Question 1

How quickly can I close with a bridge loan in Redwood City?

Accepted Answer

Many bridge lenders can close in 10-15 days once you have a purchase agreement. Some specialized lenders offer even faster timelines for strong borrowers. This speed makes bridge loans effective for competitive Redwood City offers.

Question 2

What happens if my current home doesn't sell before the bridge loan expires?

Accepted Answer

Most bridge loans include extension options, though they come with additional fees. Some lenders may require rate adjustments for extensions. Having a solid pricing and marketing strategy from the start minimizes this risk.

Question 3

Can I get a bridge loan if my current home isn't listed yet?

Accepted Answer

Yes, but lenders typically require you to list the property before or immediately after closing. They'll want to see a realistic pricing strategy and may require professional market analysis showing likely sale timeline.

Question 4

Are bridge loan interest payments tax deductible?

Accepted Answer

Interest may be deductible as mortgage interest, but consult your tax advisor. Rules vary based on how you use the properties and total mortgage debt. Tax treatment shouldn't drive your bridge loan decision alone.

Question 5

How does down payment work with bridge loans in expensive markets like Redwood City?

Accepted Answer

Bridge loans typically cover 80-90% of your current home's value, which can serve as your down payment on the new property. Combined loan-to-value ratios across both properties usually can't exceed 75-80%.

Bridge Loans in Redwood City: Fast Financing for Your Next Silicon Valley Move