Bridge Loan
What is a Bridge Loan?
A bridge loan is a short-term financing option used to bridge the gap between selling one property and buying another. It allows you to use the equity in your current home to purchase a new one before your current home is sold, offering financial flexibility in fast-paced markets. These loans are also known as swing loans or gap financing.
Requirements
- Property Address
- Property Value/ Loan Amount
- Personal Financial Statement (PFS)
- Credit
- Schedule of Real Estate
- Purchase and Sale Agreement (PSA)
- Proof of Liquidity
Benefits
There are many reasons why it could be ideal for you to obtain a bridge loan, which includes:
It will provide a safety net in the event that you sell your old home before purchasing a new one so you won’t have to rent
Allows the purchase of a new home, without notable restriction, while placing a current home on the market
Being able to put a down payment on a new home without using the profits from selling your old one
Payments can be deferred or interest-only until you are able to sell your old home, which provides a certain amount of flexibility
Questions? We have answers. Call Fred 714-583-6188
If you are interested in finding out if a Jumbo Loan is right for you, please contact us below, or fill out our pre-approval form. One of our experienced loan officers will be in touch.