I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
The “buy before you sell” strategy used to be reserved for wealthy cash buyers. Bridge loans democratize it — any California homeowner with significant equity can now submit a non-contingent offer and close in 7 days, regardless of whether their current home has sold. See also: California Bridge Loans and Bridge Loan HELOC — Bay Area.
Why Non-Contingent Offers Win in California
In California’s competitive markets, sellers routinely reject contingent offers even when they’re higher priced. A contingent offer means the deal can fall apart if your existing home doesn’t sell — too much uncertainty for most sellers. A bridge-funded non-contingent offer is as clean as cash. In tight-inventory markets like Marin, San Francisco, Silicon Valley, and Los Angeles, a non-contingent offer with 7-day close capability routinely beats contingent offers that are $50,000–$100,000 higher. The bridge loan premium pays for itself.
The Step-by-Step Process
Step 1: Get pre-approved for a bridge loan — takes 24–48 hours. The lender evaluates your existing property’s value and equity position. Step 2: Find your next property and submit a non-contingent offer. Your bridge pre-approval gives you credibility — you can close in 7–14 days. Step 3: Bridge loan closes, you buy the new property. Bridge funds cover the down payment or entire purchase. Step 4: List and sell your existing property. With no contingency pressure, you can price correctly and wait for the right buyer. Step 5: Use sale proceeds to repay the bridge loan. Done.
How Much Equity Do You Need?
Most bridge lenders require a combined LTV (new loan + existing mortgage) of no more than 75% of the departing property’s value. If your current home is worth $1.2M and has a $400,000 mortgage, you have up to $500,000 in bridge capacity (75% × $1.2M = $900,000 − $400,000 existing = $500,000). That $500,000 can fund the down payment on a property priced at $1.5M–$2M+ depending on the required down percentage.
Carrying Two Properties — What to Expect
During the bridge period, you’re making payments on your new home’s mortgage plus interest-only on the bridge loan. For most California homeowners, this runs 60–90 days — the time it takes to sell and close on the departing property. Bridge interest is typically 9–12% annually; on a $500,000 bridge for 90 days, that’s approximately $11,250–$15,000 in total interest. A small price for securing the right home in a competitive market without a contingency.
Ready to Buy Without Contingencies?
Call me and I’ll tell you exactly how much bridge capacity you have based on your current home’s value and mortgage balance — usually in the first 5 minutes of the conversation.
Frequently Asked Questions
How does a bridge loan let me buy a California home without selling mine first?
A bridge loan uses the equity in your current home as collateral to fund the down payment (or full purchase) of your next home — before your existing home sells. You close on the new property without any contingency attached to the offer. Once your existing home sells, typically within 60–90 days in most California markets, the sale proceeds pay off the bridge loan in full. During the bridge period you pay interest-only on the bridge balance. The key advantage is competitive: in California’s tight markets, a non-contingent offer closes deals that contingent offers lose — even when the contingent offer is higher priced, most sellers prefer the certainty of a clean close.
How much equity do I need in my current home to use a bridge loan?
Bridge lenders typically allow up to 75% of your current home’s value in total debt (existing mortgage + bridge loan). The bridge loan amount equals 75% of value minus your existing mortgage balance. Example: $1.2M home × 75% = $900,000 total capacity. Subtract $400,000 existing mortgage = $500,000 bridge loan available. You need meaningful equity — generally at least $300,000 after your existing mortgage for the strategy to make financial sense. Call me with your home’s estimated value and current mortgage balance and I’ll calculate your exact bridge capacity in the first conversation.
What happens if my existing home doesn’t sell during the bridge period?
Bridge loans typically have 6–18 month terms. If your property takes longer to sell than expected, most lenders offer extension options (for a fee — typically 0.5–1% of the loan amount). In the extremely rare case where the property doesn’t sell at all, you’d need to repay the bridge through other means or work out a resolution with the lender. In practice, well-priced California homes in most major markets sell within 30–90 days. The risk of a bridge loan is not that it won’t work — it’s that an unexpectedly long sales timeline increases your carrying costs. I help clients assess this risk based on their specific market and property before we proceed.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
