Bridge Loans: How Buyers Are Winning Non-Contingent Offers This Spring

As we head into the spring buying season, the market is starting to heat up, and clean offers are winning again. We've already seen multiple buyers get offers accepted simply by going non-contingent, using a bridge loan instead of selling first.

Interest rates are also about 1% lower than this time last year, which has brought serious buyers back. When the right house hits the market, waiting to sell first often means missing out.

That's where bridge loans come in, and when structured correctly, they work extremely well.

What Is a Bridge Loan?

A bridge loan allows a buyer to:

• Access equity from their current home (the one they plan to sell), and
• Use that equity as the down payment on their next home.

In simple terms:

We pull equity from House A and use it to buy House B.

This allows the buyer to move forward without a sale contingency, which is often the difference between winning and losing the deal.

There is no income qualification on a Bridge loan!

Why This Works So Well in Today’s Market

Non-Contingent = Stronger Offers

Sellers consistently prefer:

• No sale contingency
• Clean timelines – Can close in 10 days or less!
• Certainty of close

Even against higher-priced offers, a clean structure often wins.

Much Lower Cost Than Most "Buy Before You Sell" Options

One of the biggest misconceptions is that bridge loans are expensive.

In reality:

• Our bridge loan rates are currently in the 7% range
• Many competing programs and alternatives are 9% - 11%, sometimes higher

That's a massive difference, especially over a short bridge period.

Compared to:

• iBuyer-style programs
• "Buy before you sell" platforms
• Cash-advance or hard-money solutions

Bridge loans are typically far more cost-effective and allow the homeowner to keep their equity, instead of giving it away through fees or discounted pricing.

Smarter Qualification = Smaller Bridge Loan

Another key advantage:

There are loan programs that allow us to qualify the buyer without counting the payment on the departing residence.

What that means in real life:

• Buyers often don't need a large bridge loan
• Payments stay manageable
• Less risk, less leverage, cleaner approvals

This is often the difference between a bridge loan feeling stressful vs. feeling strategic.

Why Realtors Should Be Talking About This Now

If you have a client who:

• Owns a home with equity
• Wants to buy a specific property
• Is worried about competing with non-contingent offers

A bridge loan can:

• Eliminate the sale contingency
• Strengthen the offer immediately
• Give the buyer flexibility to sell later, on their terms

This is no longer just a "hot market" tool; it's a smart market tool.

When used correctly, they are one of the most powerful tools available for buyers who already own a home.

Please let me know if you have any questions or if you or any of your clients, friends, or family members need my guidance. I’m just a call, text, or email away.

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Interest rates are better this week, but not by much! We are day to day with this interest rate thing, and rates tend to go up twice as fast as they go down, so a slow move to the downside is never bad.

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers, including conventional, FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the 5s.
• Conventional loans up to $832,750 are in the mid to high 5’s.
• High-balance loans from $832,751 to $1,249,125 are also in the high 5 and 6s.
• Jumbo loans above $1,249,125 are in the high 5’s and 6’s.
• ARMS in the 5’s and some in the 6’s
• Bank statement loans are available again with 10% down, with larger down payments in the 6’s++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,325,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No-Ratio Loans require a 30% down payment.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:**   

Nada today!

**Bad News for Condos***     

Nothing today!

CONDO HELP!!!

If you have a listing or a buyer interested in a specific condo and are unsure whether it is warrantable or Non-warrantable, please call me, and we can look up Fannie’s list in real-time. We don’t know when something has changed, and it would be impossible to track everything day by day, but we don’t mind looking up a few items each day.

The full state of California’s naughty list has been added to:

MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!