Question 1

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

Accepted Answer

Most lenders offer 6-month extensions with additional fees. Some borrowers refinance the bridge loan into a rental property mortgage if the sale timeline extends.

Question 2

Can I use a bridge loan for a Grover Beach investment property?

Accepted Answer

Bridge loans work for both owner-occupied and investment purchases. Investment property bridge loans typically require higher equity and carry slightly higher rates.

Question 3

How much equity do I need in my current property?

Accepted Answer

Most lenders require 30% minimum equity after accounting for existing liens. Higher equity positions unlock better rates and terms.

Question 4

Do bridge loans require appraisals on both properties?

Accepted Answer

Yes. Lenders order appraisals on your current property and the Grover Beach home you're purchasing to confirm combined loan-to-value ratios.

Question 5

What closing costs should I expect on a bridge loan?

Accepted Answer

Expect 2-4% of loan amount for origination, appraisals, and title fees. Bridge loans often have higher upfront costs but save opportunity cost from missed purchases.

Bridge Loans in Grover Beach: Fast Capital Between Property Transactions