In today’s unique real estate market, you may find yourself in a situation where you need to buy a new home before your old one has sold. In such an instance, it can be challenging to find funds for a down payment, qualifying for both mortgages, and trying to move out of one home and into a new one to meet tight buy/sell timelines. Although making your offer contingent on the sale of your home is an option, many sellers aren’t interested in such contingencies in our current market.
The West Shore Bank Bridge Loan is designed to address these issues, giving you an attractive option for such a circumstance while providing more control over your equity and your timeline.
In short, this loan uses the equity in your current home toward the purchase of a new home by putting both properties on one mortgage. This is the “bridge”, and these are some of the benefits...
- It’s a loan so it allows you to buy the new home while providing plenty of time to prep and sell your current home, reducing the stress of having to move quickly.
- Requires interest-only payments on one mortgage instead of two separate full mortgage payments. This makes it easier to qualify for financing for this buy/sell scenario.
- Allows you to utilize the equity you’ve already got, so no need to find more cash for a down payment on the new home.
The loan wraps up once you’ve sold your old home. At that time, you’ll refinance to a mortgage on just the new property and the old property is released. Or if there are enough proceeds from the sale of your old home, you might be able to pay off both completely.
The bridge loan does carry standard closing costs which will likely include title work and appraisals on both properties. Customers must also qualify for both the bridge loan and the final loan. For more details, discuss your scenario with a Mortgage Loan Officer at West Shore Bank to see if it’s a good fit or if other options could work too. Contact a mortgage lender online or meet with a lender at one of our convenient locations: Ludington, Onekama, Hart, Manistee, Scottville, Frankfort, or Traverse City, MI.
All loans are subject to credit approval