Buyers Bridge Loans

If you're in the market to buy a new home but you haven't sold your current one yet, you might be wondering how you can finance the purchase of your new home. This is where bridge loans come in. We'll go over what bridge loans are, how they work, and whether they're right for you.
What are bridge loans?
A bridge loan is a short-term loan that's used to bridge the gap between buying a new home and selling your current one. It's a type of financing that's designed to help you "bridge" the gap between your current financial situation and your future financial situation, when you'll have more money available to pay off the loan.
How do bridge loans work?
Bridge loans work by providing you the funds you need to buy your next home before you've sold your current one. Once your current home is sold, you can use the proceeds to pay off the bridge loan. Our bridge loan offers a six month term, which begins on the date of your first monthly bridge loan payment.
Bridge loans are secured by the equity in your current home, which means that the lender will use the equity in your home as collateral for the loan. However, if you're unable to sell your home, the full bridge loan amount will still be due at the end of your six month term.
Are bridge loans right for you?
Bridge loans can be a good option if you're confident that you'll be able to sell your home quickly and for a good price. They can help you avoid having to make two mortgage payments at the same time, which can be a financial burden.  Plus, you may be able to move into your new home on your own schedule without the hassle of selling and buying simultaneously or making multiple moves.
However, if you're not sure when your current home will sell, or if you're not confident that you'll get a good price for it, a bridge loan might not be the best option for you.
It's also important to note that bridge loans typically come with higher interest rates and fees than traditional mortgages, so you'll need to weigh the cost of the loan against the benefits of being able to purchase your new home.
In conclusion, bridge loans can be a useful tool for homebuyers who need to bridge the gap between buying a new home and selling their current one. But they're not without risk, and it's important to carefully consider whether a bridge loan is the right option for you before applying for one. As always, it's a good idea to consult with your financial advisor or mortgage consultant before making any major financial decisions.
Frequently Asked Questions
Q: Do I have to qualify for both my new primary residence and my current, departure residence?
A: Yes, however your bridge loan will have interest-only payments during the six-month term.
Q: Does my departure residence have to be listed for sale?
A: Yes. You must have an active, bona fide listing agreement for your departure residence.
Q: Can I get a bridge loan before I find my new primary residence?
A: No, you must have a new first lien, primary purchase in process. Bridge proceeds must be used for a down payment on the new primary home.