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Bridge Loans in Lemon Grove
Lemon Grove's modest inventory makes timing tricky when you're selling one home to buy another. Bridge loans let you compete with cash offers while your current property lists.
Most Lemon Grove sellers need 30-60 days to close after accepting an offer. A bridge loan keeps you from losing your next home while you wait for that equity.
Lenders approve bridge loans based on your combined equity in both properties. Most require 20-30% equity in your current Lemon Grove home plus proof you can carry two mortgages temporarily.
Credit requirements run 620-680 minimum depending on the lender. You'll need an active listing or solid exit strategy showing how you'll pay off the bridge loan.
Bridge loans come from portfolio lenders and specialty finance companies, not Fannie Mae or Freddie Mac. Rates typically run 3-5 points above conventional mortgages.
We access 15-20 bridge lenders with different appetites for San Diego County deals. Some cap at $1M, others go to $3M. Terms and speed vary wildly.
Bridge loans cost more than you think. Factor in origination fees of 1-2%, monthly interest around 8-12%, and possible prepayment penalties.
Your best move: get bridge loan approval before listing your Lemon Grove home. Then price aggressively to sell fast and minimize carrying costs on expensive short-term debt.
Hard money loans fund faster but cost even more. Construction loans work if you're building, not buying existing homes. Home equity lines take weeks and disappear once you sell.
Bridge loans beat contingent offers in competitive markets. Sellers hate financing contingencies. A bridge loan turns you into a non-contingent buyer.
Lemon Grove's price point attracts first-time buyers who often make contingent offers. Your bridge-funded offer stands out when competing against those.
San Diego County sees bidding wars even in slower markets. Bridge financing lets you move fast when the right property hits. Waiting to sell first means you miss good deals.
Most bridge lenders fund in 10-21 days. We've closed deals in 7 days when borrowers had all documents ready and strong equity positions.
Most lenders offer 6-month extensions at a fee. You'll pay another point and higher monthly interest. Price your home right from day one.
Some lenders approve before listing, but rates run higher. Having an active listing and realistic price gets better terms and approval odds.
Most bridge loans are interest-only and can be deferred until closing. You might pay just your existing mortgage until one property sells.
Lenders want 20-30% equity minimum. Higher equity unlocks better rates and larger loan amounts for your next purchase.
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.