Found the right home in Greenbrae or Kentfield before your current place is ready to sell? You are not alone. In Marin’s fast, higher-priced micro-markets, timing is everything, and you may need funds in hand to write a strong offer. This guide explains how bridge loans work here, when they make sense, what they cost, and how to use them without adding stress. Let’s dive in.
Bridge loan basics in Marin
A bridge loan is short-term financing that gives you access to your equity before your current home sells. It fills the gap so you can buy first and sell after.
- Two common structures:
- Home-equity bridge: Secured by your current home’s equity. Funds help you purchase the next home. The lender often places a lien on your current home and sometimes the new one.
- Purchase bridge: Funds are advanced for the new purchase and secured by both properties. This can help when you need more cash than your current equity alone provides.
- Repayment: Most bridge loans are paid off when your current home closes. Some require monthly interest-only payments. Others defer interest and collect it at payoff.
- Typical term: Often 3 to 12 months, sometimes up to 24 months depending on the lender and your profile.
When a bridge loan makes sense here
In Greenbrae, Kentfield, and nearby Larkspur, listings can move quickly and attract multiple offers. A bridge can help you write a non-contingent offer and secure the home you want.
- Move-up buyers: If you have strong equity and need to act fast, a bridge can let you buy now and list later, which can be more competitive than a sale-contingent offer.
- Downsizers: If you need a single-level home or a specific location, a bridge can help you move sooner without renting between moves.
- When it is less attractive: If equity is thin, documentation or reserves are limited, or the local market readily accepts sale contingencies, other options may be better.
Alternatives to consider:
- HELOC or home equity loan if available and sufficient.
- Cash-out refinance of your current home.
- Leaseback or rent-back with the buyer or seller to smooth timing.
- Simultaneous or back-to-back closings when feasible.
Costs, terms, and what lenders look for
Bridge loans usually cost more than standard mortgages because of their short term and risk profile. Compare total cost, not just the rate.
- Interest and fees: Expect a premium over current mortgage rates. Common fees include origination, appraisal, title, and closing costs. Some lenders charge points or flat setup fees.
- Loan-to-value: Lenders look at combined exposure across both properties. Many use combined LTV limits in the 60 to 80 percent range, but exact limits vary by lender, property, and credit.
- Qualification: Strong credit is preferred, often mid-600s or higher. Lenders review debt-to-income and your ability to carry two housing payments. Sufficient equity is essential.
- Documentation: Expect to provide a purchase contract for the new home, and either a listing agreement, valuation, or sales contract for your current home. Some lenders want your current home listed or under contract.
- Jumbo coordination: Many Marin purchases require jumbo financing. Confirm whether the bridge lender will subordinate and how the permanent loan underwriter views the bridge.
- Timing: Some bridge lenders can close in 2 to 4 weeks, but appraisal, title work, and lender capacity can affect speed.
Risks you should plan for
Bridge loans are useful tools, but they come with real trade-offs.
- Double costs: You may carry two housing payments for a period. Plan cash flow accordingly.
- Carry risk: If your sale takes longer or closes lower than expected, bridge costs increase and net proceeds fall.
- Higher effective cost: Premium pricing and fees can add up. Compare to a HELOC, leaseback, or timing strategies.
- Collateral risk: The bridge is secured by your property or properties. Failure to repay can lead to serious consequences.
- Underwriting surprises: Reserve requirements, lien subordination, or documentation issues can affect eligibility or timing.
- Market risk: If the local market softens, you may need more time or pricing flexibility to sell.
- Tax and legal: Interest and fee treatment depends on your situation. Consult your tax advisor for specifics.
Timing and coordination in Greenbrae and Kentfield
Short offer windows and multiple-offer scenarios favor clean, non-contingent offers. Careful planning helps you use a bridge without unnecessary stress.
Recommended timeline checklist:
Before you write an offer:
- Get preliminary bridge pre-approval so you know your loan size, terms, and documentation needs.
- Secure a permanent mortgage pre-approval, especially if a jumbo loan is likely.
- Align on preferred closing dates and discuss potential rent-back options.
After your offer is accepted:
- Submit the full bridge application and provide valuations, a listing agreement or sale contract for your current home, and the purchase contract for the new home.
- Coordinate appraisals and title work for both properties if required.
- Work with title companies to schedule closings and build in buffers for local recording timelines.
Contingency planning:
- Decide in advance how you will handle a slower sale: extension options, interest accrual, price strategy, or reserve use.
Practical tactics:
- Include a bridge pre-approval letter in your offer package to support a non-contingent bid.
- Negotiate bridge extensions and fees upfront if you expect a longer sale timeline.
- Explore seller or buyer rent-backs to buy time for staging and market prep.
- Coordinate early with jumbo lenders and your title team so lien positions and payoff mechanics are clear.
Real-world example
You own in Kentfield with strong equity and find a Greenbrae home you love. A bridge lender offers a 6 to 12 month term with interest-only payments and a combined LTV cap near 75 percent, subject to your credit and documentation. You pay an origination fee and closing costs and close in about 3 to 4 weeks. When your Kentfield home sells, the bridge is paid off from proceeds. If the sale takes longer, you continue paying bridge interest or request an extension, which increases your total cost.
Questions to ask your lender and agent
Key lender questions:
- What is the maximum loan amount and your CLTV limit?
- What is the interest rate, are payments interest-only, and how is interest calculated?
- What are all fees, and are there extension fees or prepayment penalties?
- What is the initial term, and how do extensions work?
- On which properties will you record liens, and how does payoff occur at sale?
- What documentation do you require, and how long will underwriting and closing take?
- Will you coordinate or subordinate to my permanent mortgage lender?
- What covenants or default events should I know about?
Agent and transaction questions:
- Is a simultaneous or back-to-back closing realistic with the title companies involved?
- Will the seller accept a non-contingent offer supported by a bridge pre-approval?
- Are leasebacks common for this neighborhood and seller profile?
- What are current days-on-market and sale-to-list ratios for comparable homes to gauge timing risk?
Next steps for Marin buyers and sellers
If you are weighing a bridge loan in Greenbrae, Kentfield, or nearby neighborhoods, the right plan can help you buy with confidence and sell for maximum value. We help you evaluate options, coordinate timing, and prepare your home so your sale supports your purchase plan. Ready to explore a tailored strategy for your move? Reach out to Morgan Team Real Estate to book an appointment.
FAQs
What is a bridge loan and how long does it last?
- A bridge loan is short-term financing to buy before you sell, typically 3 to 12 months, sometimes up to 24 months depending on the lender.
How does a bridge loan make my offer stronger in Greenbrae?
- It lets you write a non-contingent offer by providing funds upfront, which can be more competitive in multiple-offer situations.
What credit and equity do I need in Marin?
- Lenders usually want strong credit and sufficient equity, with combined loan-to-value often capped between 60 and 80 percent depending on profile and property.
What costs should I expect with a bridge loan?
- Expect higher rates than standard mortgages plus fees such as origination, appraisal, title, and closing costs; some lenders also charge points or extension fees.
Can I use a HELOC instead of a bridge loan?
- Yes, if available and large enough; HELOCs often carry lower rates but require setup time and may involve different underwriting.
What if my current home does not sell in time?
- Plan for extensions, additional interest costs, or alternative strategies such as price adjustments, reserves, or a rent-back to manage timing.
