Secure a New Home Without a Contingency.
The Bridge Loan offers a convenient, short-term financing option for those who need to sell their current house and buy another at the same time. This situation occurs more often in job relocation. Get into the home you want and save time and stress while selling your current home.
For example, a buyer wants to buy a $500,000 house before selling their current home. Lender advances the client up to $500,000 to purchase the new home. Some programs offer 100% financing (no down payment) depending on client’s credit worthiness. Once the client sells their current home, the net sale proceeds from their home are applied to the outstanding balance on the bridge loan. The bridge loan is converted to a permanent traditional mortgage.
Benefits and Features:
- Minimal down payment
- Interest only
- Credit score of 740 or higher
- Qualify as if first home is sold (only one mortgage payment)
- 1% Origination and other customary closing costs
- Refinance transaction title fees are minimal
- 40% discount on title insurance policy
Value Added Strategy
Consider having the employer agree to buy home. Buyers can then qualify without including current home on mortgage applications.