Question 1

How long does bridge loan approval take?

Accepted Answer

Most lenders close in 2-3 weeks with clean files. Expect slightly longer if you're still listing your current home or need appraisals on both properties.

Question 2

What happens if my old home doesn't sell?

Accepted Answer

You refinance the bridge loan into permanent financing or extend the term. Most lenders offer 6-12 month extensions at higher rates.

Question 3

Can I use a bridge loan for investment properties?

Accepted Answer

Yes, but most lenders price them higher for non-owner moves. Investor bridge loans typically require 25-30% equity minimum and cost 0.5-1% more.

Question 4

Do I make payments on both the old and new mortgages?

Accepted Answer

It depends on the program. Some bridge loans defer payments until your old home sells. Others require interest-only payments monthly.

Question 5

What if I already have an offer on my current home?

Accepted Answer

That strengthens your application. Some lenders reduce rates if you have a ratified contract on the old property with a close date within 60 days.

Bridge Loans in San Mateo: Buy Before You Sell Without Waiting