A bridge loan is where you use the equity in your current home to help you finance the purchase of a new home. In other words, you leverage the equity in your current home and use it as a bridge to get you into the new home. We have done many of these loans over the years. Here are a couple ways to finance this. One way is to get a home equity line of credit on your current home and use that cash to make a down payment, or pay cash for the new home. Another way is a...
Category: Bridge Loans
ARE YOU CONSIDERING A BRIDGE LOAN?
If you have a lot of equity in your home, and want to purchase a new home before selling your current home, you may want to consider a bridge loan. A bridge loan allows you to leverage the equity in your current home to make a down payment on the new home, without selling your current home. Here’s how it works. The lender will take the value of your current home and the value of the new home, and will lend up to a percentage of the total value of the 2 homes. The loan will be on...
March 22, 2023March 23, 2023john
ARE YOU CONSIDERING A BRIDGE LOAN?
A bridge loan works nicely if you need the proceeds from the sale of your current home to purchase a new home. In essence, the bridge loan gives you an advance of the proceeds from the sale of your home to purchase the new home. It is a temporary loan to help you purchase a new property without selling your current property. You typically need a lot of equity in your current home for the loan to work. The bridge loan lends on both your current home and the home you are purchasing, so it is a cross-collateral loan...
January 12, 2023January 12, 2023john
COMMERCIAL BRIDGE LOANS
One of the loan types that has come into demand recently is a bridge loan. They’re typically used in situations where there’s stress in the situation resulting in a bargain element in the pricing, and time is a material factor. (Our current environment is causing a lot of this.) We have a fair amount of discussion about the terms and conditions of these loans, a lot of it dispelling misinformation floating around the market. We continually get calls & emails from lenders looking for deals to fund. This is normal – the pulse of our business. We can arrange funding...
April 10, 2022April 10, 2022john