Buy Before You Sell In Monrovia: Bridge Loans & Options
January 1, 2026
January 1, 2026
Trying to buy your next Monrovia home before selling your current one can feel like juggling timelines, cash, and a lot of unknowns. You want a strong offer in a competitive market without taking on unnecessary risk. In this guide, you’ll learn the financing tools available in the Los Angeles area, how they work, their pros and cons, and a clear plan for timing and paperwork. Let’s dive in.
Monrovia sits in a part of the Los Angeles market where inventory is often tight and desirable homes draw multiple offers. Sellers tend to favor offers without a sale contingency. If you have specific timing needs or you’re targeting a rare listing in a favorite street or pocket, buying first can help you compete.
In this environment, showing proof of funds or interim financing can make your offer more attractive. Your goal is to balance strength with safety so you do not carry two homes longer than needed.
A bridge loan is short-term financing that covers your down payment or purchase while you wait to sell your current home. Many products are interest-only and are repaid when your current home closes or when you refinance.
Pros:
Cons:
Use this when you have meaningful equity, want to compete in a tight market, and plan to sell quickly.
A HELOC is a revolving line of credit on your current home’s equity. A home equity loan is a lump-sum second mortgage. Both can fund your next down payment.
Pros:
Cons:
Use this when you have steady income and solid equity and want a flexible, lower-cost option.
A cash-out refinance replaces your current mortgage with a larger one and gives you the difference in cash for your next purchase.
Pros:
Cons:
Use this when you have ample equity and can work within a 30 to 45 day window.
Some buyers close their sale and purchase on the same day with lender and escrow coordination. Cross-collateralization lets one lender use equity across both properties.
Use this when one lender will handle both deals and your escrow team can sync the timeline. It adds complexity, so plan early.
A short-term leaseback lets a seller remain in the property for a set period after closing. Seller carry-back means the seller finances part of the purchase price. These are negotiated tools and less common.
Use these when standard financing is tight and both sides agree to documented terms.
A sale contingency ties your purchase to the successful sale of your home. A kick-out clause lets the seller accept other offers and gives you a window to remove your contingency.
Use this when market conditions allow and you can offer strong price and terms. In competitive moments, many Monrovia sellers prefer non-contingent offers.
Private or hard-money lenders can fund quickly but at higher cost. You need a clear exit plan to pay them off.
Use this only when speed is critical and you understand the costs and risks.
Assess your equity. Ask your agent for a comparative market analysis to estimate your home’s value and likely days on market.
Get preapproved. Secure a purchase preapproval and speak with lenders about bridge loans, HELOCs, or a cash-out refinance.
Choose your path. Compare interest rates, fees, loan-to-value limits, and repayment terms. Request written estimates.
Make your offer. Present preapproval and proof of funds or interim financing to support non-contingent terms when possible.
Coordinate escrow. Align title, payoffs, and timing to retire interim financing after your current home sells.
Expect interest, origination and appraisal fees, title and recording fees, and possible exit fees on short-term loans. Plan for carrying costs if you overlap two homes, including mortgage payments, taxes, insurance, and HOA dues.
Key risks include longer-than-expected time to sell, market shifts between purchase and sale, appraisal shortfalls, and lien or payoff issues at closing. Build a timeline cushion, price your sale strategically, and keep close contact with your lender and escrow team.
Sale contingencies, kick-out clauses, and leasebacks should be documented with clear dates, rent, deposits, insurance, and responsibilities. Use standard California forms and work with an experienced agent and, if needed, an attorney. Interest deductibility and property tax rules depend on how funds are used and current state law. Consider speaking with a CPA or tax advisor for your situation.
If you must accept a contingency, make it as strong as possible. Show that your home is listed with recent marketing activity and set a clear removal date. Consider a rent-back or escrow holdback to align move-out and move-in.
Buying before you sell works best with careful planning and steady communication. You deserve an advisor who understands San Gabriel Valley timelines, common contingency practices, and the logistics of double closings. If you want a calm, concierge-guided process, connect with Kate Amsbry for a complimentary consultation and a tailored plan for your move.
Stay up to date on the latest real estate trends.
Whether you’re mapping out a long-term plan or need to list next month, We're here to listen first, advise second, and guide every step until the ink is dry. Let’s connect—and turn your Pasadena dreams into a solid address.