How a Bridge Loan Works in California
A bridge loan is short-term financing secured against your current home so you can buy the next one before the first has sold. In California — where contingent offers are routinely rejected in competitive markets — that timing advantage is often the whole point.
Terms typically run 6 to 12 months, sometimes 24. Most are interest-only, and many allow the interest to be deferred and paid off from the sale proceeds, so you are not carrying two full mortgage payments at once. Combined loan-to-value across both properties usually caps around 75% to 80%.
Bridge Loan Costs and Exit Strategy
Bridge loans price above conventional financing — commonly 2% to 5% higher — plus 1 to 3 points. That premium buys speed and certainty, and it is temporary by design.
Lenders underwrite the exit as closely as the borrower. They want to see a realistic sale plan for the departing residence: a market-supported price, condition, and days-on-market for comparable homes. A weak exit story is the most common reason a bridge request is declined.
The main risk is a slow sale. If the departing residence sits longer than the term, you face an extension fee or a refinance. Pricing the outgoing home realistically matters more than squeezing the last few thousand out of it.
Frequently Asked Questions — Bridge Loans
What is a bridge loan in California?
A bridge loan is short-term financing secured against your current home so you can buy the next before the first sells. Terms run 6 to 12 months, most are interest-only, and combined loan-to-value across both properties usually caps at 75-80%. Rates run 2% to 5% above conventional plus 1 to 3 points. Lenders underwrite your exit — the sale plan for the departing residence — as closely as your credit.
What credit score do I need for bridge loans?
Most bridge loan programs in California look for 650+. Credit tends to affect your pricing more than your eligibility — a stronger score usually shows up as a lower rate rather than a different answer on whether you qualify.
How much down payment do I need?
A bridge loan in California typically requires 20-25% combined equity. The exact figure moves with your credit profile, occupancy and property type — stronger files land at the low end of that range.
How long does closing take?
A bridge loan in California generally closes in 7-21 days. Appraisal turn times and how quickly you return requested documents are the two things that move that timeline most.
Can I use this program for an investment property?
A bridge loan is available for primary or investment. Occupancy affects both pricing and down payment, so confirm the intended use up front — it changes the terms you are quoted.
Are rates higher for bridge loans?
Bridge loan rates run materially higher — commonly 2% to 5% above conventional, plus 1 to 3 points, because the money is short-term and fast. Your specific number depends on credit, down payment, occupancy and the day you lock.
Do I need to verify my income?
For a bridge loan, income is lighter documentation, with the departing residence sale as the qualifying exit. This is the main way the program differs from a standard conventional loan, and it is usually the reason borrowers choose it.
Can I refinance later into a different program?
Yes. With a bridge loan the usual path is to the loan is repaid from the sale of your departing residence, not refinanced. Nothing locks you in — plan the exit when you take the loan rather than after.
What documents do I need to apply?
For a bridge loan you will need a government ID, credit authorization and property details, plus a listing agreement or market analysis for the departing home and payoff statements on both properties.
How do I get started?
Call (888) 703-1840 for a free bridge loan consultation, or use the form on this page. Pre-approval usually takes 1-3 business days, and there is no cost and no hard credit pull to find out what you qualify for.
Last updated: July 2026. Sources: FHFA, HUD, VA, CalHFA, CFPB, California DRE, California Association of Realtors. All loans subject to credit approval. Rates subject to change.
About This Website
Mortgage Education Written by Licensed Mortgage Professionals
Mortgage Guide California was created by licensed mortgage professionals to help California homebuyers and homeowners understand their options before they apply. This website itself is not a lender or a mortgage broker — it does not take applications, quote binding rates, or make credit decisions. The guides are written and reviewed by people who place loans for a living, and the site is sponsored and paid for by Save Financial, Inc., a California-licensed mortgage broker.
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Mortgage Guide California is an educational resource sponsored and paid for by Save Financial, Inc. All mortgage services, rate quotes, and loan applications are handled by Save Financial, Inc. (NMLS #377740, DRE #01875766), a California-licensed mortgage broker. Equal Housing Lender. All loans subject to credit approval.