How a bridge loan with no monthly payments actually works.
A short-term loan secured by the home you are leaving, sized to fund the home you are buying, and paid off in one balloon payment when the first home sells. Here is every moving part, in order.
Fund → shop → offer → close → sell → payoff
Six stages. Most Orange County borrowers move from application to keys on the new home in 30–45 days, then sell over the following months.
Bridge closes on your current home. Net proceeds (after points and fees) go to escrow for your down payment.
You shop with a full pre-approval on the new purchase — the bridge is already structured into the DTI analysis.
A non-contingent offer. No "subject to sale" clause, which is what listing agents in HB and Long Beach look for first.
You close on the new home and move at your own pace — your current home is still yours, with no bridge payment due.
List the departing home staged and empty — which in this market typically means a better price than selling occupied.
At that closing, escrow pays the bridge balloon from the sale proceeds. Remaining equity comes to you.
The mechanics, one term at a time.
Term length: six months maximum
The bridge term is capped at six months. That is a realistic marketing window for a well-priced home in most of Orange County and Long Beach — and it is why the listing plan starts the day the bridge funds. Higher-end Huntington Harbour and Long Beach homes, which typically take longer to sell, have to be priced with that six-month ceiling in mind.
Interest-only, with no monthly payments during the bridge term
The loan is interest-only: no principal is paid down during the term, and the interest is charged up front as points rather than collected in monthly payments — so there is no required monthly payment while the bridge is outstanding. Points and fees are finance charges. See the cost example including APR.
Balloon payoff at sale
When your current home sells, the escrow company pays the entire bridge balance from the proceeds before you receive a dime. You do nothing extra; the payoff demand is part of the closing.
What happens at maturity
If the home has not sold by the end of the term, the balance is still due. Your options are to pay it off from other funds, refinance it, or request an extension if one is offered — extension is not guaranteed and may carry additional fees. Pricing your home correctly from day one is how you avoid this conversation.
Lien position
The bridge records against your current home, in first position if it pays off your existing mortgage, or in second position behind it. Which one fits depends on your existing balance and how much down payment you need.
Eligible properties
California real property only. Consumer track: a 1–4 unit departing residence you occupy. Business-purpose track: non-owner-occupied property held for investment or resale.
Consumer-purpose vs. business-purpose
You live in the departing home
The bridge is on your primary residence and the proceeds buy your next primary residence. Federal Truth in Lending rules apply: you receive a Loan Estimate and Closing Disclosure showing the finance charge and APR, and the balloon feature is disclosed in writing.
Investment or flip property
Non-owner-occupied bridge for investors and flippers — typically faster to close, with DSCR or conventional refinance as the exit. Business-purpose loans are exempt from TILA disclosures, but every number we show you is still accurate and in writing. Investor track →
The questions people actually search.
How long does a bridge loan take to fund in California?
Typically two to three weeks from a complete application, assuming clear title on the departing home. The time-consuming part is usually not the bridge — it is getting the new-purchase pre-approval right, which is why both are done here at the same time.
Do I have to list my current home before the bridge funds?
Not necessarily. Some programs require a listing agreement within a set window after funding; others do not. Either way, having the listing plan ready is what keeps the balloon date from sneaking up on you — see selling your current home.
Can I make a non-contingent offer with this?
That is the point. With the bridge proceeds covering your down payment and the new-purchase pre-approval structured around the no-payment bridge, your offer does not need a sale contingency. You may still keep inspection and loan contingencies as normal.
Is this a HELOC?
No. A HELOC is an open-ended, revolving line with required monthly payments. This is a closed-end, single-draw loan with a defined term, no monthly payments during the term, and a balloon payoff. Full comparison in the FAQ.
Does the bridge count against my debt-to-income ratio?
Whether a bridge obligation is included in your DTI is determined by the lender and loan program on your new purchase. Because this structure has no required monthly payment, many program guidelines do not add a bridge payment to the DTI calculation — but this is not guaranteed and is subject to underwriting. The full explanation with the math is on DTI & Qualifying.
Tell me about your current home and your next one.
Within one business day you get a straight answer: whether a no-monthly-payment bridge fits your numbers, what it would cost including APR, and what your offer on the next home could look like.
"I handle the offer and the pre-approval in one call."
- Call or text(949) 245-9313
- Emailkiri@loanfactory.com
- Service areaOrange County · Long Beach · Huntington Beach · California property only