How does a Bridge Loan Work

A bridge loan pays off the existing lien while providing the cash needed for a down payment on a new home. You can use the equity in your current home as a down payment for the new house with no monthly payments on the bridge financing. It is two separate loans, a cash-out refi on the departing residence up to 75% LTV and a purchase loan on the new property.

Bridge Loan Benefits

• Gives you the opportunity to buy a new house before you've sold your current home. 

• Helps you gain a competitive advantage in a hot housing market by allowing you to make a non-contingent offer on a new home. 

• Offers a short-term financing solution with a balloon payment due in 12 months. 

• NO MONTHLY PAYMENT REQUIRED.*

*  Daily interest is added to the payoff, and 12 months of taxes & insurance are impounded at closing. 

Bridge Loan Details

 

• Loan Amounts between $250,000 and $2M.

• Min. 680 FICO.

• Max LTV 75% up to $1M, 70% LTV for $1M to $1.5M, and 65% LTV for $1.5M to $2M.

• Listed property can be primary, 2nd home, or investment property.** 

• Purchase must be owner-occupied or 2nd home unless prior approval is granted. 

• Only available in conjunction with financing on the new purchase home. 

• 12-month post-close reserves on the purchase property. 

• Property must be listed prior to closing on the MLS.

* * Investment properties cannot be held in a 1031 exchange.

Reach out to one of our Mortgage Bankers who will assist you in your search!