If you think you have to sell your current home in order to buy your next one, a bridge loan or a cross-collateralization loan can help you buy now without going through that process.
Buying a home? Click here to perform a full home search
Recently, a client of mine who’s getting ready to put their home on the market found the home they want to purchase next. It’s a beautiful home and it’s exactly what they’re looking for, but when I made the call to the home’s listing agent to tell them about our offer, they told us the home already had two other offers.
My client’s original offer was contingent on the sale of their current home, but they didn’t want to let this opportunity pass by, so we elected to pursue a couple of alternative loan options that will allow them to buy the home now without needing to sell their current home first: the bridge loan and the cross-collateralization loan.
What are these loans? How can they help you if you’re in a similar situation as a buyer? Today I’ve brought in Jay Rodriguez of New American Funding to answer these questions for you.
With a bridge loan or a cross-collateralization loan, you won’t need to sell your current home first in order to buy your next one.
First, a bridge loan is a form of short-term financing that’s available on a single property. Essentially, it allows you to receive funds from a property you already own and repurpose it for, say, buying another home. Keep in mind that not every lender can offer a bridge loan, though.
A cross-collateralization loan allows you to buy a property while using one or more other properties you already own as collateral. This is especially helpful if your equity is tied up in the home you’re trying to sell. With this loan, you can put liens against both properties and leverage the equity of the property you already own to buy the new one without going through the hassle of selling it first.
If you have any more questions about these loan types, don’t hesitate to reach out to Jay or me. We’d love to help you.
No comments :
Post a Comment