Bridge Financing

Bridge Financing

Bridge mortgage financing (or a bridge loan) is a short-term loan that serves its purpose when you have purchased a new property and haven’t sold your current house yet.

In this ever-changing real estate market, home owners find themselves in this exact situation more often than you think. That’s why it is always smart to work with an experienced realtor and one of our agents who can help walk you through the obstacles of buying and selling.

Even if you don’t have a firm sale agreement on your existing home, we can still help! As long as you have equity in your current home, we have lenders that can offer short term financing solution to bridge the gap.

Below is a very basic example of how bridge financing works:

You own a home worth $600,000 and owe $200,000 on the mortgage. You buy a new home for $700,000 and want to close on your new purchase before you have sold your existing home. Maybe you want to take your time moving or have the house painted before you move in.

Even if you haven’t sold your current home yet, a bridge loan gives you temporary access to your $400,000 in equity to cover the down payment and closing costs until your sale closes.

Consult with our team today to learn more about the potential benefits and drawbacks of bridge financing.