California Bridge Lenders for Residential Real Estate
A list of lenders offering bridge loans for a California residential property purchase. Most private mortgage lenders only offer loans for investment or business purpose. Some will consider a primary residence bridge in which a homeowner uses equity in one home to buy another. Change the loan type to "Residential Owner-Occupied" for more options.
In August 2020, First Bridge Lending funded a $2,615,000 bridge loan secured by a large single family residence in Los Altos, Santa Clara County, California. The borrower is a full-time real estate broker and investor who flips 2-3 properties per year. This property is a 5-bedroom, 6-bathroom house which was originally purchased for $3,900,000. The borrower invested $600,000 in extensive renovations and added square footage. The house went on the market, but the previous loan came due. A bridge loan was needed just to pay off the previous lender and buy some time until the sale is completed. First Bridge's 1st mortgage is approximately 58% loan-to-value with a 12-month loan term. The property size is approximately 5,000 square feet, including a detached guest house.
Bridge Loan for Fourplex Property Purchase in Lynwood CA
SDC Capital, a direct private lender based in Burbank, funded a $365,750 bridge loan for the purchase of a 4-unit residential property in Lynwood, South Central LA, California. Just prior to the announcement of shelter-in-place orders during the Pandemic, the borrower was under contract to buy the property. We agreed to terms before the state went on lockdown. Everything changed and nobody knew what the next 30 days would look like. We worked diligently with the borrower and stayed committed to a loan that worked for all parties. The LTP (loan-to-purchase) was just 55% since the borrower brought 45% cash to the closing table. Our interest rate was 7.99% plus an origination fee of 1 point. This residential property bridge loan was funded in April 2020.
Bridge Loan for Contra Costa County Owner-Occupied Property
In March 2016, Rubicon Mortgage Fund funded a $1,971,000 bridge loan for the purchase of a large single family home in Lafayette, Contra Costa County, CA. The purchase price was $2,700,000 for the 5,500 square foot home in the Upper Valley neighborhood of Lafayette. The Borrower put down over $700,000 in cash, and the LTC (loan-to-cost) was 73%. The Borrower is an experienced Bay Area real estate investor. Rubicon has funded 5 other bridge loans for him. This transaction is quite different from the previous loans because he intends to use the subject property as his primary residence. With our 11-month bridge loan, the Borrower was able to make a non-contingent offer so he wouldn’t lose the home to another buyer. He did not have time to secure traditional financing. He plans to move in to the home and then refinance into a conventional home loan within 11 months.
Bridge Loan for San Mateo County Home REO Acquisition
In March 2015, Rubicon Mortgage Fund financed a $675,000 bridge loan for the purchase of a single family home on a 10-acre lot in La Honda, San Mateo County, CA. La Honda is a small town in the Santa Cruz Mountains, between Silicon Valley and the Pacific coast. The property was a REO as the result of a bank foreclosure. The Borrower had been watching out for properties in that area for over a year. When this home became available he wanted to act quickly to close the deal and Vance’s team was able to get it funded fast. The Borrower put up 40% cash for the purchase so the loan-to-cost for this 1st trust deed bridge loan is 60%. He plans to rent the home and refinance with a conventional loan within 2 years.