2 Loans That Can Help Buyers Who Need to Sell First in Order to Buy

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.

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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.

How Last Year’s Changes Will Impact This Year’s Tax Season

As you know, tax laws changed in 2018. This means there are a few developments you’ll need to account for as you file this year, so we want to share a few key points with you today.

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The holidays are over and we’re now approaching a much less jolly time of year: tax season.

As you prepare to file for your refund and pay this year’s taxes, you’ll need to be aware of these developments.
 
One key change is that the standard deduction has been increased to $12,000 for single people and $24,000 for married couples.

Depending on your income, your debt, the number of dependents you have, and a few other factors, this increase could either positively or negatively impact your circumstances.

To learn more about these changes and how they’ll impact you, reach out to a local tax professional.

Moving on, the mortgage interest deduction is now down from $1 million to $750,000. If you have $1 million in combined loans already, you will be grandfathered in. Otherwise, though, this change will apply.

Also, while homeowners were previously able to write off all state income taxes, you can now only write off up to $10,000.

We hope the information we’ve offered to you today has been helpful, but remember: We’re not tax professionals. To learn more about these changes and how they’ll impact you, reach out to a local professional who can guide you through these developments as they pertain to your circumstances.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.