Buying your next home in Greenbrae or Kentfield before you sell your current one can feel like a high-wire act. You want to make a strong offer, avoid a double move, and still maximize the sale of your current home. A bridge loan can help you do exactly that if you understand how it works and plan the timeline with care. In this guide, you’ll learn the mechanics, costs, risks, local timing tips for Bon Air and the flats, and practical steps to move forward with confidence. Let’s dive in.
Bridge loans explained
A bridge loan is a short-term loan that lets you buy your next home before you sell your current one. It typically uses your current home as collateral and is designed to be paid off when your old home sells. Many products offer interest-only payments during the term, with the principal due at payoff.
Lenders may offer closed or open bridge loans. A closed bridge loan requires that your current home be under contract before funding, which reduces the lender’s risk. An open bridge loan does not require a pending sale, but it usually comes with stricter requirements and higher costs.
Most lenders will review your credit, debt-to-income ratio, available equity, and the marketability of your current home. Expect standard appraisal and title work as part of underwriting.
Why Greenbrae buyers use them
In Marin County’s desirable micro-markets, sellers often prefer non-contingent offers. If you are targeting a special property in Greenbrae or Kentfield — for example, a larger lot in Bon Air or single-level living in the flats — a bridge loan can help you act quickly and compete.
Buying first also reduces disruption. You can move directly into your new home, then take the necessary time to prepare, stage, and market your current property for the best result. This approach is common among move-up buyers with strong equity positions who want to control timing rather than rush into a sale.
Terms, costs, and approvals
Bridge loans vary by lender, borrower profile, and market conditions. You will see some common themes:
- Term length: Often 3 to 12 months. Some lenders offer up to 18 months at higher cost.
- Interest rate: Typically higher than a conventional mortgage because of the short term and added risk.
- Payments: Frequently interest-only during the term. Some require partial principal.
- Fees: Origination, appraisal, title, and closing costs are common. Total fees often fall in the 1 to 3 percent range of the loan amount, but products vary.
- Loan-to-value: Lenders usually look at your combined loan-to-value, often topping out in the 70 to 90 percent range based on your available equity.
- Underwriting: Expect review of credit, income, current mortgage balances, and a valuation of your existing home, plus documentation on the new purchase.
Tax treatment for interest depends on structure and current law. Consult your tax advisor to understand your specific situation.
Local timeline: buy first, sell second
Here is a typical sequence for Greenbrae and Kentfield move-up buyers using a bridge loan:
- Pre-approval and planning: Get pre-approved for your new mortgage and discuss bridge options with experienced local lenders. Budget 1 to 2 weeks.
- Bridge application: Apply and seek conditional approval for your bridge loan. Allow 2 to 4 weeks depending on lender and complexity.
- Offer and escrow: Submit a clean, non-contingent offer when the right home appears. Purchase escrows in California commonly run 30 to 45 days.
- Close and move: Use the bridge loan to help fund your purchase, close on the new home, and move in.
- Prep and staging: Prepare your old home for market. In Marin, sellers often plan 2 to 6 weeks for repairs, paint, landscaping, and staging.
- List and sell: Launch marketing, hold open houses, and accept an offer. Once in contract, escrow is commonly 30 to 45 days.
- Payoff: Your bridge loan is paid off from sale proceeds at the closing of your old home.
How staging fits your clock
Staging, small upgrades, and top-tier photography can improve both price and speed in Marin micro-markets. In Bon Air and the flats, presentation and pricing strategy often determine whether you sell in weeks or linger for months. Choose a bridge term that comfortably covers prep time, marketing, and a reasonable days-on-market buffer.
Hypothetical Greenbrae scenario
Imagine you own a three-bedroom home near Bon Air and want to buy a larger four-bedroom in the flats. You have strong equity and secure a bridge loan to cover part of your down payment. You close on the new home in 30 days, then spend four weeks preparing and staging your old home.
If your old home sells within 6 to 8 weeks after listing, the bridge loan is repaid at closing and your extra carrying costs stay modest. If the sale takes 16 weeks, your total interest, fees, and carrying costs increase, which may reduce net proceeds. The lesson is to budget time conservatively and align pricing and marketing to your risk tolerance.
Benefits, risks, and how to reduce them
Bridge loans offer clear advantages and meaningful tradeoffs. Understanding both sides helps you decide with confidence.
Benefits:
- Stronger offers: A non-contingent offer can be more competitive.
- Convenience: Avoids temporary housing or a double move.
- Control: You choose when to list and how to prepare your current home.
Costs and risks:
- Higher cost of capital: Rates and fees are typically higher than a conventional loan. You will also carry insurance, taxes, and utilities on two homes for a period.
- Cash flow pressure: Even interest-only payments can add up while you service a new mortgage.
- Market and valuation risk: If your current home takes longer to sell or sells for less than expected, your exposure increases.
- Appraisal and equity limits: Lenders may cap loan amounts if the valuation comes in lower than expected.
Risk reducers:
- Build time buffers: Choose a term that covers staging, days on market, and escrow, plus extra time for surprises.
- Price with precision: Use current local comps to set a strategy that balances speed and value.
- Prepare early: Line up contractors, stagers, and photos immediately after your purchase closes.
- Confirm extension terms: Ask your lender about extensions or refinance options before you sign.
- Get tax guidance: A CPA can clarify interest deductibility and timing considerations.
Alternatives to bridge loans
Depending on your equity, timing, and risk tolerance, an alternative may fit better.
- HELOC or home equity loan: Often lower rates and flexible access. May not yield enough cash for a large down payment and HELOC rates can vary.
- Second mortgage: Similar to a home equity loan with potential fixed-rate options.
- Contingent offer: Lower financing cost and risk, but often less competitive in Greenbrae and Kentfield.
- Rent-back agreement: Close on your sale, then rent back for a defined period. Requires a willing buyer and careful negotiation.
- Family or cash reserves: Can be cheaper and simpler but uses personal liquidity or family resources.
- Short-term renovation loan: Useful if significant pre-sale work is needed before listing your current home.
Deciding if a bridge loan fits
Use this quick checklist to evaluate your plan.
- Equity and credit: Do you have sufficient equity and a strong credit profile to qualify within typical CLTV limits?
- Timeline: Can you realistically prep, list, and sell within 3 to 12 months? What is your comfort level at 90 to 180 days?
- Total cost: Have you modeled interest, fees, taxes, insurance, utilities, and maintenance for carrying two homes?
- Market plan: Do you have a data-driven pricing and marketing strategy tailored to Bon Air or the flats?
- Exit strategy: If the sale is delayed, what is plan B? Extension, refinance, or a rental option?
How Allison supports your plan
When you buy first and sell second, precision matters. You benefit from a local strategist who can coordinate lenders, timing, staging, and marketing so the pieces fit.
- Data-driven pricing: Current comps and micro-market insight for Greenbrae and Kentfield inform offer strategy and list pricing.
- Design-forward prep: Renovation and staging guidance to present your home at its best. Allison can leverage Compass Concierge to finance targeted pre-sale improvements that help your home sell faster and for more.
- Project management: A vetted vendor network and clear milestones to keep prep on schedule.
- Transaction coordination: Close alignment with title and escrow to time your sale and ensure a smooth bridge payoff.
If you are eyeing a special listing in Bon Air or the flats, a well-structured bridge strategy can help you secure it and protect your bottom line.
Ready to map your buy-first, sell-second path in Greenbrae or Kentfield? Reach out to Allison Salzer for a tailored plan and local lender introductions.
FAQs
What is a bridge loan when buying in Greenbrae?
- A bridge loan is a short-term loan secured by your current home that lets you purchase your next home before you sell, with repayment from your sale proceeds.
How long do bridge loans usually last in Marin County?
- Many terms run 3 to 12 months, with some lenders offering longer at higher cost; choose a term that covers prep, marketing, and escrow with a buffer.
Do sellers prefer non-contingent offers in Bon Air and the flats?
- In many competitive situations, sellers favor clean, non-contingent offers, which is why some buyers use bridge financing to compete.
What are the main costs of a bridge loan for a Greenbrae move-up buyer?
- Expect a higher interest rate than a conventional mortgage, lender fees such as origination and appraisal, and carrying costs on both homes until your sale closes.
Can I use a HELOC instead of a bridge loan in Kentfield?
- Yes, some homeowners use a HELOC or home equity loan to fund the down payment; it can be cheaper but may not provide enough cash for larger purchases.
How does staging affect my bridge loan timeline?
- Staging and targeted improvements often help homes in Greenbrae sell faster and for more, but they require 2 to 6 weeks; build that time into your bridge term.
What happens if my old home takes longer to sell?
- Discuss extension policies with your lender in advance, model the extra carrying costs, and have a contingency plan such as refinancing or renting short-term.
