Bridge Loans in San Francisco & Bay Area

North Coast Financial is a residential bridge loan lender providing financing in the San Francisco Bay Area and throughout California. With over 40 years of private lending experience, North Coast Financial provides fast approvals and funding, low rates and fees and excellent customer service.

Bridge loans allow homeowners to access the equity in their current home in order to help purchase their new primary residence. This prevents the need to sell the existing home first and move twice. Bridge loans also allow the home owner to submit an offer on a new property without it being contingent on first selling the existing property.

Residential bridge loans are special short-term type of loan that do not have the same debt to income requirements as other traditional loans.  This is especially helpful for seniors who are retired and don’t have current full-time income.

Contact North Coast Financial now for a free bridge loan consultation.

San Francisco Bridge Loans

San Francisco bridge loans allow homeowners to quickly acquire a new primary residence without the need to first sell their existing home. They do not require the same type of strict debt to income ratio scrutiny as most traditional bank loans. Bridge loan approvals usually take 1-2 days while in some cases they can be obtained same day. Once approved, bridge loan funding takes 2-2.5 weeks depending on the property used as collateral for the loan.

Bridge loans terms are typically 11 months as they must be less than 12 months in order to qualify as a residential bridge loan. This is often plenty of time to sell an existing property or refinance the new property into a long-term traditional loan if needed.

San Francisco Bridge Loan Lenders

Experienced residential bridge loan lenders can provide flexible financing options based on the needs of the borrower:

• A bridge loan can be secured against the existing home to pull out the needed cash to purchase the new property
• A bridge loan can be secured against the new property if the borrower has a sufficient down payment for the purchase
• If needed, a bridge loan can be secured against the existing home AND an additional bridge loan can be secured against the new property being purchased

Bridge loan lenders are able to provide 2 different loans on 2 different properties if needed as bridge loans don’t have to follow the same debt to income ratio 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 loans to purchase or refinance commercial real estate. They are typically used to either quickly purchase a new property or refinance an existing property to help fund the purchase of a new property. They are commonly used when a real estate owner doesn’t have the liquidity but has sufficient equity in an existing property. Once the new property is secured, the existing property can be sold to pay off the commercial bridge loan.

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

Bridge Loan Requirements

Bridge loans have far fewer requirements than traditional owner occupied loans. This makes the bridge loan application and funding process quick and easy compared to bank loans.

Equity in Property – A bridge loan lender is primarily concerned with the value of the real estate being used as collateral for the bridge loan as well as the borrower’s equity in real estate. Sufficient equity in the property allows the bridge loan lender to quickly provide financing to the borrower.

Financial Strength – The borrower must show they have the financial strength to take care of the holding costs (monthly payment, taxes, insurance, etc.) until the bridge loan can be repaid. The lender may require some form of income documentation such as a tax returns, W2s, or a bank statement, but an extensive underwriting process is not required.

Read More: How to Qualify for a Bridge Loan