A Bridge To Your Dream Home
Our new Bridge Financing program empowers you to access equity from your current home to purchase a new home, with no monthly payments on the bridge financing. You can gain a competitive advantage in a hot housing market by making a non-contingent offer on the new property.
What Should I Know?
Our Bridge Financing Program pays off the existing lien while providing the cash out needed for down payment on the new home.
- The equity used for down payment for the new home
- No monthly payments on the bridge financing
- Up to 75% LTV on bridge loan, depending on occupancy and loan amount
- Balloon payment due in 12 months for Primary Residences and Second Homes and 6 months for Non-Owner Occupied properties
- NO MONTHLY PAYMENTS REQUIRED
- Loan amounts as high as $2,000,000
- Bridge financing only available in conjunction with financing on the new purchase home
Still A Little Confused? Let Us Provide You With An Example
This example is based on an estimated value of a current property listed at $520,000 with a loan amount of $82,000 and a purchase price of a new home of $650,000.
Bridge Loan
- 75% LTV of your estimate sales price of $520,000 nets the bridge at: $390,000
- 8.99% (APR 9.23%) interest only and no payments for up to 12 months
- Bridge would payoff your existing $82,000 mortgage on your current home
- Estimate settlement charges on bridge: $11,500
- Estimated net after loan payoff and closing costs for bridge: $296,500
- Upon selling your home your bridge payoff of $390,000 will be paid off and your will pocket the difference (less RE fees/closing costs)
New First Mortgage for Purchase
- You have to use this same investor for this as that is part of the requirement to get the bridge loan
- Take the $296,500 and apply to the purchase price of $650,000 which leaves $353,500 owed for the purchase
- New first loan is 57% (estimate as we will build closing costs into this loan-4% or so of the loan amount: $370,500
- Rates are in the low 7 to mid 7's for this loan
- $370,000 less settlement on new first and $296,500 from bridge finalizes your purchase of $650,000
- Upon selling your house you take the difference between the final sale price, less settlement charges and pay off the entire $390,000 bridge and the rest of the money is yours to keep.
- This loan closes simultaneously with the bridge loan above
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