Buying in Tiburon before you sell can feel like a high-wire act. You want one smooth move, not a scramble between closings, storage, and temporary housing. If you have strong equity but need to write a competitive, non-contingent offer, a bridge loan might be the lever that gets you across the gap. In this guide, you’ll learn what bridge loans are, how they work in Marin, the costs and risks to weigh, and practical steps to make your move with confidence. Let’s dive in.
What is a bridge loan?
A bridge loan is a short-term loan that lets you buy your next home before your current home sells. It “bridges” the period between closings so you can move once and write a stronger offer. You typically repay the bridge when your current home sells or when you convert to permanent financing.
In Marin’s high-price, low-inventory market, sellers often favor buyers without a home-sale contingency. A bridge loan helps you compete while tapping the equity you’ve already built.
Why it helps in Tiburon and Marin
Tiburon and nearby communities like San Rafael face limited inventory compared with many markets. Desirable listings can attract multiple offers, and non-contingent terms often stand out. If you need to buy first to secure the right home, bridging can support that strategy.
Many Tiburon homes require jumbo financing for the permanent mortgage. Lenders serving Marin often design bridge options that coordinate with jumbo underwriting so you can transition smoothly after your sale.
Local property features matter too. Coastal and hillside homes may have flood, earthquake, or slope-related considerations that affect insurance, appraisal, and timing. Those factors can influence your carrying costs and a lender’s approach to reserves and approval.
How bridge loans work
Bridge loans are short term, commonly 3 to 12 months. During the term, payments are often interest-only, and rates are generally higher than long-term mortgages. Lenders underwrite your credit, income, assets, and the total equity position across both properties.
Lenders focus on combined loan-to-value across the home you are selling and the home you are buying. Many require meaningful equity and may request proof that your current home is market-ready, such as a listing agreement or marketing plan.
Common types of bridge financing
- Closed-end bridge loan. A standalone short-term loan secured by your current home, sometimes also by the new home. You repay it when your home sells.
- Open-end or conversion bridge. Starts as a bridge and can convert to a permanent mortgage, including jumbo, after your sale.
- HELOC or home equity loan. A line of credit or second mortgage on your current home used to fund the down payment. Often has different costs and underwriting than dedicated bridge products.
- Purchase-money bridge. A bank advances funds to close and later subordinates to your permanent loan.
Typical terms and underwriting
- Term. Usually 3 to 12 months, with possible extensions for a fee.
- Payments. Often interest-only, plus standard closing costs and possible exit fees.
- Credit and income. Expect full documentation, a review of debt-to-income, and asset reserves to cover payments if your sale is delayed.
- Collateral and valuation. Lenders may secure the bridge against one or both properties and rely on an appraisal or broker price opinion for the home you are selling.
Costs and trade-offs in Marin
Bridge financing can create flexibility, but it comes with real costs and risks. Plan your budget and timeline before you commit.
- Higher rates than a long-term mortgage, typically with interest-only payments.
- Closing costs and lender fees, which can include points, appraisal, title, and escrow.
- Potential double carrying costs if your original home takes longer to sell. That can include two mortgages, insurance, taxes, and HOA fees.
- Pressure to sell quickly if market conditions shift, or the need to convert into longer-term financing at a higher cost.
- Insurance considerations for coastal and hillside properties, like flood and earthquake coverage, that may raise ongoing expenses.
Alternatives to consider
Sometimes you can achieve the same goal with less risk or cost. Consider these options and where they fit.
- Home sale contingency. Often the lowest-cost path, but in competitive Tiburon neighborhoods, sellers may not accept it.
- Rent-back or leaseback. Sell first, then rent your home from the buyer for a set period so you can purchase without carrying two homes.
- HELOC or home equity loan. May be cheaper than a bridge if you have sufficient equity and want more flexible access to funds.
- Cash-out refinance. Pull equity from your current home for a down payment. Works best when rates and loan terms make sense for you.
- Contingent offer with concessions. In quieter submarkets, a higher price or flexible escrow terms may win acceptance.
- Short-term rental plan. Sell first and house-hunt with cash in hand while staying in a planned temporary home.
Strategy for Tiburon buyers
Think strategically about timing, team, and product fit. The right plan feels calm and deliberate, not rushed.
- If inventory is tight and you need to present a non-contingent offer, a bridge can be a smart tool to secure the home you want.
- If a seller is open to a rent-back or extended close, negotiate those terms first. They can be less expensive and reduce risk.
- Coordinate your agent, lender, and title/escrow early. Align appraisal timing, loan underwriting, and listing prep to avoid conflicts.
- If your new loan will be jumbo, choose a bridge lender that can convert or coordinate with jumbo underwriting to prevent gaps.
A simple timeline
Every move is unique, but most bridge-backed purchases follow a similar rhythm.
- Pre-approval and lender selection: 1 to 2 weeks or more. Decide on loan type, max advance, rate structure, fees, term, and reserve requirements.
- List and market your current home: Timing varies and can overlap with your purchase.
- Close on the new home: Standard escrow, often 30 to 45 days depending on the deal.
- Close on the sale of your current home: Ideally within the bridge term. Monitor milestones and plan for extensions if needed.
Pre-deal checklist
Set yourself up for success with a clear plan and documented numbers.
- Get a written pre-approval that spells out the max advance, rate range, term, fees, and sale requirements.
- Confirm appraisal or broker price opinion expectations on your current home.
- Clarify if the bridge converts to a permanent loan and whether you will need jumbo financing.
- Review insurance needs for both properties, including flood and earthquake where applicable.
- Build a reserve plan for double payments and possible extensions.
- Work with a Marin agent and escrow team experienced in concurrent closings.
Questions to ask your lender
The right questions help you compare offers and avoid surprises.
- What exactly triggers repayment: sale of my current home, refinance, or end of term?
- Can the bridge convert to a permanent loan, and what are the conversion terms and costs?
- What documentation do you require for my home sale: listing agreement, marketing plan, or a signed contract?
- What are all fees: origination, appraisal, title, escrow, exit fees, and prepayment terms?
- What are the LTV and combined LTV limits, and how will you value the new purchase?
- How many months of reserves do you require if my sale is delayed?
- How do you handle a same-day sale and purchase where proceeds pay off the bridge?
- Are there restrictions for condos, specific property types, or coastal and hillside homes?
Real-world scenarios
Examples can make the path clearer. Here are common Marin situations where bridging may help.
- High-equity Tiburon seller wants to buy first. You have strong equity and credit, and the bridge is secured by your current home. Proceeds from the sale pay off the bridge within the term. You write a non-contingent offer on a scarce listing and move once.
- Buyer with limited cash flow but ample equity. You use a HELOC on your current home for the down payment to avoid some bridge-product fees. The risk is timing if approval or valuation comes in slower or lower than expected.
- Luxury or waterfront purchase that will need a jumbo mortgage. You choose a bridge option that coordinates with jumbo underwriting and appraisal requirements early, keeping your conversion clean post-sale.
Risks, rules, and taxes
Bridge loans can be useful, but they carry risk. Go in with open eyes, a realistic timeline, and a backup plan.
- Market and financial risk. If your home takes longer to sell, you carry two properties and accruing interest. A market downturn can pressure your sale price or refinance options.
- Appraisal risk. If valuations come in lower than expected, you may qualify for less financing or need additional cash.
- Consumer protections. Bridge loans are subject to federal and state lending rules, including disclosures and ability-to-repay considerations. Work with licensed lenders and read all terms carefully.
- Taxes and property assessments. The timing of your sale may affect capital gains exclusions and interest deductibility. In California, changes in ownership can trigger property tax reassessment. Speak with a qualified tax professional about your situation.
Ready to map your move?
If you want to buy in Tiburon or greater Marin without moving twice, a well-structured bridge strategy can help you compete and keep life moving smoothly. You deserve clear numbers, a clean timeline, and a team that manages the moving parts from pre-approval through concurrent closings. For a discreet, data-informed plan tailored to Tiburon, San Rafael, and Marin micro-markets, connect with Drew Thomas. Let’s make your next move feel simple.
FAQs
How long do bridge loans last in Marin?
- Most bridge loans run 3 to 12 months, with some lenders offering extensions for a fee if your home takes longer to sell.
What do bridge loans cost compared to regular mortgages?
- Expect higher interest rates than long-term mortgages plus closing costs like origination, appraisal, title, escrow, and possible exit fees.
Will a lender require proof that I will sell my current home?
- Yes. Many lenders ask for a listing agreement, pricing strategy, and evidence that your home is marketable before funding.
Can I use a bridge loan if I do not have much equity?
- It is more difficult. Lenders often require substantial equity or strong reserves to manage risk during the bridge term.
Is a HELOC better than a bridge loan for Tiburon buyers?
- It depends. HELOCs can be cheaper if you have available equity, while bridge loans are built for short timelines and non-contingent offers.
How do coastal or hillside factors in Tiburon affect a bridge plan?
- Flood, earthquake, and slope considerations can influence insurance costs, appraisal, and underwriting, which impact reserves and affordability.
