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.
If you’ve been shopping for short-term real estate financing in Los Angeles, you’ve heard both terms. Many lenders use them interchangeably — which adds to the confusion. Here’s the practical difference and when each makes sense for LA investors. See also: Los Angeles Hard Money Loans and Bridge Loans California.
The Technical Distinction
Hard money loans are a broad category of short-term, asset-based financing from private lenders. They’re typically used to purchase distressed properties, fund fix-and-flip renovations, or close deals too fast for conventional lenders. Hard money is defined by its underwriting model: the lender cares about the property value, not your credit or income.
Bridge loans are a specific use case within hard money — they “bridge” the gap between two transactions. The most common bridge scenario: you want to buy a new property before your current one sells. You use a bridge loan to tap equity in your existing property to fund the new purchase, then repay the bridge when the old property closes.
Bridge Loans: The LA Use Case
In Los Angeles, bridge loans are common among homeowners and investors who own properties with significant equity. A homeowner in Glendale with $600,000 in equity who finds their dream home in Pasadena — but hasn’t sold yet — can take a bridge loan against the Glendale property to fund the Pasadena purchase. No income verification, closes in 7–10 days, repaid when Glendale sells. For investors, bridge loans fund value-add acquisitions where the property isn’t distressed enough to need a full fix-and-flip loan, but isn’t ready for conventional financing either. A Burbank apartment building that’s 60% occupied but heading to 95% after lease-up — that’s a bridge loan scenario.
Rates and Terms Compared
| Feature | Bridge Loan | Fix & Flip Hard Money |
|---|---|---|
| Rate (LA market 2026) | 9.0% – 11.5% | 9.5% – 12.99% |
| Term | 6–18 months | 6–18 months |
| LTV | Up to 70–75% of property value | Up to 70–75% of ARV |
| Renovation draws | Usually not included | Draw schedule included |
| Best for | Timing gaps, equity release | Purchase + rehab |
Which Should You Use?
If you need to buy a distressed property and fund a renovation — use a fix-and-flip hard money loan. If you need to close fast on a stabilized or near-stabilized property while your other assets are tied up — use a bridge loan. The structures are similar; the use case drives the choice. For LA homeowners specifically, a bridge loan is often the cleanest path to making a non-contingent offer on a new property without selling first — competitive LA markets reward buyers who can close without a contingency attached.
Frequently Asked Questions
What’s the difference between a bridge loan and a hard money loan in Los Angeles?
Hard money is the broad category — short-term, asset-based private lending. A bridge loan is a specific use case within hard money: it bridges the gap between two transactions, typically using equity from an existing property to fund a new purchase before the old one sells. In practice: hard money for fix-and-flip deals includes renovation draw financing built in; bridge loans for move-up buyers or investors focus on speed and liquidity without a renovation component. Both close in 7–14 days, neither requires income documentation, and both are based primarily on property equity. The term “hard money” is often used loosely to describe any short-term private loan, which is why the terms get conflated — but the structures differ depending on the use case.
How does a bridge loan let an LA homeowner make a non-contingent offer?
A bridge loan taps the equity in your existing LA home to provide funds for the down payment (or full purchase) of your next home — before your current home sells. You close on the new property without any sale contingency attached to the offer. Once your existing home sells (typically within 60–90 days in most LA neighborhoods), the sale proceeds pay off the bridge loan. During the bridge period you pay interest-only on the bridge loan, which is temporary and manageable. The competitive advantage is significant in LA’s tight inventory markets — a non-contingent offer stands out dramatically against buyers whose offers are contingent on selling another property first.
What are bridge loan rates in Los Angeles in 2026?
Bridge loan rates in Los Angeles run 9.0%–11.5% in 2026 — generally slightly below fix-and-flip hard money (9.5%–12.99%) because bridge deals involve stabilized properties with cleaner exit strategies and less construction risk. LTV goes up to 70–75% of the property’s current value. Terms are typically 6–18 months with interest-only payments during the bridge period. For a $600,000 bridge loan at 10.5%, the monthly interest-only payment is $5,250 — meaningful but temporary for the typical 60–90 day period most LA homeowners need. I can typically deliver a term sheet the same day you call with basic property and equity information.
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
