How Bridge Lending Works

Often when a homeowner decides to sell their current home and purchase a new one, it can be difficult to first secure a contract to sell the home and then close on a new one within the same period.

What’s more, a homeowner may be unable to make a down payment on the second home before receiving money from the sale of their first home. In this case, the homeowner can take out a bridge loan against their current home to cover the down payment on their new home.

This is where we “bridge the gap” between the new purchase and the sale of their old home.

Once the borrower’s first home is sold, they will use the sale proceeds to pay off or pay down the bridge loan and the remaining balance will be refinanced into a long term mortgage.

A bridge loan is a great short-term loan option (11 month term, but with no pre-pay penalty) for someone who is looking to sell their home quickly...and be sure to work with an amazing real estate agent that will prep the home to the fullest and sell for top dollar.

A?bridge loan is a good fit if you:

• Have chosen a new home and are in a seller’s market in which houses sell quickly (like today!)
• Want to purchase a property but the seller won’t accept an offer contingent on the sale of your current home
• Can’t afford a down payment on the new property without first selling your current home

If you have any questions, or would like to discuss our offerings further, don't hesitate to reach out.

Warmly,

Sofia Nadjibi

[email protected]

(415) 706-8465