Buy Your Dream Home Now – With a Bridge Loan
What is a Bridge Loan?
A bridge loan is an interim loan used to finance a homeowner’s purchase of another home, using the equity from the current home.
Do You Buy or Sell First?
That is the catch-22 question, isn’t it? If you need funds from your current home to use as a down payment on your next purchase, then it seems you must sell first. But then as quickly as homes are selling today, what if you sell in 27 seconds and then don’t have a place to move? Being homeless isn’t on anyone’s list of goals.
Bridge the Gap
Here are the benefits of obtaining bridge financing:
- The bridge loan is secured against the homeowner’s present home
- Bridge funds are used for the down payment of the new home
- The homeowner can purchase the perfect home before selling their present one
- As a non-contingent buyer, their offer has a better chance of being accepted, even in a multiple-offer situation
- Loan amount up to $350,000 (higher loan amounts considered on a case by case basis)
- Maximum 6 month term or close of escrow on current home, whichever occurs first
- Minimum credit score of 700 (mid score for both borrowers)
- California residences only – single family or condo
- Fixed Rate = Prime + 3.5%
- No Monthly payment required – only one final payment with all accrued monthly interest due at payoff
- Standard escrow, title and insurance requirements
See the attached flyer for details, and consult with Dean Brown, mortgage advisor with Samuel Scott Financial Group to see if this program is right for you.
Please let us know if you’d like information on what your current home may be worth, and help finding your next home. We’re at your service.