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Atherton homeowners typically need bridge financing when upgrading within San Mateo County's ultra-luxury tier. Most deals involve properties worth $5M-$25M where timing the sale and purchase perfectly isn't realistic.
Bridge loans solve the coordination problem when you've found your next estate but haven't closed on your current one. This financing matters more in Atherton than most markets because these properties take longer to sell and buyers rarely accept contingent offers.
Bridge lenders focus on combined equity, not W-2 income. You need 30-40% equity in the property you're selling plus enough down payment for the new purchase. Credit scores matter less than asset position.
Most Atherton borrowers use these loans with 50%+ equity in their existing home. Lenders base approval on the exit strategy—how you'll pay off the bridge once your property sells. Strong comparables and realistic pricing help.
About 40 lenders in our network write bridge loans above $2M in San Mateo County. Portfolio lenders dominate this space because these loans don't fit agency guidelines. Rates vary wildly based on loan size and property type.
Expect rates 2-4 points above conventional mortgages as of February 2026. The cost makes sense when you'd otherwise lose your dream property or sell under duress. Origination fees run 1-2% on loans this size.
Bridge loans work when you have a clear exit and timeline. They don't work when you're hoping to sell an overpriced property. Lenders want to see realistic comps and a listing plan before funding.
The biggest mistake is underestimating how long your Atherton property will take to sell. Build in extra months beyond your agent's estimate. Missing the bridge loan maturity date gets expensive fast with extension fees and rate increases.
Bridge loans beat HELOC or home equity loans when you need the full equity from your current home for the down payment. Hard money loans cost more but close faster if you're in a multiple-offer situation.
Construction loans serve a different purpose but sometimes overlap. If you're building new while selling your Atherton home, some lenders combine bridge and construction financing into one package at better rates than separate loans.
Atherton properties carry higher appraisal scrutiny because fewer sales comparables exist at the upper price bands. Lenders often require two appraisals on homes above $10M. This adds time to the approval process.
San Mateo County transfer taxes run 1.1% in most areas. Factor this into your bridge loan budget along with Atherton's property tax rate. The carrying costs on a $10M bridge loan run $80K-$100K monthly between interest and property expenses.
Most lenders offer $1M-$20M based on 75% combined LTV across both properties. Your existing equity and new purchase down payment determine the final amount. Rates vary by borrower profile and market conditions.
Yes, you pay interest on the bridge loan plus any existing mortgage on your current home. Some programs defer bridge payments until sale or roll interest into the loan balance to reduce monthly outflow.
Most lenders offer 6-12 month extensions at 0.5%-1% fee per month plus higher interest rates. If you can't extend or pay off the loan, the lender can foreclose on both properties securing the debt.
Yes, most bridge lenders focus on asset position rather than income. They underwrite based on equity, exit strategy, and property values. Bank statements showing reserves help but W-2s aren't typically required.
Figure 10-15 days with complete documentation and cooperative appraisers. Luxury properties sometimes take 21 days due to appraisal complexity. Hard money alternatives close in 7 days if speed matters most.
Bridge Loans in Atherton