A Bridge Loan – also known as gap financing or a swing loan; can provide the money you need to help complete the new purchase. The funds from the bridge loan are then used as a down payment on the new home by leveraging the equity in your existing home.
A bridge loan is a short-term loan designed to provide financing during a transition period, such as moving from one house to another. The homeowner is faced with sudden move or transition, such as having to relocate for work, might prefer a bridge loan to the help with cost of buying a new home.
What Are the Advantages of Bridge Loans?
- Up to 75% LTV for Bridge Loan on Primary Homes
- Up to 60% LTV for Bridge Loan on Second Homes and Investment Properties
- No monthly payments
- No prepayment penalty
- 1-year term
- 1 fixed rate that is interest only
- 1 balloon payment to payoff bridge loan within 12-months
- Get your dream home now without waiting to sell
- Make non-contingent offers on a home now
- Uses equity from your existing home [ Primary, Secondary or Investment ] to buy the next home
- Great option if you need to relocate for work or want to retire
- Condo Properties available
- Non-Warrantable Condos available
Our Bridge Loan Calculator below will help borrowers who are both buying and selling figure out how much they can secure in bridge financing.
How to Use Our Bridge Loan Calculator
- On the left side input your Current Home Value $$$, the Loan to Value [ percentage of how much equity you want to use from the departing property ], and any outstanding mortgage debt on the departing property. The Results will show the available cash for the down payment in $$$ GREEN.
- On the Top Right side input the New Home Purchase Price and Cash on Hand to determine the loan amount and LTV of the new home purchase.
- The Bottom Right Side will display the Results of the funds from the Bridge Loan, the new Loan Amount for the property being purchased, and the new Loan to Value of the new home being purchased.