Looking to buy a house while waiting to sell your current home, a bridge loan will assist you to achieve that. A bridging loan is a sum of money lent by the bridging finance companies to cover an interval between two transactions.
These loans are temporary loans from a period of two weeks to three years to bridge the gap between the sales prices of a new home and buying mortgage whereby the buyers’ current home had not yet sold. Or to finance a business until gain a permanent funding.
Bridging loans have major benefits it allows one to buy a new home without a contingency. The funds from the bridge loan can be used to make down payments for your home offer to move up and to look good to a seller. This loan is secure to buyers existing home. The bridging companies provide finance that create a bridge between the participants
instant cash flow requirement, it does not only assist to lent money for those who want to buy or sell their homes, you can get a bridge loan if you buy a home at auction to help you beat others. Those who want to renovate their homes when expecting a quick sale after the renovation, bridging loan can help achieve that or when you are relocating from one city to another bridge loan can also assist to get you the down payment if you are short on cash. When you are investor looking to buy property or buying a news construction home a bridge loan can help with funds before you can secure funds needed.
Bridging loan is meant to provide funds to help pay off the balance amount, it is also a short term loan with no buying restrictions it allows you to have enough time to search for a perfect home without the pressure of selling the current one, it gives you opportunities that you might have miss out on the housing market. Applying and
qualifying for a bridge loan is a fast process compared to the traditional loans. Another benefit is that they may allow you to start making paying after a few months depending on the terms of the bridging loan, it also gives you payment options.
They are types of bridge loans available, the personal property when selling current
home and buying another,
- A hospitality bridge loan when looking to secure permitted funding.
- An industrial loan when renovating a company building or upgrading it.
- Retail when closing a retail space or wanting to quickly get a new on before
- Multifamily this loans can be used to renovate units which will lead to raise
- Office space wanting to transition or upgrade from one office space to another.
To check is a bridge loan is right for you, it is important check the six elements, the housing market, check your finances and creditworthiness, whether you have saved enough for a down payment, check if you qualify for a home buying program and for down payment program.