What is the Bridge Loan?
Bridge loans are our most popular type of portfolio loan, offering a convenient, short-term financing option for individuals or families who need to buy a house before they’ve sold their existing one.
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. With the assistance of 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 can help to relieve the stress involved with selling your current home before you buy a new one.
A Bridge Loan may be a good fit if you:
- Can’t afford a down payment on the new property without first selling your current home
- Want to close on a new home before selling your current home
- Aren’t scheduled to close on the sale of your current home before closing on the new house
- If you’re buying a property that needs significant repairs, but those repairs don’t meet traditional loan guidelines
Benefits of a Bridge Loan:
- May not require a down payment
- No prepayment penalties
- Payments on your new home deferred for up to 6 months
- Allows you to make a non-contingent offer on a new home
Is a bridge loan the right choice for you? It depends. There are many scenarios in which it makes good financial sense. Depending on your situation, it can be an excellent or poor option.
Questions? We are always here to help! Give us a call at 469-277-3535 or click here to speak to a First Bank lender and determine if the bridge loan is the right choice for you and your family.
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