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.
A bridge loan is a short-term loan secured by real estate that “bridges” the timing gap between buying a new property and selling an existing one. In California’s fast-moving markets, bridge loans have become essential tools for homeowners who find their next home before their current one sells. See also: California Bridge Loans | LA Bridge Loans | OC Bridge Loans.
The Core Bridge Loan Scenario
You own a home in Irvine worth $1.4M with $900,000 in equity. You find the perfect property in Newport Beach listed at $1.8M. The sellers want a 21-day close. Your Irvine home is going on the market, but it won’t close for 45–60 days. A bridge loan solves this: you borrow $900,000–$1,200,000 against your Irvine equity, close the Newport Beach purchase in 14 days, then repay the bridge when Irvine sells. That’s the scenario I help California homeowners navigate regularly — and it works.
Bridge Loan vs. Waiting to Sell First
The cost of a bridge loan — typically 9–12% annual rate on a 90–180 day hold — is often far less than the cost of losing the property or submitting a contingent offer. Contingent offers in California get rejected routinely in competitive markets. Sellers in Marin, the Bay Area, and coastal SoCal see multiple offers and choose certainty. A bridge-funded non-contingent offer gives you the same standing as a cash buyer — and the premium buys you deal certainty that a contingency simply can’t.
How to Qualify for a California Bridge Loan
Bridge lenders evaluate three things: your property equity (combined LTV must be within 70–75% of the departing property’s value), a clear exit strategy (sale proceeds or refinance), and a realistic timeline. No income documentation required. No minimum credit score. No DTI calculation. If you have the equity and a solid exit plan, you can qualify.
Bridge Loan Costs — What to Expect
Rate runs 8.99–11.99% depending on LTV and lender. Origination points: 1–2.5. Terms: 6–18 months. Closing costs are similar to a standard mortgage — roughly $3,000–$8,000. On a $500,000 bridge at 10% for 90 days, you’re looking at approximately $12,500 in interest plus points and fees — call it $22,000–$25,000 total. For most California buyers in competitive markets, that’s a reasonable price to secure the right property without a contingency.
When a Bridge Loan Makes Sense — and When It Doesn’t
A bridge loan is the right tool when you need to close on a new property before your existing one sells, when you’re in a competitive market where contingent offers lose, or when your current home is already listed (HELOCs won’t approve on a listed property). It’s not the right tool when your existing home may be difficult to sell or has a very long expected days-on-market — the carrying cost compounds if the timeline extends unexpectedly. I’ll give you an honest read on whether a bridge makes sense for your specific situation when you call.
Need a Bridge Loan Quote?
I’ll tell you exactly how much bridge capacity you have based on your current home’s equity — usually in the first five minutes of the call.
Frequently Asked Questions
What exactly is a bridge loan and how does it work in California?
A bridge loan is a short-term loan (typically 6–18 months) secured by equity in your existing home. It funds the down payment or full purchase of your next California property before your current home sells. You close on the new property without a sale contingency — as clean as a cash offer — then repay the bridge when your existing home closes. California bridge loans require no income documentation, no minimum credit score, and no DTI calculation. The lender underwrites based on equity (LTV must be within 70–75% of your departing property’s value) and a clear exit strategy. Call me with your home’s value and existing mortgage balance and I’ll calculate your exact bridge capacity in the first conversation.
How much does a bridge loan cost in California?
California bridge loan rates run 8.99–11.99% annually depending on LTV and lender. Origination points are typically 1–2.5 of the loan amount. Terms range from 6–18 months. Closing costs are similar to a standard mortgage — $3,000–$8,000. On a $500,000 bridge at 10% held for 90 days: approximately $12,500 in interest plus $10,000 in points plus $2,000–$3,000 in fees — roughly $24,000–$25,000 total. That’s the real cost of making a non-contingent offer and securing the right property in a competitive California market. For most buyers in Marin, the Bay Area, or coastal SoCal, it’s money well spent. I’ll give you a same-day quote when you share your numbers.
Can I get a bridge loan if my home is already listed for sale in California?
Yes — and this is actually one of the most important bridge loan use cases. HELOC lenders will not open a new line of credit on a property that is currently listed for sale. Bridge lenders, by contrast, specifically lend against listed properties — that’s a scenario they’re designed for. If your home is on the market and you’ve found your next property, a bridge loan is often your only path to accessing equity before the sale closes. The bridge funds your down payment now; you repay it from the sale proceeds when your existing home closes in 30–60 days. Call me and I’ll walk you through the full structure.
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
