Need to Buy Before You Sell? A Bridge Loan Can Help
If you own your home, and especially if you’ve owned it a while, you may have significant equity that you could leverage to purchase your next property. However, that might require that you sell your home first before you begin the process of hunting for the next one in earnest, and this usually means finding temporary housing in the interim.
An alternative is a bridge loan, which allows you to borrow against that equity for a short-term loan and apply those funds against your next down payment. Then, when you sell your old home, the bridge loan gets paid off through the closing of that sale. This allows you to begin the process of house hunting earlier, to stay in your existing home during the house hunt, and to prepare your home for sale with peace of mind. You only move once.
My colleagues over at RPM Mortgage’s Buy B4USell Bridge Loan program can help you. When you work with them to finance the bridge loan and your new home purchase, they can offer:
Bridge loans from a minimum of $50,000 to a max of $400,000 — enough for a 20% down payment on a $2 million home.
Combined Loan-to-Value (CLTV) of 70% on the departing property via exterior-only appraisal.
6% interest-only (8.667% APR +1-point fee) on the bridge loan for six months.
2nd loan position against the departing home.
For more information, contact us for more info.
