If you’re ready to make your American Dream come true by purchasing your first home or if you are ready to sell you current home, a bridge loan can be a very useful way to make this happen. Find out more about how this type of loan can benefit you.
As new homebuyers, it’s crucial to understand that, much like location, timing is everything. Timing is also important in the instance of current homeowners looking to sell their home and buy a new home, as most buyers need the funds from their home sale to put toward their new home purchase. Lining up the exact timing of when you sell your current home to when you sign on you new home is like aligning the stars. But that’s not to say it’s impossible. Challenging yes, but that is why a bridge loan can be just the thing you need to get to the next stage of homeownership regardless of your current status right now.
A bridge loan is a very specialized short-term loan that can help in exactly this instance – when you need funds to get you from “point A to point B” as a homeowner. Even if you are able to qualify for both home loans, you aren’t able to make a significant down payment on the new home without first selling the current home, right? That’s where this loan comes in, because it can serve to “bridge the gap” from that hypothetical point A to point B that we mentioned earlier. It is in addition to your home mortgage and covers a down payment for the new home.
This typically a very short-term scenario, upon which you pay the loan off in its entirety once you receive funds from selling your current home or property. The loan is dependent upon the equity you have build up in your current home. These loans also have low debt-to-income ratios and no specific amount of paperwork requirements at the time of closing. These loans are contingent on the specific financial situation, not based on your annual earnings or your credit score, which comes as a relief to many.
What are some of the benefits of this type of loan?
These loans are very “borrower friendly” and many benefits that serve as win-win solutions for a successful transaction. Without having to have already sold your current home, you can get the new home of your dreams. It also comes in handy to be “out of the house” during the times that real estate professionals are showing the previous home. You can even stage it and possibly put it on the market for a top dollar amount. You can also delay initial payments up to four months on this type of loan so your budget is freed up to manage other expenses that come with selling and buying a home. If you are able to pay back the loan prior to that time, you won’t have to worry about an added monthly payment down the road.
When you decide that you want to obtain a bridge loan, contact a mortgage broker to help you through the process.
Now that you’ve decided that this loan is exactly what you need, its time to find the right mortgage broker to help you through the application process to ensure eligibility and a successful application submission. Do some research about mortgage brokers in your area and meet with several until you find the one you feel confident will work to find you the best loan for a win-win solution.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.