Why Would a Homebuyer Want to Finance More Than 100% of The Purchase Price?

In today's real estate market, for some buyers, mortgage financing can be restrictive. When an opportunity arises, it may make sense to seize the moment.

When using an Arrival Home Loans bridge loan, there are a few circumstances where it makes sense to finance more than 100% of the purchase price of the new home. In this short article, we will discuss 3 situations where cash is king and financing more than the new homes purchase price may be a sound decision.

1. Buyers who may not want to burn thru current reserves when paying the mortgage on their current home and paying the interest only mortgage on the new bridge loan, may want additional cash reserves to make the payments on the new bridge loan until their departing home sells.
2. It is no surprise that freshened up, vacated and professionally staged homes sell faster and for more. Some soon to be home sellers, may need a little additional cash to vacate, complete small renovations and professionally stage the home to maximize the selling price.
3. Some buyers may desire to complete renovations or minor improvements to the new home they just purchased prior to moving in. Having additional cash to make the home exactly as they desire, can add additional value.

There may be other reasons that a buyer may want to finance more than 100% of the purchase price and Arrival Home Loans will consider all reasons when approving a loan.

When the CLTV and equity allows, Arrival Home Loans is one of the few private money lenders, who offers alternative financing with the flexibility that is sometimes needed to make all parties happy.

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