Bridge Loans in Los Angeles

North Coast Financial is a residential bridge loan lender providing financing in Los Angeles and throughout California. North Coast Financial has over 40 years of private lending experience, provides fast approvals and funding, low rates and fees and 5-Star customer service.

Bridge loans allow homeowners to quickly and easily leverage the equity in their existing primary residence in order to purchase a new primary residence. Bridge loans can prevent the need to first sell the existing home and then purchase the new home. Selling the existing home first results in the extra expense and hassle of moving twice instead of just once. Bridge loans have the benefit of allowing the home owner to submit an offer without the contingency of selling the existing property.

Residential bridge loans do not have the same debt to income (DTI) requirements as other traditional loans. Bridge loans are special type of short-term loan that doesn’t restrict the borrower to a specific DTI ratio. This is especially helpful for retired seniors who don’t have full-time employment for qualification.

Contact North Coast Financial for a complimentary bridge loan consultation.

Los Angeles Bridge Loans

Los Angeles bridge loans enable borrowers to purchase a new primary residence without first having to sell their existing primary residence. Bridge loans do not have the same type of strict debt to income ratio requirements as traditional loans. The bridge loan borrower is able to exceed the normal debt to income ratio (DTI) which allows borrowers to carry multiple loans simultaneously for a short period if needed. Approvals for bridge loans usually take 1-2 days and in some cases they can be received the same day the application is submitted. Once approved and the loan process begins, bridge loan funding takes approximately 2-2.5 weeks.

Residential bridge loans terms are 11 months as they must be less than 12 months to qualify as a residential bridge loan. 11 months is typically plenty of time to purchase the new primary residence and sell the existing primary residence.

Los Angeles Bridge Loan Lenders

Residential bridge loan lenders provide fast and flexible financing solutions based on what the borrower needs:

• The bridge loan can be secured against the existing primary residence to raise the cash to purchase the new primary residence
• The bridge loan can be secured against the new primary residence if the borrower has the needed down payment for the new purchase
• If needed, the bridge loan can be secured against the existing primary residence AND an additional bridge loan can be secured against the new primary residence being purchased

Experienced bridge loan lenders can provide 2 loans on 2 different properties if needed. Bridge loans don’t have to follow the same debt to income ratio (DTI) requirements.

Bridge Loan Rates

Bridge loan rates are typically higher than the current traditional loan rates as bridge loans are a specialized, short-term financing product. Current bridge loan rates are in the range of 9.5-10.5%. Once the property encumbered with the bridge loan is sold, the loan is automatically paid off through the escrow process.

Commercial Bridge Loans

Commercial bridge loans are short-term financing for purchasing or refinancing commercial real estate. The loans are commonly used to purchase a new property quickly or to refinance an existing property, usually for the purpose of funding the purchase of a new property. They are particularly helpful when a real estate owner doesn’t have the needed liquidity to purchase a new property but does have enough equity in an existing property. When the new property is purchased, the previous property is sold or refinanced to repay the commercial bridge loan.

Commercial loans have lower loan to value ratios (LTV) compared to residential. Lenders often require additional documentation as commercial loans are typically more complicated than residential loans.

Bridge Loan Requirements

Bridge loan requirements are much more relaxed compared to conventional bank loans. The bridge loan application and funding process is much faster and easier. The main requirements are:

Equity in Property – Bridge loan lenders are mainly focused on the value of the property used as collateral for the bridge loan and the borrower’s equity in that property. Significant equity allows the lender to approve the bridge loan and provide financing quickly.

Strength of the Borrower – The borrower must demonstrate show they have sufficient income or cash reserves to handle the holding costs (monthly payment, taxes, insurance, etc.) until the bridge loan is paid off. The lender may require a form of income documentation and a credit check but there isn’t a lengthy underwriting process.