that stand out to sellers.
Bridge loans typically last 6-12 months, giving you time to sell your existing property without rushing or accepting lowball offers. You maintain control over both transactions.
Bridge loan approval focuses on your total equity position across both properties. Lenders typically require 20-30% combined equity and verify you can handle both payment obligations temporarily.
Your existing home must be market-ready or nearly so. Lenders want confidence the property will sell within the loan term. Most require professional appraisals on both properties.
Credit scores matter less than with traditional mortgages, though most lenders prefer 680 or higher. Your debt-to-income ratio gets calculated assuming both mortgage payments until your current home sells.
Bridge loans come from specialized lenders rather than traditional banks. These lenders move faster because they focus solely on equity and exit strategy rather than extensive documentation.
Expect higher interest rates than conventional mortgages since you're paying for speed and flexibility. Rates typically run 7-12% depending on your equity position and loan structure.
Some lenders offer first-lien bridge loans, while others provide second-position financing behind your existing mortgage. First-lien options usually carry better rates but require paying off your current mortgage immediately.
Working with a broker gives you access to multiple bridge lenders simultaneously. We help structure the loan to minimize costs while maximizing your purchasing power in Larkspur's market.
Calculate total costs carefully before proceeding. Bridge loans include origination fees, interest payments, and potentially two sets of closing costs. We run scenarios showing break-even points versus alternative strategies.
Consider your backup plan if the existing home takes longer to sell than expected. Some borrowers arrange takeout financing or line up rental options to ensure they can service the bridge loan beyond initial expectations.
Bridge loans offer speed that home equity lines of credit cannot match. While HELOCs cost less, they require full underwriting that takes weeks. Bridge loans close in days when needed.
Hard money loans serve different purposes but share similar speed and flexibility. Bridge loans specifically target homeowners in transition, while hard money typically finances investors or renovation projects.
Some buyers consider selling first then renting temporarily. Bridge financing eliminates moving twice and lets you compete for homes without sale contingencies that Larkspur sellers often reject.
Marin County's strong property values support bridge financing well. The equity in established Larkspur homes often exceeds requirements, making qualification straightforward for long-term residents.
Multiple offer situations happen frequently in desirable Larkspur neighborhoods. Non-contingent offers backed by bridge financing give you competitive advantages that translate to better negotiating positions.
Consider seasonal market patterns when timing your bridge loan. Spring and summer typically bring more buyers for your existing home, potentially shortening the bridge period and reducing total interest costs.
Most bridge loans close within 7-14 days once you submit complete documentation. Some lenders can move faster for straightforward situations with strong equity positions.
Most lenders offer extensions for additional fees. You can also refinance into longer-term financing or arrange a traditional sale with more flexible timing.
Bridge loans work for both primary residences and investment properties. The qualification criteria remain similar, focusing on equity and exit strategy.
Expect 2-4% in origination fees plus interest during the bridge period. Total costs depend on how quickly your existing property sells and your specific rate.
Payment structures vary by lender. Some defer all payments until sale, others require interest-only payments, and some expect full principal and interest on the bridge portion.
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.