Ever wanted to move out to a new home before selling your current one? A bridge loan may be the best solution.
A bridge loan can be a useful tool when looking to purchase your next home before you sell your existing home.
What are bridge loans?
A bridge loan, also known as a swing loan or gap financing, is a short-term loan that provides temporary financing for a borrower who is looking to purchase a new home before selling their current one. This type of loan helps bridge the gap between the purchase of the new home and the sale of the current home.
How bridge loan works
1. The borrower applies for a bridge loan, which is secured by the equity in their current home.
2. The lender provides a loan for a portion of the down payment on the new home.
3. Once the borrower sells their current home, they can use the proceeds to pay off the bridge loan and complete the purchase of the new home.
Bridge loans can be a useful option
For borrowers who want to move into a new home before selling their current one, bridge loans can be a viable option for you. However, they can also be more expensive and risky than other types of financing.
It’s important to carefully consider the terms and costs of a bridge loan before deciding if it is the right option for you. Learn more about bridge loans here.
How we can help
I hope this information is helpful, and I would be happy to discuss further or assist with exploring financing options for your home purchase.
We can connect you with local lenders, private lenders, and national programs to help you obtain a bridge loan for your next purchase.
Deciding on your next purchase? We are here to help. Book an appointment today.