A bridge loan is a wonderful tool that allows existing homeowners the ability to access their equity to buy their next home and buy before you sell.
Bridge loans are great for the right borrower(s) that need the flexibility. It allows you to offer on a new home without the contingency of selling yours first. This allows our clients to move at their own pace and have updates performed prior to moving in. For those who don't enjoy living in a construction zone, there is no better tool.
Any existing mortgage(s) are paid in full and the bridge loan take first lien position on the property. The bridge loan payment will likely be much less than the existing mortgage that was paid off. Your new payment is an interest only monthly obligation that is very low and more affordable than you'd think. This gives you more flexibility while holding two properties at once for a short period of time.
Ask Local has partnered with the best lenders in this space. They offer no and low cost bridge options. If you own a home and have equity, we highly recommend taking a look at this option. It will strengthen you as a buyer in the eyes of a seller knowing you don't have to sell that property before closing on theirs.
With the free 'Recast' policy, your end game could be as if you sold day 1 and bought day 2 but had all the flexibility of buying day 1 and selling day 2
*Selling your home can be very expensive. Knowing and appreciating that fact, our real estate agent partners trim the fat and pass those savings on to you, our Ask Local Registered User