In a hot housing market, particularly a seller's market, you may come across a home you MUST have, but what if you haven't sold your current home and don't have enough money to cover a new down payment? Then a bridge loan may be the right fit for you.
A bridge loan pays off the existing lien while providing the cash needed for a down payment on a new home. You can use the equity in your current home as a down payment for the new house with no monthly payments on the bridge financing. It is two separate loans, a cash-out refi on the departing residence up to 75% LTV and a purchase loan on the new property.
Gives you the opportunity to buy a new house before you've sold your current home.
Helps you gain a competitive advantage in a hot housing market by allowing you to make a non-contingent offer on a new home.
Offers a short-term financing solution with a balloon payment due in 12 months.
NO MONTHLY PAYMENT REQUIRED.*
* Daily interest is added to the payoff, and 12 months of taxes & insurance are impounded at closing.
Loan Amounts between $250,000 and $2M.
Min. 680 FICO.
Max LTV 75% up to $1M, 70% LTV for $1M to $1.5M, and 65% LTV for $1.5M to $2M.
Listed property can be primary, 2nd home, or investment property.**
Purchase must be owner-occupied or 2nd home unless prior approval is granted.
Only available in conjunction with financing on the new purchase home.
12-month post-close reserves on the purchase property.
Property must be listed prior to closing on the MLS.
* * Investment properties cannot be held in a 1031 exchange.