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San Mateo's competitive market moves fast. Sellers field multiple offers within days. A bridge loan lets you make a non-contingent offer on your next home while your current property lists.
Most San Mateo buyers use bridge financing for 3-12 months. You close on the new place, then pay off the bridge loan when your old home sells. Rates vary by borrower profile and market conditions.
Bridge Loans in San Mateo
You need significant equity in your current home. Most lenders want 20-30% equity minimum. They'll also check that you can afford both mortgages temporarily if your old home takes longer to sell.
Credit requirements sit around 660-680 for most programs. Some lenders require the old home already listed. Others will fund before you list, but those programs cost more.
Local decision guide
Use this guide to connect bridge loans eligibility, lender expectations, and local market factors before comparing payment options in San Mateo.
San Mateo's competitive market moves fast. Sellers field multiple offers within days. A bridge loan lets you make a non-contingent offer on your next home while your current property lists.
Most San Mateo buyers use bridge financing for 3-12 months. You close on the new place, then pay off the bridge loan when your old home sells. Rates vary by borrower profile and market conditions.
You need significant equity in your current home. Most lenders want 20-30% equity minimum. They'll also check that you can afford both mortgages temporarily if your old home takes longer to sell.
Bridge loans live in the non-QM space. We work with about 15 lenders who actively write them. Terms vary wildly by lender—some cap at 75% combined loan-to-value, others go to 80%.
Newer products now accept alternative assets as reserves. Some borrowers qualify using verified crypto holdings alongside traditional funds. This matters if your equity is tied up in digital assets.
Bridge loans cost more than standard mortgages. Expect rates 2-4% above conventional loans. Most charge origination fees between 1-2 points. You're paying for speed and flexibility.
The key question: can your offer win without a sale contingency? In San Mateo, that often makes the difference. I've seen buyers lose three homes before finally using bridge financing to compete.
Hard money loans work for properties needing renovation. Bridge loans work for livable homes you're upgrading from. Interest-only options exist for both, but bridge terms are cleaner for owner-occupied transitions.
Some buyers consider home equity lines instead. HELOCs take 30-45 days to close and need the old home free of liens. Bridge loans close faster and work with existing mortgages.
San Mateo properties sell within 30-45 days in normal conditions. Your bridge loan timeline should account for listing prep, market time, and escrow. Build in 90-120 days minimum even if you're optimistic.
Peninsula buyers often bridge between single-family homes in different school districts. The timing crunch hits hardest in summer when families want to move before fall semester. Plan accordingly.
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.
You refinance the bridge loan into permanent financing or extend the term. Most lenders offer 6-12 month extensions at higher rates.
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.
It depends on the program. Some bridge loans defer payments until your old home sells. Others require interest-only payments monthly.
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.