Concern over the market’s lack of inventory has many homeowners questioning whether or not to make a move – what if they find their dream home and need to put down an offer right away, but all of their cash is tied up in the property they’re trying to sell? Avoid this stressful domino effect with a bridge loan.
“A bridge loan is a great tool to use when you want to list but, but you’re worried that the closings won’t line up in the way you need,” said Steve DiMarco, president of Key Mortgage Services, Inc. “Through this short term program, the seller can pull the necessary cash out of their listed property to use for a down payment on their new home. This should give them that extra boost of confidence they need to buy and sell.”
A bridge loan draws from the equity of the listed home and gives it to the seller for six months. By tapping into these funds, the homeowner won’t be forced to liquidate other assets to provide the money needed to purchase their new home. The money can also be used to pay off any existing mortgages so that there is only one interest-only payment.
If you have a questions about how you can benefit from a bridge loan, please speak with a Key Mortgage loan officer.