Putting in a Non-Contingent Offer with a House to Sell
Navigating the transition from one home to another as a homeowner can be overwhelming. Juggling a new mortgage while still paying off the existing one can feel like a daunting task. But what if you've found your perfect new home before selling your current one? Enter the solution: a bridge loan.
What Exactly is a Bridge Loan? A bridge loan provides short-term financing to facilitate the move from your current home to your new one. It effectively bridges the financial gap between your existing mortgage and the purchase of your new property, sparing you the burden of managing two mortgages simultaneously.
How Does it Operate? Typically lasting 6 to 12 months, bridge loans utilize the equity in your current home to finance the acquisition of your new one. This allows you to place your current home on the market without delay, using the proceeds from its sale to swiftly repay the bridge loan. Essentially, the equity in your current home serves as collateral for the loan, enabling you to secure the down payment for your new home.
The Advantages of a Bridge Loan The primary advantage of a bridge loan lies in its ability to provide immediate short-term financing without the need to wait for your current home to sell. In certain scenarios, you may even have the option to defer payments for several months. Situations where a bridge loan could be advantageous include:
Inability to afford a down payment without proceeds from the current home sale.
Closing on your current home occurs after the closing date for your new one.
Rapid job transitions necessitate securing a new home before selling the old one.
Building a new home while still needing to reside in the current one.
Sellers in your area don't accept contingent offers.
Our team of mortgage experts specializes in facilitating swift financing solutions, even if your current home is still on the market. Reach out to one of our experts today to explore whether a bridge loan is the ideal option for you!