Question 1

How fast can I get bridge financing in Palo Alto?

Accepted Answer

Most bridge loans close in 10-14 days with complete documentation. Some lenders can fund in 7 days if your equity position is strong and paperwork is ready.

Question 2

What happens if my home doesn't sell during the bridge term?

Accepted Answer

You'll need to extend the loan or refinance into long-term financing. Extensions cost 2-3 points typically, so price your home realistically from the start.

Question 3

Can I use bridge financing if I'm buying new construction?

Accepted Answer

Yes, but timing gets tricky with builder delays. Some lenders offer 12-month terms specifically for new construction scenarios where completion dates shift.

Question 4

Do bridge lenders require my current home to be listed?

Accepted Answer

Most want to see an active listing or signed listing agreement. A few lenders will approve before listing if you have extremely strong equity—think 50%+ LTV.

Question 5

Are bridge loan interest payments tax deductible?

Accepted Answer

Consult your tax advisor, but generally yes if the bridge loan is secured by your primary residence. Documentation requirements differ from standard mortgages.

Question 6

Can I get a bridge loan with pending stock options?

Accepted Answer

Some lenders consider vested RSUs or stock options as part of your exit strategy. Unvested equity typically doesn't count toward qualification or reserves.

Bridge Loans in Palo Alto: Fast Financing Between Properties