Buy Before You Sell! Unlock the Equity in Your Current Home with a Bridge Loan
Are you dreaming of a seamless move to your new home without the hassle of temporary living arrangements? Or perhaps you want to stay competitive in today's hot real estate market by purchasing as a non-contingent buyer? A Bridge Loan could be the perfect solution for you.
What is a Bridge Loan?
A Bridge Loan is a short-term financing option that allows you to leverage the equity in your current home (the departure residence) as well as the equity in your new home purchase. This type of loan provides you with the financial flexibility to buy your new home before selling your existing one.
The Two Biggest Benefits of a Bridge Loan
- Move Once: With a Bridge Loan, you don't need to move out of your current home and relocate to a temporary living space before moving into your new home. This means you can stay in the comfort of your home until your new home is ready, avoiding the stress and expense of multiple moves.
- Compete in a Tight Market: In competitive real estate markets, being able to present a non-contingent purchase can make a significant difference. A Bridge Loan allows you to reserve your new home without the purchase being contingent on the sale of your current home. This gives you an edge over other buyers and can help you secure the home of your dreams.
How Does a Bridge Loan Work?
A Bridge Loan is an Equity Depletion Loan that utilizes the equity in both your current and new homes. Here are some key points:
- No Income Documentation Required: There are many varieties of bridge loans that do require borrowers to qualify in the traditional manner but we are excited to announce the bridge loan our lender is offering is not structured as such as it is a “stated income” loan. This will make the application process smoother and faster enabling you to present as a non-contingent buyer.
- No Prepayment Penalty: There are no penalties for paying off the loan early, giving you the flexibility to repay the loan as soon as your current home sells.
- Exit Plan Required: To secure a Bridge Loan, you must have a plan in place to pay off the loan and secure permanent financing within 11 months. This ensures that the loan is a short-term solution to bridge the gap between buying your new home and selling your current one.
Additional Benefits
While there are additional benefits to a Bridge Loan, it's important to note that there are specific rules and requirements associated with these benefits. For more detailed information and to discuss your specific opportunity, we recommend contacting our preferred lender.
Contact Our Preferred Lender
For personalized guidance and to see how a Bridge Loan can work for you, reach out to our trusted partner:
CMG Home Loans
Josette Alexander
NMLS#: 508433
Phone: 925.285.8617
Don't let the timing of your home sale hold you back from your dream home. Explore the advantages of a Bridge Loan and make your next move with confidence!
