Bridge Loans in San Diego

North Coast Financial is a residential bridge loan lender based in San Diego, California. With over 40 years of experience providing private lending, North Coast Financial delivers quick approvals, fast funding and competitive rates and fees with professional customer service.

Residential bridge loans are helpful for homeowners who need to access equity in their current primary residence to purchase a new primary residence. Bridge mortgage loans prevent the need for having to sell the existing home first and move twice. A bridge loan can also strengthen the homeowner’s offer on a new property as the offer would not be contingent on selling the homeowner’s existing home.

Residential bridge loans do not have the same debt to income (DTI) requirements as other traditional loans as they are a special short-term type of loan.  Not having a DTI requirement is beneficial for retired seniors who don’t have high levels of annual income. The equity in the borrower’s home allows for qualification for the bridge loan instead of their current income.

Contact North Coast Financial for a free San Diego bridge loan consultation.

San Diego Bridge Loans

San Diego bridge loans allow a homeowner to purchase a new primary residence prior to selling their primary residence. Residential bridge loans do not have the same type of debt to income ratio (DTI) requirement as traditional owner occupied loans. Bridge loan approvals are typically completed within 1-2 days. In some cases loan approval can be obtained the same day the completed application is received. Once the loan process begins, bridge loan funding takes 2-2.5 weeks.

Residential bridge loans terms are typically 11 months as bridge loans for a primary residence cannot be longer than 12 months. 11 months should be a sufficient amount time to sell the existing primary residence or refinance the new primary residence into a long-term traditional loan depending on the situation.

San Diego Bridge Loan Lenders

Experienced San Diego residential bridge loan lenders can provide fast and flexible funding options based on the borrower’s needs:

• The existing primary residence can be used as collateral to raise the needed cash to purchase the new primary residence
• The new primary residence being purchased can be used as collateral if the borrower has the necessary down payment for the purchase
• If needed by the borrower, a bridge loan can be secured against the existing primary residence to pull out cash AND an additional bridge loan can be secured against the new primary residence being purchased

Bridge loan lenders can fund 2 loans on 2 properties if needed by the borrower. Bridge loans don’t have the same debt to income ratio requirements as traditional long-term loans.

Bridge Loan Rates

Bridge loan rates are commonly higher than long-term traditional loan rates since bridge loans are only a short-term, specialized financing option. Bridge loan rates are currently in the range of 9.95-10.95%. Once the property encumbered with the bridge loan is sold, the loan is automatically paid off through the escrow process.

Bridge Loans for Commercial Property

A commercial bridge loan is a short-term financing tool used to refinance or purchase commercial real estate. Commercial bridge loans are typically used when fast funding is the priority. The short-term bridge loan allows the borrower to acquire a new property quickly (or refinance) and then gives them time to put a long-term loan into place. They are also used when a real estate investor doesn’t have the needed liquidity to purchase a new property but does have plenty of equity in their existing property.

In general, commercial loans typically have a lower loan to value ratio (LTV) compared to residential loans. Commercial lenders may also require additional documentation as commercial loans are more complex than loans for residential property.

Requirements for Residential Bridge Loans

Residential bridge loans have less requirements than traditional residential loans. Fewer requirements means the bridge loan approval and funding process is quick and easy compared to bank loans.

The main requirement for a bridge is the borrower’s equity in the existing property. Significant equity in the property allows the bridge loan lender to quickly provide approval and financing to the borrower.

The borrower must also demonstrate they have the financial strength to handle the holding costs (monthly payment, taxes, insurance, etc.) of the property and loan until the bridge loan can be paid off. Lenders may require a simple form of income documentation such as a tax returns or a bank statement but a thorough underwriting process is not necessary.