In San Jose, the calendar is the problem. Homes in neighborhoods like Willow Glen, Cambrian, Almaden Valley and the Rose Garden can go from listed to pending in under two weeks. Selling your own home, by contrast, usually takes a month or two from listing to closing.
Those two timelines don’t match. A Buy Before You Sell bridge loan closes the gap by letting you buy on the market’s schedule and sell on your own.
The Timeline Problem
With home prices around $1.3 million and homes selling in as little as 12 days, a San Jose seller rarely needs to wait for a buyer whose purchase depends on another sale. Here is how the two paths compare.
Selling first
- Prepare and list your home, then wait for an offer and a full escrow
- Move into temporary housing or negotiate a rent-back
- Search for your next home under time pressure
- Move a second time
Buying first with a bridge loan
- Make a non-contingent offer as soon as you find the right home
- Close in as little as 7 to 10 days
- Move once
- Sell your old home afterward, empty and staged
Loan Terms at a Glance
- Up to 70% combined loan-to-value across both homes
- Terms up to 11 months
- Monthly payments
- Minimum credit score of 600
- For primary residences
Example: Cambrian to Willow Glen
Say you own a home in Cambrian worth $1,500,000 with $400,000 left on the mortgage, and you find a $1,900,000 home in Willow Glen.
- Combined value of both homes: $3,400,000
- 70% of that: $2,380,000 in maximum total borrowing
- Minus your existing mortgage: $1,980,000 available
That covers the $1,900,000 purchase price with room for closing costs. You can write an offer the same week the home lists.
Figures are illustrative only. Actual loan amounts depend on appraised values, existing liens and lender approval.
Estimate your own numbers with our loan calculator →
Frequently Asked Questions
How quickly can a bridge loan close?
Often in 7 to 10 days, which fits the short escrows San Jose sellers tend to prefer.
Is a bridge loan the same as a cash offer?
Not exactly. It’s still a loan, but it removes the sale contingency and can close quickly, which are the two things sellers value most about cash.
How is this different from a HELOC?
A HELOC can take weeks to set up, and many lenders won’t open one on a home that’s about to be listed. A bridge loan is designed for this situation and can close in days.
Do you cover other Silicon Valley cities?
Yes. See our guides for Sunnyvale, Santa Clara and Palo Alto.
Work with a Bay Area Bridge Loan Specialist
Seth Swenson has worked in private money lending since 2003, including more than 25 years in the San Francisco Bay Area. As a licensed California broker with access to over 50 private lenders, he matches your situation with the lender whose terms fit it best.
For full loan terms and more detail, see our Buy Before You Sell bridge loan page.
Ready to Compete in San Jose?
Call Seth at (415) 860-7384 or send a message with your current home’s value, what you owe and the price of the home you’re considering.