Question 1

How much can I borrow with a bridge loan in Elk Grove?

Accepted Answer

Most bridge lenders allow up to 80% combined loan-to-value across both properties. The exact amount depends on your existing home equity and the purchase price of your new property.

Question 2

What happens if my current home doesn't sell during the bridge loan term?

Accepted Answer

You can typically extend for a fee, refinance into permanent financing, or sell at a reduced price. Planning a realistic listing strategy upfront minimizes this risk.

Question 3

Do bridge loans require monthly payments?

Accepted Answer

Most bridge loans are interest-only during the term. Some lenders allow interest to accrue and get paid at closing, while others require monthly payments.

Question 4

Can I use a bridge loan for investment properties in Elk Grove?

Accepted Answer

Bridge loans primarily serve owner-occupied transitions. For investment properties, hard money loans or investor-specific financing typically works better and may offer more suitable terms.

Question 5

How quickly can bridge loan financing close in Sacramento County?

Accepted Answer

Experienced lenders can close bridge loans in 7-14 days with complete documentation. Complex situations may take longer, but speed remains a key advantage over conventional financing.

Bridge Loans in Elk Grove: Fast Financing for Property Transitions