I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.
Bridge Loans in California: How to Buy Your Next Home Before Selling Your Current One
A bridge loan lets you buy your next California home before selling your current one — eliminating the stress of timing two transactions simultaneously. In competitive markets like Marin County where contingent offers are often rejected, bridge financing gives you the power to make a non-contingent offer while your existing home is still on the market.
How Bridge Loans Work
A bridge loan is a short-term loan — typically 6 to 12 months — secured by your existing home’s equity. The lender advances funds to purchase the new property while your current home is still on the market. When your current home sells, the proceeds pay off the bridge loan. Most bridge lenders advance 70–80% of your current home’s value minus any existing mortgage balance. Example: Marin County home worth $1.8M with $400K remaining mortgage. Available bridge: $1.8M × 75% = $1.35M − $400K = $950K. That $950K becomes your down payment on the next home — no need to sell first.
Bridge Loan Costs in California
Bridge loans carry higher rates than conventional mortgages — they’re short-term by design. On a $500K bridge held for 4 months, the interest cost reflects the temporary financing nature of the loan. That’s real money, but for Marin buyers where making a non-contingent offer could mean winning in a multiple-offer situation, the math often favors the bridge. The bridge loan cost is essentially the premium you pay for timing certainty and offer competitiveness — compare it to what you’d lose in negotiating power by making a contingent offer.
How to Structure a Bridge Loan Offer in Marin County
Bridge loan buyers have a structural advantage in Marin’s market: they can make non-contingent offers. Listing agents and sellers know this — a non-contingent bridge loan offer is treated differently than a financed offer with a sale contingency, even at the same price. When structuring an offer with bridge financing, have your bridge loan pre-approved before you start shopping. The lender should have reviewed your existing home’s value, confirmed your equity, and issued a conditional approval. This lets your broker write a financing letter stating that your financing is approved subject only to property appraisal and title review on the new home — nearly as strong as a cash offer. A vague “bridge loan pre-qualification” letter helps less than you’d think; a specific, lender-signed conditional approval changes how your offer is evaluated.
Alternatives to Bridge Loans
HELOC: If you have an existing HELOC on your current home, you may be able to use available credit for the down payment without a formal bridge loan. HELOCs have lower rates but require existing available credit and lender approval for simultaneous use during a purchase. Contingent offer: In some markets and situations, a well-structured contingent offer is acceptable. In Marin County’s most competitive pockets, contingent offers are frequently rejected. Buy-before-sell programs: Fintech companies have expanded programs that purchase the new home and sell it to you, or provide bridge-like financing with a guaranteed buyout of your existing home. These programs may suit some California buyers who prefer a managed solution over a traditional bridge loan.
Frequently Asked Questions
How does a bridge loan work in California real estate?
A California bridge loan is a short-term loan (typically 6–12 months) secured by your existing home’s equity. The lender advances up to 70–80% of your current home’s value, minus any outstanding mortgage balance, and you use those funds as the down payment on your next home. You close on the new home without selling the old one first. When your existing home sells, the proceeds repay the bridge loan. Bridge loans are common in Marin County and the Bay Area, where sellers often reject contingent offers, and the ability to make a clean non-contingent offer is a significant competitive advantage.
What are the requirements to get a bridge loan in California?
California bridge loan requirements vary by lender but generally include: sufficient equity in your current home (most lenders require 20–30% equity remaining after the bridge advance), a credit score of 680–720+, ability to qualify for carrying both the existing mortgage and the new mortgage simultaneously (even though the bridge is short-term), and a realistic plan to sell the existing property within the bridge term. Most bridge lenders want to see a marketable property with a clear sales timeline. A broker who specializes in California bridge financing can identify lenders whose programs fit your specific equity and income picture.
Is a bridge loan a good idea for a Marin County move-up buyer?
For Marin County move-up buyers, a bridge loan often makes strong financial sense because the competitive advantage of making a non-contingent offer can be decisive. In Marin’s multiple-offer environment, a contingent offer is frequently rejected outright or accepted only at a significant price concession. The bridge loan cost — typically a few months of interest on the bridge amount — is often less than the price premium you’d pay in a contingent offer (if accepted at all) or less than the rental costs of selling first and renting temporarily. Run the numbers with your broker: compare bridge loan costs to the realistic cost of the contingent alternative in your target price range.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | Licensed since 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
