When you are considering a home purchase, it is important to have all of the information about your financial situation in order. One thing that you may not have considered is how to finance the purchase of your home. There are a few options available to you, and one of them is a bridge loan.
A bridge loan is a short-term loan used to cover the gap between the purchase of a new home and the sale of the old one. It’s also called a swing loan or gap financing. Bridge loans are typically for six months or less, and they carry a higher interest rate than a traditional mortgage.
Here are the main benefits of using a bridge loan:
- Bridge loans provide a safety net in the event that you sell your old home before purchasing a new one. This way, you won’t have to rent and can avoid any potential problems that may arise from not having a permanent residence. Bridge loans are less expensive than traditional mortgages and typically carry a lower interest rate.
- Bridge loans allow the purchase of a new home, without notable restriction, while placing a current home on the market. This type of loan allows you to borrow money against the equity in your current home, which can then be used as a down payment on your new home. The best part is that there are no notable restrictions when using a bridge loan, so you can still buy the home you want without any problems.
- Bridge loans allow you to put a down payment on a new home without using the profits from selling your old one. Bridge loans are typically for six months or less, which gives you time to sell your old home. They can be a helpful tool if you’re confident that you’ll be able to sell your old home within the loan’s term.
- With a bridge loan, payments can be deferred or interest-only until you are able to sell your old home, which provides a certain amount of flexibility. This can be helpful if your old home is taking longer to sell than you expected.
Final Thoughts
A bridge loan can be a helpful tool for those looking to buy a new home before they sell their old one. By providing short-term financing, it can help you avoid the hassle and expense of moving twice. Bridge loans are also a great option for those who need to renovate their home before they sell it. They can be used to cover the costs of home repairs, upgrades, or even landscaping. Finally, bridge loans can be a useful way to get started in real estate investing.
Unfortunately, in today’s economy, it can be difficult to get a loan for a new home or other investment. That’s where Global Integrity Finance comes in. We offer bridge loans to help you get started.
Our loans are available for both residential and commercial properties. We have a variety of terms available, so you can find the loan that fits your needs. And we offer competitive interest rates, so you can keep your costs down.
Global Integrity Finance is a nationwide, direct, hard money lender. They provide many different types of real estate investment products for brokers as well as borrowers. Located in McKinney, TX, they’ve been serving the community for 25+ years and now serves our entire nation. They truly have a comprehensive understanding of the mortgage industry unlike any other lender.
