If you are selling your current primary residence, while buying another home as a move-up buyer, or going smaller as an empty-nester, a bridge loan can provide you with the short-term financing you need to smoothly transition to your new home.
What is a Bridge Loan?
If you purchase a new home while you are still in the process of selling the old home, you may not have the money on hand you need to make the down payment needed to be competitive in this market.
A bridge loan is a loan you can use to tap your existing equity before the home sells. The bridge loan is secured to the home you are selling and is paid off at closing on the sale of your current home. You can borrow against your current equity to use as a down payment on your next home.
What are the Advantages of Bridge Loans in Florida or Michigan?
- With a bridge loan, you can purchase a new home immediately. If you waited until you sold your old home to get the money for the down payment, a seller will likely take an offer from someone who does not need to sell their home first. A bridge loan prevents you from missing out on the chance to own your dream home.
- You might be able to get more money for the home you are selling if you use a bridge loan. No reason to rush and sell to the first buyer that comes along. The reason is that the bridge loan gives you the flexibility to wait longer to sell your current home. Once your home is listed, and you advance the equity you need, you have 6 to 12 months to sell and close on your home. Move into your new home at your own pace. That might be what it takes to receive the highest offer.
- You will have less financial stress and complexity to deal with if you have a bridge loan for your down payment. You may not have to sell assets, like stocks, and lock in gains or losses. Plus the equity in your home can be used for paying off high interest rate credit cards, or used as funds you might need for relocation costs, etc.
- A variety of repayment options exist for bridge loans. When you work with Ascend Mortgage, we can match you to one that is ideal for you.
Apply for a Bridge Loan in Jacksonville or Beyond
Ascend Mortgage helps borrowers buy and sell homes flexibly and smoothly with bridge loans in Florida, Michigan, and across the US. Please give us a call today at (248) 775-1275 to schedule your consultation. Think of buying a new home. Call us or apply today, and we can show you the best path to your new dream home.
(Please note: Bridge loans are only available on primary residences when Ascend Mortgage is providing the new purchase money mortgage on your new home).