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Encinitas sits in San Diego County, where the median household income of $102,285 supports homes well into the $800,000 range. Bridge loans let you buy now and sell later without waiting for your current home's sale to close.
A bridge loan covers the gap between your new purchase and your old home's proceeds. You keep both properties briefly, then pay off the bridge when your sale closes.
7-14 days
Typical Closing Timeline
1-2% higher
Rate Premium vs. Conventional
15-20% minimum
Equity Requirement
1-2% of loan amount
Upfront Fees
Bridge Loans in Encinitas
Bridge loans require solid credit (typically 680+) and significant equity in your current home. Lenders want to see at least 20% equity available to borrow against, though some accept 15%.
San Diego County's median household income of $102,285 means most bridge borrowers are established homeowners with real estate already. The loan amount depends on your equity, not just your income.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in Encinitas.
Encinitas sits in San Diego County, where the median household income of $102,285 supports homes well into the $800,000 range. Bridge loans let you buy now and sell later without waiting for your current home's sale to close.
A bridge loan covers the gap between your new purchase and your old home's proceeds. You keep both properties briefly, then pay off the bridge when your sale closes.
Bridge loans require solid credit (typically 680+) and significant equity in your current home. Lenders want to see at least 20% equity available to borrow against, though some accept 15%.
Bridge lenders in California operate differently than traditional mortgage banks. They focus on speed and equity position, not credit scores or debt-to-income ratios.
Most bridge lenders are portfolio lenders or private firms. They hold loans on their own books rather than selling to investors, which lets them move fast and accept non-traditional borrowers.
Bridge loans make sense in Encinitas when you're competing in a hot market and your current home hasn't sold yet. If you have solid equity and can close in two weeks, a bridge removes the contingency that kills offers.
Bridge loans don't work if your current home is underwater or you have minimal equity. The lender needs collateral. If your sale is already in escrow, a traditional contingent offer costs less.
A bridge loan costs more than a traditional mortgage — expect 1-2% higher interest rates and upfront fees of 1-2% of the loan amount. But if the bridge lets you win an offer you'd otherwise lose, the cost is worth it.
A contingent offer (subject to selling your current home) costs nothing extra but loses to cash offers and clean sales. In Encinitas, that's often a deal-killer. Bridge loans buy you the certainty to compete.
Encinitas' coastal location and school district draw families and move-up buyers constantly. That competition means sellers want certainty — a bridge loan removes the contingency that makes your offer weaker than a cash buyer's.
The San Diego County market moves fast. Homes in desirable neighborhoods can receive multiple offers within days. A bridge loan lets you make a clean offer without waiting for your sale.
Bridge loans typically close in 7-14 days. Underwriting happens fast because lenders focus on equity, not credit. You can often close before your current home sells.
Yes, temporarily. You'll make interest-only payments on the bridge while your old home is in escrow. Once that sale closes, the bridge payoff comes from those proceeds.
You're responsible for the bridge loan balance. That's why lenders require solid equity — they need collateral. Most bridge terms run 6-12 months, giving you time to sell.
Yes, some lenders accept 15% equity, though terms are tighter. The more equity you have, the easier the approval. Lenders view equity as their safety net.
Expect 1-2% higher interest rates than conventional mortgages, plus 1-2% upfront fees. If the bridge wins you a $50,000 bidding war, the cost pays for itself immediately.