A bridge loan in California is a short-term loan (6–12 months) that lets homeowners buy a new home before selling their current one — using existing home equity as collateral, typically at rates of 8–12%, allowing you to make a non-contingent offer in California’s competitive market.
Bridge Loans California — Buy Before You Sell
In California’s competitive real estate market — especially in the Bay Area, Marin County, and San Francisco — the biggest obstacle to buying your next home is often the one you already own. A bridge loan lets you tap your existing home’s equity to buy your new home first, without the pressure of selling first or making a contingent offer that sellers won’t accept.
What Is a Bridge Loan?
A bridge loan is short-term financing — typically 6 to 12 months — that uses your current home’s equity as collateral to fund the purchase of your next home. Once your existing home sells, you pay off the bridge loan. The result: you can move into your new home on your timeline, not the market’s.
Cross-Collateralization: How It Works
The most powerful bridge loan structure in California uses cross-collateralization — your existing home and your new home are both pledged as collateral on a single loan. This eliminates the need to sell first entirely. DiVita Home Finance structures these deals with specific portfolio lenders who understand Bay Area real estate values and move quickly enough to compete in non-contingent offer situations.
| Feature | Standard Bridge Loan | Cross-Collateral Bridge Loan |
|---|---|---|
| Collateral | Departing home only | Both homes pledged together |
| Down payment needed | Yes — from bridge proceeds | May be zero — equity covers it |
| Monthly payments | Interest-only on bridge | Interest-only or deferred |
| Timeline | Close new home first, sell later | Close new home first, sell later |
| Best for | Homes with significant equity | High-equity markets like Marin/SF |
Why Bay Area and Marin Buyers Use Bridge Loans
Contingent offers — where your purchase depends on your current home selling first — are largely unacceptable in San Francisco, Marin County, Tiburon, Mill Valley, Ross, Kentfield, and most desirable Bay Area markets. Sellers have multiple non-contingent offers and simply won’t wait. A bridge loan solves this by:
- Letting you make a non-contingent, all-equity offer that competes with cash buyers
- Giving you time to prepare and stage your departing home for maximum sale price
- Eliminating the risk of being homeless between closes or paying for temporary housing
- Allowing you to move once instead of twice
Bridge Loan Requirements
- Substantial equity in your departing home — typically 30–50%+ loan-to-value
- Strong credit — most lenders want 680+ for bridge financing
- Ability to carry both payments — some lenders qualify you on both mortgages simultaneously; others allow interest-only to reduce the burden
- Exit strategy — lenders want to see your departing home is marketable and priced to sell
Markets We Serve for Bridge Loans
DiVita Home Finance structures bridge loans for buyers throughout Northern and Southern California, with deep expertise in:
- Marin County — Tiburon, Belvedere, Ross, Kentfield, Mill Valley, Sausalito, San Rafael, Novato
- San Francisco — Pacific Heights, Noe Valley, Cole Valley, Sea Cliff, Presidio Heights
- East Bay — Piedmont, Orinda, Lafayette, Moraga, Danville, Alamo
- Wine Country — Napa, Sonoma, St. Helena, Healdsburg
- Southern California — Los Angeles, Pasadena, Santa Monica, San Diego, La Jolla
In-Depth Articles
- Bridge Loans in Marin County and San Francisco — How to Buy Before You Sell
- How Cross-Collateralization Works in California Bridge Loans
- Bridge Loans for San Francisco Homeowners Moving to Marin
- Non-Warrantable Condo Mortgage California
- Jumbo Loans California
Frequently Asked Questions
How much does a bridge loan cost?
Bridge loan rates are typically 1–3% higher than conventional mortgage rates, plus origination fees of 1–2 points. The cost is short-term — most bridge loans are paid off within 3–6 months when the departing home sells. In a Bay Area market where not having a bridge loan means losing a $2–3M home to a competing buyer, the cost is almost always worth it.
What if my home doesn’t sell within the bridge loan term?
Most bridge loans can be extended for an additional term, typically with a fee. This is rare in California’s inventory-constrained markets — a well-priced home in Marin or San Francisco typically sells within 30–45 days. We work with lenders who offer flexible extension terms.
Can I get a bridge loan if I already have a mortgage on my current home?
Yes — as long as you have sufficient equity. Most lenders will bridge up to 70–80% of your departing home’s value, net of your existing mortgage balance. So if your Marin home is worth $2M and you owe $500K, you could potentially access up to $1.1–1.1M in bridge funds.
Is a bridge loan the same as a HELOC?
No. A HELOC (Home Equity Line of Credit) is a revolving credit line on your existing home, not tied to a new purchase. Bridge loans are specifically structured around buying a new home before selling the old one, often with cross-collateralization. HELOCs can sometimes be used creatively in the same way, but they require your existing home to not be listed for sale — most lenders freeze or close HELOCs once a home is on the market.
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
