Understanding Real Estate Bridge Loans:
In case you are planning to buy a new house and want to sell your old one, a bridge loan is your best bet. It assists you only in the process of upgradation of your home and is a method designed to use your existing home when purchasing a new one. With real estate bridge loans, you can sue your old house as a down payment for buying your new one. The bridge loan covers the difference between the sale rate of the home you are intending to buy and the buyer’s new mortgage.
What are their advantages?
Most people who are into buying a new home do so by selling their old one. Real estate bridge loans help you do both the selling and buying simultaneously so that you don’t have to worry about each separately. Also, you can even use your first home as a means to pay off the mortgage bridge loan for your second home. All in all, it is nothing but the best deal since it is focused on short-term investments and gives you maximum benefits and returns in the least time possible.
How can you avail one?
As far as bridge loans are concerned, one can borrow up to 80% of the value of both homes combined from bridge loan lenders. There is always some extra money needed for upgradation, and bridge loans help you bridge that gap providing the funds for the time being. Approach bridge loan lenders or companies to help you sort this out in the best way possible. The best company to resort to in this case is Local Flip Funding.
Why is Local Flip Funding the best option to consider?
With Local Flip Funding, the time taken for attaining a mortgage bridge loan is quite less and so is the time taken to repay it. The amazing expertise at this company is bound to take your experience of investing several notches higher and leave you with better gains with real estate bridge loans than what you hoped for.
About
There’s one type of loan that’s definitely worth knowing if you’re trying to buy and sell a home at the same time. You guessed it: a bridge loan.
What is a Bridge Loan?
As the name suggests, it’s a “bridge” that allows you to purchase new property by using the home you currently own as collateral.
How it Helps
While some lenders may be reluctant to grant you a new loan for that second home, they also know that the odds are good that you’ll sell your first home soon enough—and then be flush. A bridge loan helps span that gap.
How a Bridge Loan Can Help You
Typically, for a bridge loan, you can finance up to 80% of the combined value of both homes. So, if you’re selling a home for $200,000 and buying another one for $300,000, you can borrow $400,000, max. As for the rest (in this case, $100,000), you’ll need that handy either in home equity, savings for a down payment, or some combination of the two. Once your home sells, you pay off the bridge loan and then apply for a new mortgage to finance just your new home.
Fast Loans
Bridge loans typically take a shorter time to process than conventional loans (a couple of weeks versus a few months) and are meant to last only a short time (often three months to a year).
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Give us a call at (855) 267-7552, or click the button on the right to fill out an application form. It only takes minutes to find out what you qualify for and is free of charge. What are you waiting for?
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