Homeowners who are trading up/down, need to consider whether they have to sell their current residence to address the following:
- Need down payment, which is tied up in their current home
- Can they qualify holding mortgages on BOTH homes?
The Bridge Loan option remedies both of these barriers.
- If there is enough equity built into the home's value, you can net out proceeds... up to 70-75% of value. Funds come as a 12 month balloon loan, interest only payments, which can be are accrued until pay-off. This should allow enough time to sell the departing home after buying and moving into the new home.
- This Bridge Loan also allows them to qualify for a mortgage on the new home, without being constrained by the bridge loan payments.
It is an expensive, but a reliable alternative which allows you to get into your new home without needing to sell your current home before closing on the new home. The cost is arguably worth it. Marketing your home without the stress of keeping it show ready while living in it, will get your the optimal sale price.
I am happy to discuss the details with you, lay out the numbers for you to analyse and determine if it's the best option for you.
Pauline Lee | pauline@indmortgage.com | 617=965=1988 x205