Have you found your dream home?
Sometimes you just know. You walk into a house, and you picture where the Christmas tree will go, where your kids will play, where you can set up a perfect home office. The only problem is your current home hasn’t sold. This is where we can help! Our Bridge Loan helps clients buy their next home before selling their current home.
What is a Bridge Loan?
A Bridge Loan is short-term financing that moves equity out of an existing home towards the down payment on a new home. The existing home must still be sold, but it doesn’t need to close before the purchase of the new home.
This 2nd lien is a way to bridge the gap between buying and selling and get into a new home without a contingent offer. This gives you an advantage over other potential buyers of being able to close quickly and possibly be able to put more money down, depending on the amount of equity in your home.
Program Details
Bridge Loans have specific requirements. To start, Equity Resources must be the lender for both the Bridge Loan and the purchase of the new home. A Bridge Loan can’t be done across two different mortgage companies. They are available for single family, owner occupied homes only; no condos, multi-family, or manufactured, and no investment properties or second homes.
Bridge Loan funds are for the down payment only, not to be used for debt consolidation. The maximum loan amount is $200,000, the minimum credit score is 680, and it is a balloon loan with a term of 12 months, after which the full amount of the balance is due. Typically the loan is paid off when the current home is sold way before the end of the term. We have Mortgage Specialists in 20 states and D.C. who are always available to answer further questions about terms and conditions.
Real Stories
Our clients love the flexibility and opportunity the bridge loan provides!
Rick and Stacy wanted to put down a larger amount to avoid mortgage insurance, and they wanted to make the process quick. They turned to us and found the bridge loan program met their needs in both fields. Their Mortgage Specialist had helped them with previous purchases and was able to give them knowledgeable and trusted answers.
Jerry and Alice were working with their local bank for a HELOC (Home Equity Line of Credit) on their current home and the purchase loan of their new home. Their bank wasn’t giving them quick responses and the time to process both files was moving slowly. Their Realtor sent them to us and we were able to turn that ordinary HELOC into a bridge loan so they could close quickly and use the proceeds as the deposit on their new build home, this was a win with their developer, and a win for Equity’s Raving Fan service.
Katie had a lot of equity in her house but was worried that it would sell before she found a new place to live. We helped her with a bridge loan to use that equity from her current house so she had the money for a large down payment on a conventional loan. She quickly found her dream house but there were already 5 other offers on it. Since she wasn’t contingent on her current home closing and could close on a new home quickly, she managed to beat out all other offers. Both loans were processed smoothly since it was all done in-house by the same loan team. Katie is getting ready to move into her new home and will be listing her current one in 2 weeks.