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Bridge Loans in San Rafael
San Rafael's competitive real estate market often requires quick action when the right property appears. Bridge loans provide the speed and flexibility needed to secure a new home before your current property sells.
Marin County properties typically command strong prices and attract serious buyers, making bridge financing a strategic tool. This short-term solution lets you move forward without waiting for your existing sale to close.
The 30 to 90-day timeframe for bridge loans aligns well with San Rafael's active market conditions. Most borrowers use this financing to avoid contingent offers that might weaken their negotiating position.
Bridge loan approval focuses on your existing equity and the combined value of both properties. Lenders typically require at least 20-25% equity in your current San Rafael home to consider your application.
Most bridge lenders examine the exit strategy closely—how you plan to repay the loan. Documented sale activity or a listing agreement on your existing property strengthens your application significantly.
Credit requirements are often more flexible than conventional mortgages, with minimum scores around 620-660. Your debt-to-income ratio matters less since the loan is temporary and secured by substantial real estate collateral.
Bridge loans in Marin County come from specialized lenders rather than traditional banks. Portfolio lenders and private money sources dominate this space, offering faster decisions and more flexible underwriting.
Expect interest rates 2-4% higher than conventional mortgages, reflecting the short-term nature and higher risk. Rates vary by borrower profile and market conditions, with typical ranges from 7-12% depending on your situation.
Most bridge lenders charge origination fees between 1-2% plus additional closing costs. Factor these expenses into your calculation when determining if bridge financing makes financial sense for your move.
Working with a mortgage broker expands your bridge loan options significantly in the San Rafael market. We maintain relationships with multiple bridge lenders who compete for your business, potentially saving thousands in fees and interest.
Timing is everything with bridge loans. Start the conversation before you find your new property so we can pre-qualify you and move quickly when opportunity strikes in Marin's fast-moving market.
Some bridge lenders offer interest-only payments during the loan term, preserving your cash flow. Others allow the interest to accrue and get paid at closing when your original property sells.
Hard money loans share similarities with bridge loans but typically cost more and serve different purposes. Bridge loans specifically address the timing gap between purchase and sale, while hard money works for various investment scenarios.
Home equity lines of credit offer another alternative but require monthly payments and may not provide enough capital for a San Rafael down payment. Bridge loans access more of your equity without ongoing payment obligations.
Construction loans serve builders and major renovators, while bridge loans help homeowners transition between properties. Each product fits specific situations—choosing correctly saves money and stress.
San Rafael properties in desirable neighborhoods like Gerstle Park or Dominican often receive multiple offers quickly. Bridge financing positions you as a cash-equivalent buyer without sale contingencies that might eliminate you from consideration.
Marin County's strong property values work in your favor when securing bridge financing. Lenders view local real estate as stable collateral, which can translate to better loan terms and higher loan-to-value ratios.
The typical 45-60 day close timeline for San Rafael home sales aligns well with bridge loan structures. Most properties that are priced correctly find buyers within the bridge loan period, minimizing your carrying costs.
Most bridge lenders can approve and fund within 5-10 business days once you provide property information and financial documentation. This speed advantage helps you compete in San Rafael's fast-paced market.
Most bridge loans include extension options for 30-90 days with additional fees. You can also refinance into a traditional mortgage or HELOC if needed, though this adds costs and complexity.
Yes, bridge loans work for both primary residences and investment properties. The qualification criteria and rates may vary slightly based on property type and your overall financial position.
Payment structures vary by lender. Some require interest-only payments, others defer all payments until closing. We help you find the payment option that best matches your cash flow situation.
Bridge loan amounts typically range from $100,000 to $5 million or more, depending on your combined property equity. The actual amount depends on your specific properties and the lender's program limits.
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.