Buying Before You Sell? A Bridge Loan May Help
Bridge financing may help qualified homeowners purchase their next home before their current home sells. Available options depend on your equity, financial situation, property, and loan program requirements.
When a Bridge Loan May Be Worth Considering
Buying Before You Sell
Using Equity From Your Current Home
Managing Two Real Estate Timelines
Comparing Your Financing Options
Other Services
Make your dream a reality. Get pre-qualified for your mortgage.
Get started today by contacting Justin Toenjes or feel free to ask us questions about the loan process.
NEXT STEP
Not Sure Where to Start?
Buying a new home before selling your current one can raise questions about timing, equity, and how to structure the financing.
Justin Toenjes can review your current home, estimated equity, purchase plans, and overall financial situation to help you understand which financing options may be available and whether bridge financing is worth considering.
- Review Your Situation
Discuss your current property, anticipated sale timeline, next-home purchase, and the equity you may have available.
- Understand Your Options
Justin can explain available financing approaches, how they generally work, and the factors that may affect qualification so you can make a more informed decision.
FAQ
Questions About Bridge Loans?
A bridge loan is short-term financing designed to help cover the timing gap between buying a new property and selling an existing one. The structure, repayment terms, and qualification requirements can vary by lender and loan program.
It may. For qualified borrowers, bridge financing can provide another way to structure a purchase when proceeds from the sale of the current home are not yet available. Approval and available options depend on the borrower's financial situation and the specific loan program.
Equity is often an important part of bridge financing, but the amount required can vary. Your current mortgage balance, property value, purchase plans, and the requirements of the available program all need to be considered.
Bridge financing can involve interest, lender fees, closing costs, and the possibility of carrying expenses related to two properties for a period of time. The actual costs depend on the financing structure and should be reviewed before deciding whether a bridge loan makes sense.
That is an important consideration before using bridge financing. Loan terms vary, so homeowners should understand the repayment requirements, carrying costs, and available options if the existing property does not sell within the anticipated timeframe.
