Purchase Bridge Loan for Owner-Occupied Home in Sunnyvale, California

In August 2020, First Bridge Lending funded a bridge loan to assist a homeowner with purchasing a single-family residence in San Clemente, CA. The Borrower lived in Sunnyvale and owns 2 rental properties in the Bay Area. They wanted to move from Northern California to Southern California and were unable to qualify for a conventional loan due to their debt-to-income ratio. We provided a bridge loan using the equity in their current residence to purchase the new property. They will soon sell their current home to pay off the loan. The loan amount totaled $1,460,000, and the combined loan-to-value was around 52%. While private lending is mainly for investment purposes, California has some unique regulations that enable some private lenders to provide these short-term bridge loans for a primary residence purchase, so long as the loan term is less than 12 months.