In 2026, California bridge loans generally require: 65–80% LTV, rates of ~9.5–11% (residential) or ~8–14.5% (investor/commercial), 1.5–3 points, interest-only terms of ~11–24 months with a balloon, meaningful equity, 650+ credit, and a clear exit (sale or refinance). Figures are illustrative for 2026.
The core numbers (2026)
| Requirement | Typical 2026 range* |
|---|---|
| LTV | 65–80% (residential higher; investor 65–75%) |
| Rate — residential | ~9.5–11% |
| Rate — investor / commercial | ~8–14.5% (by risk & leverage) |
| Points | ~1.5–3 |
| Term | ~11–12 mo residential; 12–24 mo commercial |
| Payment structure | Interest-only + balloon |
| Credit | Typically 650+ |
| Equity / down | Meaningful equity; investors ~20–35% |
| Reserves (investor) | 6–12 months of debt service |
| Close | ~7–30 days |
*Illustrative for 2026; set by individual lenders and vary by property, borrower, and deal. Not an offer. See how rates price →
Two kinds of bridge loan — different requirements
Buy-before-you-sell (homeowner)
- Borrow against your departing home's equity
- Up to ~70–80% LTV of that property
- ~11-month term; repaid when the home sells (often 3–6 months)
- Often no prepayment penalty
- Exit = the sale of your current home
Investor / transitional (value-add)
- First-lien on a transitional property
- 65–75% of as-is value (some ARV/LTC-based)
- 12–24 month term; interest-only
- 6–12 months reserves; experience preferred
- Exit = sale or refinance (e.g. DSCR)
The exit-strategy requirement
As with all short-term financing, the exit is non-negotiable — the balloon will come due:
Sale of the existing property
The homeowner's classic exit — the departing home sells and the bridge is paid off through escrow.
Refinance into permanent financing
The investor's route — stabilize, then refinance into a long-term loan such as a DSCR or conventional mortgage.
Take out a construction or perm loan
Bridge-to-perm on a project that will qualify for permanent financing once complete.
Documents you need
| Document | Why |
|---|---|
| Property details / purchase contract | Defines the deal & value |
| Proof of equity in the pledged property | Sizes the loan |
| Proof of funds / reserves | Carry & contingencies |
| Exit documentation (listing or refi plan) | Confirms repayment path |
| Entity docs (investor) | Business-purpose vesting |
| Appraisal or BPO | Confirms value for LTV |
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.