Rates ~9.5–11% residential / ~8–14.5% investor · LTV 65–80% · Term ~11–24 mo, interest-only + balloon · Close ~7–30 days · Credit 650+ · Exit = sale or refinance · often no prepay penalty. Detail on Requirements & Rates.
The basics
What is a bridge loan?
Short-term financing that bridges the gap between buying and selling. Homeowners buy a new home before the old one sells, borrowing against existing equity; investors use it for transitional property.
How does buy-before-you-sell work?
Borrow against your current home's equity, use it toward the next purchase, move in, then sell the old home — the sale pays off the bridge, often through escrow.
Who uses bridge loans?
Move-up homeowners in competitive markets, and investors financing value-add or transitional deals.
Why not just sell first?
In a fast market you risk losing the home you want, or being stuck renting between homes. A bridge lets you buy first.
Are bridge and hard money the same?
They overlap. "Bridge" is the purpose (span a gap); hard money is the asset-based structure. Many bridge loans are hard money.
Cost & terms
What are 2026 bridge rates in California?
Residential ~9.5–11%; investor/commercial ~8–14.5% by risk and leverage. Higher than conventional because they're short-term.
How much can I borrow?
Usually 65–80% of the pledged property's value, minus any existing mortgage. Residential reaches the higher end.
How many points?
Typically 1.5–3 points, plus standard third-party fees (escrow, title, recording).
How long is the term?
Residential ~11–12 months (often repaid in 3–6 when the home sells); commercial 12–24 months.
Do rates depend on LTV?
Heavily — a 65% vs 75% LTV deal can differ by 1–2 percentage points. Lower LTV, lower rate.
Any prepayment penalty?
Often none on residential CA bridge loans, which suits the quick payoff. Confirm per lender.
Payments & the two-home question
Will I pay two mortgages?
Possibly, for the overlap between buying and selling. Some structures defer or roll payments to minimize it.
Are payments interest-only?
Usually — you pay interest during the term and repay principal via the balloon when the old home sells.
What if my home takes longer to sell?
You carry the bridge longer, adding cost; some lenders offer extensions. Price the home realistically and keep reserves.
How much cash do I need?
Enough for points, closing costs, and reserves to carry payments until the sale. We'll size it to your situation.
Do I need income verification?
Less than conventional — bridge is equity-based — though lenders review credit and, for recourse loans, net worth.
Exit & alternatives
What's my exit?
Homeowners: the sale of the departing home. Investors: sale or refinance into a DSCR/conventional loan.
How fast can it close?
Often 7–30 days; some private investor deals in 5–7. Fast enough to compete with cash.
Bridge vs HELOC?
A HELOC can be cheaper but must usually be opened before you list; a bridge is built for the transition.
Bridge vs conventional?
Conventional is cheaper but slow and contingent on your sale; a bridge removes the contingency.
Can investors refinance out of a bridge?
Yes — stabilize the property, then refinance into a lower-rate DSCR or conventional loan.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.