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If you’re thinking of selling your current home in order to buy a new one, you may be feeling overwhelmed. Selling a home poses numerous challenges, and buying a home in a desirable market such as ours can be a rollercoaster. A bridge loan can be a useful solution. Let’s explore this further.
Bridge Loan Basics
A bridge loan is a short-term financial solution that enables homebuyers to access a portion of the equity in their current property. For many homeowners, this involves using the equity from their existing home as a down payment for a new one, thereby enhancing their immediate cash flow. Bridge loans, similar to home equity loans, are secured with their current home as collateral.
Due to their higher risk, certain criteria must be met to qualify for a bridge loan. Lenders typically seek a low debt-to-income ratio, a positive credit history, and substantial equity in your current residence. Consequently, some homeowners may find it challenging to meet the requirements for a bridge loan.
Benefits of the Windermere Bridge Loan
We offer our clients an exclusive bridge loan program. The Windermere Bridge Loan uses the equity from your current home so you can make a non-contingent offer on a new one. When determining the bridge loan, Windermere looks at the amount you owe on your home in addition to the bridge loan. When combined, these two loans cannot total more than 75% of the value of your current home.
The Windermere Bridge Loan increases your competitiveness as a buyer and alleviates the pressure of selling your current home before purchasing a new one. Waiting for your current home to sell could mean losing your ideal home to someone else. Sellers find non-contingent offers more appealing. So, the Windermere Bridge Loan ensures a smoother closing process. We specialize in streamlining the home buying and selling process, and our highly rated local experts are here to assist.
Many of our agents have used this program and have had great success. The approval process is straightforward and only takes a few days. Additionally, no payments are due on the loan before your home closes. The principal and interest payments are due either when your current home sells or within six months after receiving the disbursement, whichever occurs first.
Additional Information
Please review the new real estate law changes so that you are aware of how they impact homebuyers and sellers. We’re happy to answer any questions you may have.
If you’re wondering about buying a house out of state, we’ve answered some frequently asked questions on that topic. And, check out these 8 tips when preparing to sell.
