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Bridge Loans in Half Moon Bay
Half Moon Bay's coastal real estate market moves quickly when properties become available. Bridge loans provide the speed needed to secure a new property before selling your current one, particularly important in this competitive seaside community.
These short-term loans typically run 6-12 months, giving you breathing room to close on a new purchase while preparing your existing property for sale. This flexibility proves especially valuable in markets where timing between buying and selling rarely aligns perfectly.
Bridge loan approval focuses on your total equity position rather than traditional income documentation. Lenders typically require at least 20-30% equity in your current property and may lend up to 80% of its value combined with the new purchase.
Credit scores above 620 are generally required, though some lenders accept lower scores with stronger equity positions. The property being sold must be listed or ready to list, and you'll need a clear exit strategy showing how you'll repay the bridge loan.
Bridge loans come from specialized non-QM lenders rather than traditional banks. These lenders move faster and focus on property value and equity rather than extensive documentation. Rates vary by borrower profile and market conditions.
Working with a broker who maintains relationships with multiple bridge lenders gives you access to better terms and faster approvals. Different lenders specialize in different scenarios, whether you're buying up, relocating, or managing investment properties.
Interest-only payments during the bridge period keep your monthly costs manageable while you're effectively carrying two properties. Some programs offer delayed first payments, giving you extra time before obligations begin.
The biggest mistake Half Moon Bay buyers make is waiting until they find their new property before exploring bridge financing. Getting pre-approved for a bridge loan positions you as a cash buyer, dramatically strengthening your offer in competitive situations.
Consider the full cost picture: origination fees, higher interest rates, and potential extension fees if your property takes longer to sell. Budget for 3-6 months of bridge payments even if you expect to sell quickly, especially in Half Moon Bay's seasonal market.
Many borrowers don't realize bridge loans can cover both the down payment on the new property and closing costs, pulling all needed funds from their existing home equity. This keeps your liquid savings intact for moving expenses and home preparations.
Bridge loans differ from hard money loans in their assumption that you'll sell your current property rather than refinance or generate income. While hard money loans focus on investment strategy, bridge loans specifically address timing gaps for owner-occupants and movers.
Home equity lines of credit offer cheaper money but may not provide enough funds for a full down payment, and they require monthly principal payments. Bridge loans give you the full amount needed upfront with interest-only payments, better matching your transition period needs.
Construction loans serve a different purpose entirely, funding building projects over time. Interest-only loans reduce payments on your new mortgage but don't solve the down payment challenge that bridge loans address directly.
Half Moon Bay's coastal location creates a distinct selling season, with spring and summer months bringing more serious buyers. Your bridge loan timeline should account for this seasonality, potentially requiring longer terms if you're listing in fall or winter.
Properties in Half Moon Bay's coastal zones often require additional inspections and disclosures that can extend sale timelines. Factor these potential delays into your bridge loan planning and ensure your term length provides adequate buffer.
The city's appeal to Bay Area buyers means serious purchasers often come prepared with strong financing. Having bridge loan approval lets you compete effectively without contingencies, particularly important given the limited inventory in this desirable coastal community.
Most bridge loans close within 2-3 weeks once you've provided property documentation and appraisals. Some lenders can move faster if all paperwork is ready and the property values are clear.
Most lenders offer 6-month extensions for a fee, typically 0.5-1% of the loan amount. You'll need to show the property is actively marketed and priced appropriately to qualify for extensions.
Yes, but you'll need to demonstrate it's ready to list and provide a realistic timeline. Most lenders require listing within 30 days of bridge loan closing to ensure a clear exit strategy.
Bridge loans typically work best for primary residences, but some lenders handle investment property transitions. Expect higher rates and stricter equity requirements for non-owner-occupied properties.
Most lenders require 20-30% equity minimum. Combined loan-to-value across both properties typically can't exceed 80%, meaning you'll need substantial equity to fund your new purchase down payment.
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.