Bridge financing is available for those who are selling their current house and purchasing a new one. In some situations, the sale of the current house cannot take place before the purchase of the new property. For many families, the proceeds from the sale of their current home is often put towards the down payment of their new one. Unfortunately, if the new purchase takes place before the sale of the old home, a wrench can be thrown into your plans.
By offering Bridge Financing, you can gain access to short term financing to borrow the amount that you will receive from the proceeds from the sale of your home and apply it as the down payment to your new home. That way, once the sale of your old home finalizes, the proceeds can be used to pay back the Bridge Financing. Why offer this alternative over taking out a bank loan or line of credit? Sometimes mortgage lenders will not approve a mortgage for a purchase if the down payment is obtained from borrowed funds. Using Bridge Financing avoids this issue as it is an advancement on approved future funds. If you have any questions about how Bridge Financing works or if it is the right solution for you, contact Tekamar Mortgages today!