Question 1

What happens if my current home doesn't sell in time?

Accepted Answer

Most bridge loans allow extensions for 3-6 months at a fee. We also arrange permanent financing to pay off the bridge if needed.

Question 2

Can I get a bridge loan with a mortgage on my current home?

Accepted Answer

Yes, as long as combined debt doesn't exceed 80% of your current home's value. We calculate total loan-to-value across both properties.

Question 3

How much cash do I need at closing?

Accepted Answer

Typically 10-20% down on the new property plus closing costs. The bridge loan covers the rest until your home sells.

Question 4

Do bridge loans require an appraisal?

Accepted Answer

Yes, lenders appraise both properties. Your current home value determines how much you can borrow against your equity.

Question 5

What's the typical interest rate on bridge loans?

Accepted Answer

Rates vary by borrower profile and market conditions. Most fall 2-4% above conventional rates, reflecting the short-term risk.

Bridge Loans in Hillsborough: Buy Before You Sell