With all of the challenges facing buyers in the current market, including fierce competition, all-cash offers and rising interest rates, at least there is a ray of hope with the re-emergence of high leverage bridge financing to help buyers tap into the equity of their current home to purchase their next home.
Just think about how effective a bridge solution could be if you’re in a competitive situation against all-cash offers and/or offers with no contingencies. With your client already moved into their new home, imagine how efficiently you can market and prepare their previous home.
So what are the terms of this fantastic bridge solution? I know what you’re thinking, and fortunately you can discard the notion of ultra high interest rates and crazy fees for this bridge loan. Qualified buyers can obtain up to 80% loan-to-value on their current home to provide the cash they need to purchase a new home. Further, the qualifications for the bridge financing are actually easier than conventional financing. Want more? OK, how about no payments required during the term of the loan! The final kicker: very competitive pricing and low fees versus typical bridge financing solutions.
Bridge financing is only one of a number of programs that allow your clients to purchase a new home before they sell their existing home. Other programs include Departing Residence and Cross Collateral… For these and a multitude of other programs, consult your favorite mortgage professional for further details.