Question 1

What happens if my home doesn't sell before the bridge loan expires?

Accepted Answer

Most lenders offer extensions for 3-6 months with additional fees. You'll pay extension costs plus ongoing interest. Some borrowers refinance into a traditional mortgage as a backup plan.

Question 2

Can I get a bridge loan if my current home needs repairs?

Accepted Answer

Yes, but lenders reduce the loan amount based on your home's as-is value. You'll need more equity to qualify since they account for repair discounts in their underwriting.

Question 3

How much does a bridge loan cost in total?

Accepted Answer

Expect origination fees of 1-2% plus interest rates 2-4% above conventional mortgages. On a six-month loan, total costs run 4-6% of the loan amount including fees and interest.

Question 4

Do I need to make payments during the bridge period?

Accepted Answer

Most bridge loans are interest-only with payments due monthly. Some lenders defer all payments until your home sells, but charge higher rates for that structure.

Question 5

Can I use a bridge loan for investment property purchases?

Accepted Answer

Yes, but you'll need more equity and reserves than owner-occupied transitions. Lenders view investor bridge loans as higher risk and price them accordingly.

Bridge Loans in Woodlake: Fast Financing When Timing Matters