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Bridge Loans in Capitola
Capitola's coastal inventory moves fast. Bridge loans let you secure a new property before selling your current home.
Most Capitola buyers face timing gaps between closing dates. A bridge loan covers that gap, typically 6-12 months.
These loans work best when you have confirmed equity and a clear exit strategy. Santa Cruz County homes rarely sit long once priced right.
You need 15-20% equity in your current property minimum. Most lenders want to see the existing home already listed or under contract.
Credit requirements sit around 620-640 for most bridge lenders. Expect combined loan-to-value ratios between 75-80% across both properties.
Income verification exists but matters less than equity position. Lenders focus on your ability to carry both payments short-term.
Most traditional banks don't touch bridge loans. You're looking at specialty lenders and portfolio programs.
Rates run 8-12% currently, with origination fees between 1.5-3 points. The cost reflects the short timeline and higher risk.
Some lenders offer interest-only payments during the bridge period. Others allow deferred payments until your existing property sells.
Approval speed varies wildly. Best programs close in 7-14 days. Others take 30+ days, which defeats the purpose.
I only recommend bridge loans when your current home will sell within 90 days. Longer than that, the math gets ugly fast.
Capitola sellers often overestimate their home's appeal. Get a broker price opinion before committing to bridge financing.
The best bridge scenarios involve downsizing or lateral moves within Santa Cruz County. Upsizing creates payment stress most borrowers underestimate.
Consider a home equity line instead if you have 40%+ equity. HELOC rates beat bridge loan rates by 4-6 points right now.
Hard money loans serve investors and rehabs. Bridge loans serve homeowners in transition. The underwriting focuses on different risks.
Interest-only mortgages spread the low payment over 10 years. Bridge loans concentrate everything into 6-12 months.
A HELOC requires no monthly payment on unused funds. A bridge loan charges interest from day one on the full amount.
Capitola's compact housing stock means limited inventory any given month. Bridge loans give you first-mover advantage when the right property hits market.
Many Capitola homes need estate settlement or family transitions. Sellers appreciate buyers who can close quickly without sale contingencies.
Santa Cruz County has slower permit timelines if your bridge involves any property improvements. Factor that into your exit timeline.
Coastal properties can sit through winter if priced aggressively. Spring and summer create faster exit opportunities for bridge borrowers.
Fastest programs close in 7-10 business days with clean title and confirmed equity. Most take 14-21 days with standard documentation.
You either refinance into permanent financing, extend the bridge at higher cost, or sell under pressure. None are ideal outcomes.
Most bridge lenders want owner-occupied transitions. For investment, hard money loans make more sense with better terms.
You'll carry your existing mortgage plus bridge loan payments. Some lenders defer bridge payments until sale, but you pay more in interest.
Minimum 15-20% after existing liens. Most competitive programs require 25%+ equity for better rates and terms.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.