Loading
Bridge Loans in Monterey
Monterey's tight coastal inventory makes bridge loans critical when you find the right property. Most sellers here won't wait 60 days for your current home to close.
The Peninsula's seasonal buyers—second-home shoppers and retirees—create windows of opportunity that standard financing timelines miss. Bridge loans let you act on that timing.
Properties in Monterey move differently than inland California markets. Oceanfront and historic district homes sell to cash buyers who don't need contingencies.
You need significant equity in your current property—typically 30% minimum. Lenders base the bridge loan on your existing home's value, not the new purchase.
Most bridge lenders want to see a listing agreement or sale contract on your current property. They're not funding indefinite holding periods.
Credit matters less than equity here. A 640 score works if you have 40% equity and a credible exit strategy for selling your existing home.
Expect to carry both mortgages temporarily. Lenders verify you can service both loans even if your property sits unsold for 6 months.
Bridge loans come from private lenders and specialty finance companies—not banks. Rates run 8-12%, and most lenders cap terms at 12 months.
Monterey deals involve higher loan amounts than most California markets. Not every bridge lender underwrites coastal property values accurately.
Expect origination fees of 1.5-3 points plus standard closing costs. This isn't cheap money—it's speed and flexibility priced accordingly.
We work with lenders who understand Peninsula valuations and won't lowball your existing property. That appraisal determines your borrowing power.
Bridge loans work in Monterey when you're moving up or laterally within the Peninsula. They rarely make sense for downsizing—just sell first.
The math breaks when your existing home needs work before listing. You'll pay bridge loan interest while renovating, which eats any market timing advantage.
Watch for exit fees if you pay off early. Some lenders charge 6 months interest minimum even if your property sells in 90 days.
I structure most Monterey bridges with interest-only payments. Carrying principal and interest on two mortgages here creates cashflow problems fast.
Hard money loans fund faster but cost more—think 10-14% rates. Use those for properties needing immediate work, not clean residential transitions.
Home equity lines seem cheaper until you realize most banks cap HELOC advances at 80% combined loan-to-value. Bridge lenders go higher on strong properties.
Sale contingencies preserve capital but kill most Monterey offers. Sellers pick the clean contract every time, even at 2-3% less.
Construction loans work if you're building, but they won't fund a purchase while you're still selling. Completely different use case.
Monterey's Coastal Commission regulations affect property values and sale timelines. Bridge lenders need to understand these complications when appraising your existing home.
The military presence at NPS and Defense Language Institute creates steady turnover. Bridge loans help military buyers relocate on Pentagon timelines.
Historic districts downtown have unique zoning that affects marketability. Your exit strategy needs to account for buyer pools restricted by preservation rules.
Tourism-driven short-term rental potential inflates some property values. Make sure your bridge lender appraises based on residential comps, not vacation rental income.
Most bridge lenders close in 10-15 days with clean title and appraisal. The limiting factor is usually getting your existing property appraised, not underwriting speed.
You'll need to refinance the bridge loan or sell at a loss. Some lenders offer 6-month extensions at higher rates, but that's not guaranteed.
Yes, but rates run 1-2% higher than primary residence bridges. Lenders want to see rental income or a flip strategy, not just equity access.
Most want a listing agreement within 30 days of closing. They're financing a transition, not bankrolling speculation on future appreciation.
Rates stay the same, but watch for prepayment penalties. Many lenders charge minimum 3-6 months interest regardless of payoff timing.
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.