Buying a new home before selling your current one can be a challenge, especially in a competitive market. Bridge loans provide a solution, allowing you to make a strong offer without a home sale contingency. Here’s a look at three bridge loan options that can help you buy now and sell later with confidence.
Below are three bridge loan options to make your move easier:
1. Back Up Offer Bridge Loan
✔ How It Works: Unlocks equity from your current home for a down payment on the new one. Meanwhile, the lender provides a backup offer on your existing home—guaranteeing a buyer if it doesn’t sell within a set timeframe.
✔ Why It Helps:
2. Cross Collateralization Bridge Loan
✔ How It Works: Uses both homes as collateral for a single short-term loan, potentially funding your full purchase. Once your old home sells, the bridge loan is repaid.
✔ Why It Helps:
3. Equity Unlock Bridge Loan
✔ How It Works: Pays off your existing mortgage and unlocks cash from your home’s equity to fund your new purchase. No monthly payments are required until your old home sells.
✔ Why It Helps:
Bridge Loan Options at a Glance: Quick Comparison
Which Option Is Right for You?
Each bridge loan solution provides a non-contingent offer advantage while allowing a smoother transition to your next home. If you’re looking to move before selling, talk to a mortgage advisor to explore which program best fits your financial situation.
Ready to buy your next home before selling? Contact us today to learn more!
Loan Originator
Barrett Financial Group, L.L.C. | NMLS: 1635182