Bridge Loans

A bridge loan is a short-term loan that uses the equity from your current home to help you make an offer on a new one, without having to sell immediately.

Bridge loans can help you if you don’t qualify for two mortgages, or if you do qualify but don’t want to make two mortgage payments at the same time. Through a bridge loan, you can also use the equity in your current home as a down payment for your new home. These loans can also help to avoid situations like moving twice in a short period of time, and help to relieve the stress involved with selling your current home before you buy a new one.

• May not require a down payment
• No pre-payment penalties
• Payments on your new home deferred for up to 6 months
• Allows you to make a non-contingent offer on a new home

Who Could Benefit From a Bridge Loan?

• Buyers who don’t qualify for a new home with 2 mortgages
• Buyers who do qualify with 2 mortgages but could benefit from deferring the new home payment for 6 months
• Buyers who need the equity from their current home to use on the down payment of the new home
• Buyers who don’t want to liquidate assets for the down payment of the new home
• Buyers who want to move but have money tied up in the equity of the current house
• Buyers who need to relocate quickly and can’t wait for the existing home to sell
• Buyers making improvements before selling the home and already have a new home already picked out

How a Bridge Loan Works

• A 6-month interest only Bridge Loan is funded for the agreed purchase price of the new home
• No down payment is required on a purchase price up to $766,500 and 720+ credit scores
• A lien is placed on the both properties – the one being bought and the one being sold
• No payments are required for up to 6 months, however deferred interest accrues
• Buyer’s Bridge Loan approval is based on their ability to qualify after their current home is sold and/or their current’s home equity
• Out of state collateral properties are acceptable within certain parameters