Service First Bridge Loan
What is a Bridge Loan?
If you have been a homeowner for at least a year, it is highly likely that you have equity in your home (especially in North Texas)! A bridge loan allows you to borrow that equity to use as a down payment on the purchase of a new home and is paid back when you sell your current home.
What are the benefits?
Have more money for a down payment.This will lower your loan amount, which will lower other fees associated with it. It could also help you avoid paying mortgage insurance every month.
Make your offer more attractive.A bridge loan can help you avoid having a contingency to sell your current home on the offer for your new home. Sellers like offers without contingencies because there is less of a risk you won't buy their home due to the fact you couldn't sell yours in time.
Reduce the stress of home buying & selling.Because you do not have to sell your current home prior to purchasing your new one, you can take your time moving out and putting your home on the market. Additionally, you can avoid some of you the annoyances of selling your home while you're living in it like having to leave when a potential new buyer(s) is wanting to see it, and having strangers walk through your home.
Can I use the proceeds from the equity on anything else?
Not on this type of loan. A Bridge Loan is meant to "bridge" the gap between your current home and a new home, hence its name. However, if you're looking to receive cash from the equity in your home we can look at a Cash Out Refinance, or a Home Equity Line of Credit (HELOC). Ask me for more details about these types of loans.
How long do I have to sell my old home after the purchase of a new home?
There is not a specific deadline for which you must sell your old home. However, you must have the home listed for sale with a bonafide Realtor® at the time of closing, and to qualify you must be able to the monthly payment for the new home as well as the bridge loan. If you need a recommendation of a high quality Realtor® please let us know and we can refer you to someone(s).