Bridge Mortgage – Do you need money to close your construction loan or close the purchase of a new home?
You can use the equity in the home you own now to complete your cash requirement for building
your new home.
A Bridge Mortgage is simply a short term loan that provides financing, for some other purpose, for something you need to do now, like purchase a new home before your old home is sold.
This loan can be as simple as a Credit Line on your hold home, or an Equity Loan from a private investor. Or it can be a traditional refinance of property you currently own.
The way this is done is to take out a loan on your present home, or other property you own. It is a temporary loan secured by the equity in the property you own now.
After your new home is completed, you can sell your old home and pay back the Bridge Loan at that time.
This way you don’t have to use your cash to get the construction loan done or you won’t lose the home you want to buy because you don’t have the funds to close. Use these 100% Construction Loans to have the cash you need to make building or purchasing possible.
Please call me with the particular figures pertaining to your old and new homes, and I will do the numbers for you to see how it works.
Most of the time, Bridge Mortgages are Equity (Hard Money) loans, but they don’t have to be. Often, an investor wants to close another property, and there is a time issue, or cash flow is the issue.
To borrower short term money, really meets his needs. Interest rates, on Equity loans, can be high, but if the period of time you need, is short, then the interest rate is not too important. You have to analyze the risk and benefit of the project.
Equity loans also carry expensive loan origination fees, but again, it may not matter if the value of the quick money is there.