Bridge Loans for Hollywood Hills Move‑Up Buyers

You found a Hollywood Hills home with the view and privacy you’ve been waiting for. The only catch is timing. In the Hills, the best homes move fast, and offers with a home-sale contingency often lose out. You want to buy first, then sell — without guessing at the costs or the sequence.

In this guide, you’ll learn how bridge loans and other equity-access options work, how to model your short-term carry costs, and how to prepare and list your current home with a concierge plan that protects your timeline. You’ll also see risks to watch and a step-by-step workflow tailored to Hollywood Hills properties. Let’s dive in.

Why buy first in the Hills

Hollywood Hills is a low-inventory, design-forward micro-market. The most desirable homes with views, privacy, and hillside lots draw quick, competitive offers. Sellers tend to choose speed and certainty, which means fewer contingencies and cleaner financing.

If your offer depends on selling your current home first, you may be at a disadvantage in multiple-offer situations. Accessing your equity upfront can let you write a stronger, non-contingent offer. The tradeoff is short-term financing cost and the possibility of carrying two homes for a time. A clear plan helps you manage both.

Local costs and timelines can be higher in Los Angeles. Some neighborhoods have HOA assessments, and permitting or inspection windows for hillside repairs can add days. California’s property tax rules tie the base tax to the new purchase price under Prop 13, while local assessments vary by parcel. Always review the specific property’s tax profile through Los Angeles County records before you set your budget.

How bridge loans work

A bridge loan is a short-term loan secured by your current home, intended to free up cash for the new purchase until your sale closes. Terms commonly run 3 to 12 months. Payments are often interest only, with the balance due when your current home sells. Expect higher rates and fees than a standard mortgage because the lender is underwriting a short-duration, higher-risk loan.

Lenders look closely at your combined loan-to-value ratio, which is your existing mortgage plus the bridge amount compared to your home’s value. On unique hillside properties, lenders may cap combined LTV conservatively. Appraisals can also be cautious, which affects how much you can borrow. You get speed and flexibility, but you accept higher costs and the risk of a longer carry if your home takes extra time to sell.

For a plain-English overview of bridge financing, see this practical definition of a bridge loan. It aligns with how these products are commonly structured and priced in competitive markets.

Compare equity-access options

Bridge loans are not the only way to unlock equity. Here are the common paths and when each may fit:

HELOC

A home equity line of credit is a revolving line secured by your equity. You draw only what you need, and many products are interest only while you carry a balance. Rates are usually variable, which means your cost can change during the holding period. The CFPB’s guide to HELOCs explains how these lines work and what to compare across lenders.

Good fit: You already have HELOC capacity or you prefer draw-as-needed flexibility. Consider rate volatility and the chance that a lender could restrict draws during market stress.

Home equity loan

This is a fixed-rate second mortgage with set payments. You get predictability, which helps if you expect to carry for several months. Approval can take longer than a HELOC and you take on an additional monthly payment.

Good fit: You want a stable rate and plan to hold the loan for more than a few weeks.

Cash-out refinance

You replace your current mortgage with a larger first mortgage and take cash at closing. Processing time is longer, and the new mortgage may reset your amortization. Your rate depends on the market when you refinance.

Good fit: The refinance math works and you have time to close before you buy.

Securities-backed line or personal line

You borrow against an investment portfolio rather than your home. It can be fast and avoids real estate liens, but you take on market risk and potential margin calls.

Good fit: You are well capitalized and want to preserve your current mortgage structure.

Sequencing solutions

Some timing tactics reduce the need for cash. You can negotiate an extended escrow, a seller rent-back, or a short leaseback after closing to buy time for your sale. These are situational, but they can be powerful in the right deal.

Build your carry-cost model

Before you write a buy-first offer, estimate what it costs to own both homes for a realistic time window. Your goal is to set a target holding period, a minimum acceptable net sale number, and a maximum carry budget.

Follow this simple framework:

1. Define your best, likely, and worst-case holding periods in months.
2. For each month, total:
   • Bridge or HELOC interest payments.
   • New-home mortgage payment if it starts before your sale.
   • Property taxes for both homes, prorated monthly.
   • Homeowners insurance for both homes.
   • HOA dues if applicable.
   • Utilities, landscaping, and routine maintenance for the departure home.
3. Add one-time costs:
   • Loan fees such as origination, appraisal, and lender legal fees.
   • Pre-list expenses including staging, photography, inspection, cleaning, storage, and repairs.
   • Expected sale transaction costs, including commissions, escrow, and transfer fees.
4. Compute your total cost to sale:
   • Total monthly carry multiplied by your holding months, plus one-time costs.
5. Forecast your net sale proceeds:
   • Expected sale price minus transaction costs and any remaining liens.
   • Confirm that your expected proceeds will pay off the bridge or HELOC plus all costs.
6. Stress test your plan:
   • Vary the holding period by 1 to 3 months longer.
   • Test a 5 to 10 percent lower sale price.
   • Test higher bridge or HELOC rates.
   • Consider a conservative appraisal on the departure home.

Tip: Build the model in a simple spreadsheet so you can tweak timing, price, and rates quickly as you evaluate homes.

Sequence your listing prep

A smart sequence compresses your time between purchase and sale. It also maximizes buyer confidence, which supports better pricing and faster closings in the Hills.

Pre-buy phase

• Get written quotes from lenders for bridge, HELOC, or second-mortgage options, and secure purchase pre-approval conditioned on your exit plan.
• Set your target holding period, minimum net proceeds, and maximum carry budget.
• Scope a prep plan for your current home with line-item cost estimates for staging, essential repairs, and cosmetic updates with high ROI.
• Line up vendors. Your concierge team can schedule a pre-list inspection, staging, photography, and contractors so work begins the moment you get keys to the new home.

Offer and closing on the new home

• Coordinate closing dates so you have a short buffer to complete prep on the departure home.
• Arrange temporary storage or a short-term rental if you want the home fully staged and free of personal items.

Immediate post-purchase sprint

• Knock out prioritized repairs that can delay or derail escrow, such as roof, drainage, or systems items common to hillside homes.
• Complete staging and professional photography for a fresh, design-forward presentation.
• Assemble disclosures and a clean pre-list inspection to reduce buyer hesitation and speed contingency removal.
• Address any permitting or wildfire defensible-space needs early to avoid delays.

Market launch strategy

• Choose pricing based on your timeline. Go aggressive if speed matters most, or more aspirational if you can carry longer.
• Consider a brief pre-market window to target likely buyers while minimizing disruption.

Fallback plan

• If you miss your target window, have a short-term rental or leaseback option ready.
• Be prepared to refinance bridge debt into a longer-term product if needed.
• Revisit pricing and presentation based on early feedback.

Risks to model and manage

• Double carry. You may pay two mortgages for longer than expected. Plan for this and set a firm budget.
• Market risk. A slower sale or lower price affects your exit plan and cash flow.
• Appraisal risk. Unique hillside properties can appraise conservatively. This can limit your bridge amount or influence pricing.
• Exit risk. If your home does not sell on time, you may face loan extension fees or have to refinance under less favorable terms.
• Permitting and compliance. Missed permits for work can delay closing or expose you to legal issues.
• Taxes. Mortgage interest deductibility and the home-sale exclusion have specific rules. Review the IRS guidance on selling your home in IRS Publication 523 and consult your tax advisor before you finalize timing.

Your Hollywood Hills toolbox

• Lender pre-approval and a written bridge or HELOC quote with terms, fees, and combined LTV.
• A carry-cost model with stress tests for timing, price, and rates.
• A pre-list inspection and prioritized scope for repairs and updates.
• A ready-to-launch vendor bench for staging, photography, cleaning, storage, and permit support.
• A documented exit plan with pricing thresholds, leaseback options, and a refinance backup.

How we help you move up

You set the target and budget. We operationalize the plan.

LA Realty Concierge coordinates the entire buy-first, sell-second workflow so you can focus on choosing the right home. We align lender timelines with your offer strategy, schedule pre-list inspections early, and manage repairs, staging, and photography the moment you close on the new place. Our design-forward presentation and clear disclosures aim to reduce days on market and protect your carry window.

Ready to explore a buy-first move in the Hollywood Hills? Schedule a planning call and we’ll build your carry model, map your prep budget, and create a launch timeline that fits your goals. Connect with LA Realty Concierge to Schedule Your Concierge Consultation.

FAQs

What is a bridge loan for a move-up purchase?

• A bridge loan is short-term financing secured by your current home that provides cash for your next purchase until your sale closes, often with interest-only payments and a balloon due at sale.

How do HELOCs differ from bridge loans?

• A HELOC is a revolving line with a variable rate and draw-as-needed flexibility, while a bridge loan is a closed, short-term loan typically priced higher but built for speed and clean offers.

How do I estimate the cost of carrying both homes?

• Add monthly loan interest, new-home mortgage payments, property taxes, insurance, HOA dues, utilities, and maintenance for your holding period, then include one-time loan fees and pre-list expenses to get the total.

What timing issues are unique to Hollywood Hills homes?

• Appraisal on unique hillside properties can be conservative, and geotechnical, wildfire, access, or permit considerations can add time, so front-load inspections and disclosures to protect your timeline.

Can I reduce how much cash I need without a bridge loan?

• You can negotiate timing solutions like an extended escrow or a seller rent-back, or use existing HELOC capacity, but suitability depends on your finances and the specific deal.

Are there tax implications when I buy before I sell?

• Yes. Timing can affect the home-sale exclusion and deductibility of interest, so review IRS Publication 523 and consult your tax advisor before you finalize dates.