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BRIDGE FINANCING

Financing designed to let you move into your new dream home now

So, is your new home purchase ready to close, but your old one has not sold yet? If your current residence has been on the market for some time, but the closing date for your new property is getting closer, we can help.

 

Here's how it works


Using our bridge home loan program, we will finance up to 60% of the combined appraised market value of the two homes, minus any existing liens/mortgages against the sold property. This program works particularly well where the older house is either owned free and clear or has plenty of equity. When the real estate housing market is doing well, many homeowners are finding that they have significant equity, even if their home isn't selling quickly.

Usually, the first lien location; however, it is reviewed case-by-case. Borrowers are required to have good credit; however, credit scores are not considered for underwriting or pricing purposes.

 

Here are some key details

  • Interest-Only term of 11 Months

  • Competitive rates

  • No prepayment penalties

 

The collateral for the new home loans can be:

  1. Current home that is for sale

  2. New home being purchased

  3. Both Properties (NOTE: All homes being included must be located in the state of Florida)

 

Other Details:

 

  • Appraisal(s) - If two properties are being mortgaged, then one residential appraisal will be required for each home.

  • The new mortgage will assume first lien position

  • Reserves of 20 months of all debts (after closing) must be documented

  • Full-Doc qualification only (Tax Returns and Asset-based income are used to calculate income)

  • Borrower must have clean credit; however credit scores are NOT considered for underwriting qualification or pricing purposes.

 

This program offers an excellent way to alleviate the stress of looming contract deadlines from builders and sellers. Because we are a direct lender and not a broker, it means that we will underwrite your new loan and make the lending decision ourselves.

If you have questions about our Bridge Loan financing, we would be happy to discuss your scenario and answer any questions you may have.

At a Glance

Minimum Down Payment

Varies. Largely depends on the amount of equity in the old home.

PMI

None

Minimum mid-credit score

No score minimum; however credit history must be deemed acceptable.

Min/ Max Loan Amount

$100,000 - $6.5 Million

Loan Repayment Terms

Interest-Only for 11 months

Collateral

Property purchasing, Property selling, or Both (cross-collateralized)

Prepayment Penalties

None

KEY FEATURES  

  • No Escrow Impounds - Self-management of property taxes & homeowners insurance.
  • Reserves - Minimum 20 months of all expenses
  • Documentation - Full doc only - Asset Depletion may be used to qualify. Under this program, we calculate Asset Depletion as follows: Total liquid assets remaining after closing, less required reserves ÷ 240 = monthly income.  This allows us to qualify a borrower with over 30% more income than a traditional Conventional loan asset depletion calculation.
  • Appraisal requirement - If two homes are being used as collateral, then at least one appraisal per home will be required.  If a home is valued at < $1MM, then a second appraisal may be required.
  • Maximum Seller Contribution - 4% of sales price

LOAN SIZE LIMITS

$100,000 - $6.5 Million

ACCEPTABLE HOME TYPES

  • Single Family Homes
  • Planned Urban Development (PUD)
  • Condominium

OCCUPANCY

    Primary Residence Only *

* Note: a property will be automatically be considered an investment property if any of the following apply:

  • Only rented when the borrower is not at the property or rented for any length of time
  • If the property is managed by a firm handling rentals
  • Developments that allow for short term rentals, even if the borrower doesn't intend to rent the property
  • Anything with a 1-3 day minimum rental

This is not a commitment to lend.  Not all borrowers will qualify for the loan programs listed.  All program terms and conditions are subject to change and may be discontinued without prior notice.  Contact loan originator for program questions and scenarios.