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Bridge Loans in Santa Cruz
Santa Cruz real estate moves fast when inventory is tight. Waiting for your current home to sell often means losing the property you want.
Bridge loans give you buying power before your sale closes. This matters in competitive coastal markets where cash-equivalent offers win.
You need significant equity in your current property—typically 30% minimum. Lenders combine both properties when calculating loan-to-value ratios.
Most bridge lenders require credit scores above 660. Income verification is lighter than traditional loans since the exit strategy is your pending home sale.
Bridge loans come from private and non-QM lenders, not conventional sources. Each has different appetite for Santa Cruz coastal properties versus inland areas.
Rates run 7-12% depending on your equity position and credit. Expect points and fees totaling 2-4% of the loan amount.
I only recommend bridge loans when you have a solid listing agreement and realistic pricing. Santa Cruz sellers who overprice their existing home end up stuck with two mortgages.
The best scenario is when you're upgrading within Santa Cruz County. Same market conditions help both transactions close predictably.
Hard money loans fund faster but cost more—useful for investment properties. Bridge loans are structured for owner-occupied transitions with better rates.
Some borrowers use a HELOC instead, but those require monthly payments and won't fund the full gap. Bridge loans are designed specifically for this timing problem.
Santa Cruz coastal properties typically appraise well for bridge lenders. Westside and beach areas get better loan terms than mountain or rural locations.
The seasonal market affects timing. Listing your current home in spring or summer gives you more buyer traffic while your bridge loan runs.
Most bridge loans run 6-12 months. Extensions are available but expensive—plan to sell your current home within the original term.
Most lenders require an active listing agreement. They want proof you're serious about selling, not just accessing equity.
You'll pay extension fees or refinance into a traditional mortgage. Some borrowers convert to a HELOC on the original property.
Bridge loans are typically interest-only. You'll pay that plus your new mortgage until the old home sells.
If losing your ideal property costs more than 6-9 months of bridge interest, yes. Run the math on what you'd pay for a lesser home.
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.