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Bridge Loans in King City
King City sits in Monterey County's ag belt where property sales move slower than coastal markets. That timing gap creates problems when you need to buy before selling your current place.
Bridge loans exist for this exact scenario. They let you close on a new property using equity from your current home as collateral. No need to make your purchase contingent on a sale.
You need significant equity in your current property. Most lenders require at least 25-30% equity to secure a bridge loan. Your combined loan-to-value across both properties typically can't exceed 80%.
Credit matters less than equity and exit strategy. We see approvals at 620 credit if you have a solid plan to sell the existing home within 12 months. Income documentation is flexible since these are asset-based loans.
Bridge loans live in the private lending space. Big banks rarely touch them. Our network includes 15-20 active bridge lenders who actually close deals in smaller Monterey County markets.
Rates run 7-11% typically, with origination fees of 1-2 points. That sounds expensive until you compare it to losing a property you want or selling your current home under pressure at a discount.
Most King City bridge loan deals involve people moving to coastal Monterey County or upgrading locally. They've found their next property but their current home isn't listed yet or has no offers.
The mistake I see is waiting too long to explore bridge financing. By the time sellers realize they need it, they've already lost two properties they wanted. Start this conversation when you begin looking, not when you're in contract.
Hard money loans and bridge loans overlap but serve different purposes. Hard money focuses on property flips and investment deals. Bridge loans specifically solve the timing gap for owner-occupied transitions.
Interest-only loans can reduce monthly payments during the bridge period. Some borrowers combine strategies: bridge loan for the purchase, interest-only structure to manage carrying two properties temporarily.
King City properties often take 60-90 days to sell versus 30-45 in Carmel or Monterey. That slower pace makes bridge loans particularly useful here. You need financing that accounts for realistic agricultural market timing.
Lenders want to see your current property priced right for the local market. An overpriced listing kills bridge loan approval because your exit strategy looks weak. Price it to sell within six months.
Most bridge loans include extension options for 30-90 days with additional fees. If the property still hasn't sold, you'll need to refinance both properties or sell quickly, possibly at a discount.
Yes, but you need lenders who understand ag property values. We work with several who regularly finance ranch and farm transitions in Monterey County.
Minimum 25-30% equity, but 40%+ gives you better rates and terms. Lenders calculate this using current market value minus your existing mortgage balance.
Most bridge loans are interest-only, so you only pay the interest rate on the borrowed amount. On a $300k bridge loan at 9%, expect roughly $2,250 monthly.
Yes, though the underwriting gets stricter. Lenders want to see rental income potential and a clear exit strategy beyond just selling your current property.
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.