By: Robert Walker
Loan Officer, Manhattan
HomeStar Bank & Financial Services
NMLS: # 426223
Phone: (815) 361-4466
Don’t Miss Out on Your Dream Home – Is a Bridge Loan Right For You?
What are Bridge Loans?
Bridge loans are temporary loans used to purchase a home prior to the sale of the buyer’s existing home. The structure of a bridge loan varies based on the buyer’s situation. Depending on how the loan is structured, it could be paid-in-full or refinanced upon the sale of the borrower’s existing residence.
When buying another home before selling an existing home, there are two common ways to fund the down payment for the new home. One is through financing either a bridge loan; another maybe to finance a home equity loan (or home equity line of credit). The funds from this financing is used as a down payment or closing cost to purchase the new home.
Both loan options have their benefits. I recommend for home buyers to speak with me or another one of our experienced Loan Officers at HomeStar to determine which loan option is best for their specific situation.
Home Buying Benefits of Bridge Loans
- The buyer can immediately put their home on the market and purchase without restrictions.
- If the buyer has made a contingent offer to purchase and the seller issues a Notice to Perform, the buyer can remove the contingency to sell and still move forward with the purchase.
- In seller's markets, many sellers will not accept a contingent offer. Therefore, if you have a home to sell, you may have to use a bridge loan or similar product to put in an acceptable offer for the home you wish to buy.
As a professional Loan Officer I have experience securing bridge loans for my clients and nothing makes me happier then to offer products and services that help my clients buy their dream home. Contact me if you have any questions or to see if a bridge loan is right for you. My office number is (815) 361-4466 or email me at RWalker@HomeStarBank.com.