Question 1

How quickly can I close on a bridge loan in Morro Bay?

Accepted Answer

Bridge loans typically close in 2-3 weeks, sometimes faster with portfolio lenders. This speed advantage helps you compete for desirable coastal properties that receive multiple offers.

Question 2

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

Accepted Answer

Most lenders offer extensions for 3-6 months with additional fees. Some borrowers refinance into longer-term financing if needed, though this depends on qualifying with both mortgages.

Question 3

Can I get a bridge loan on a vacation property or investment property?

Accepted Answer

Yes, bridge loans work for various property types including second homes and investment properties. Requirements may differ slightly from primary residence bridge loans.

Question 4

Do I need to make payments on both my old mortgage and bridge loan?

Accepted Answer

Yes, you'll carry both payments during the bridge period. Most bridge loans offer interest-only payments to minimize the financial burden during this transition.

Question 5

Are bridge loans only for buying and selling simultaneously?

Accepted Answer

While that's the primary use, some borrowers use bridge loans for renovations before selling or to access equity quickly for other time-sensitive opportunities.

Bridge Loans in Morro Bay: Fast Financing for Coastal Property Transitions