BRIDGE LOAN

BRIDGE THE GAP BETWEEN SELLING YOUR CURRENT HOME AND PURCHASING A NEW ONE!

Buying a new home while trying to sell your current home makes it difficult to obtain financing. Your current mortgage affects your debt-to-income ratio and limits your ability to qualify for a new mortgage loan. Plus the stress of carrying two mortgages can be daunting. Mortgage Maestro Group’s Bridge financing can help you with the transition.

What Is the Bridge Loan Program?

Our bridge loan program offers the financial solution for juggling two houses and mortgages. A bridge mortgage is a short-term loan that allows you to finance your new home before you sell your existing house. This setup lets you make an offer on your new house without adding a contingency to sell the current home first.

The application and funding process for a bridge loan differs from getting a traditional mortgage. Your loan can be approved and funded much faster, allowing you to purchase your second home without delay. You must meet very stringent requirements, such as a good credit score and a low debt-to-income ratio. We will even get your credit pre-underwritten to create certainty for the closing on your next home before you contract on it.

How the Bridge Loan Program Works

When you apply for a bridge home loan, we’ll consider your current mortgage balance and the value of the home you’re going to sell. Then you’ll tap the equity from the home you’re going to sell and use it for the down payment on your next home.

For example, if you’re selling a home for $800,000 and buying a new home for $1,000,000, you could borrow up to 80% or $750,000 maximum of the available equity in your departing residence.

To qualify for our bridge home loan, a low DTI ratio can help you secure a loan with the most favorable interest rates.

When to Use a Bridge Home Loan

Our Bridge Loan programs can help you purchase a new home before your existing home is sold.  In an ever changing real estate market, sellers may be reluctant to accept an offer that includes a contingency to sell your home, but your mortgage lender likely won’t let you qualify for a new loan until you pay off your current mortgage.

Close with Confidence Bridge Loan:

This loan program is designed for borrowers who are under contract for the sale of their existing property and want to make an offer on another property without a sales contingency.  With this type of loan, you can take the equity from your current home (that is a pending sale) and use the funds to purchase a new home. Your existing mortgage is paid off, and when you sell the bridge loan is paid off. You don’t make payments on the bridge loan.

Close with Confidence Bridge loans include:

  • Departing residence must be listed for sale
  • Loan amounts up to $2MM
  • Loan term of 12 months
  • Primary residence
  • Second Homes and Investment Properties are eligible
  • W2 borrowers and self-employed borrowers both eligible
  • Flexible debt ratios
When calculating the debt-to-income ratio for your loan application, we can exclude the payments for your current home, since the mortgage is paid off with the bridge.

Debt Inclusive Bridge Loan:

This loan program is designed for borrowers who want to take equity from their current home that is listed for sale and use the funds to purchase another home.  All of the debts for the departing residence including any payments on the bridge loan (if any are required) are factored into the borrowers total DTI when purchasing the new home.

Qualifications:

Close with Confidence Bridge loans include:
  • Departing Residence must be pending sale
  • Bridge Loan Amount up to $400k
  • Loan Term – 6 months
  • Min FICO 680
  • Max CLTV- 80%
  • Max DTI- Ratios based on max allowed by purchase transaction, but not to exceed 50%
    • Can exclude departing house payments if pending sale requirements are met

Debt Inclusive:
  • Departing residence must have signed listing agreement
  • Bridge Loan Amount up to $400k
  • Loan Term- T months
  • Min FICO 680
  • Max CLTV- 70%
  • Max DTI- Ratios based on max allowed by purchase transaction, but not to exceed 50%

How Bridge Loans Help Real Estate Investors Real estate investors often purchase properties for a short time until they flip them for a traditional sale, offer the deal to another investor, or convert them into rental properties. A bridge loan can help you secure the investment property you’re looking for while you’re working out the long-term financing.

Who Is Eligible for a Bridge Loan?

To qualify for a bridge home loan, borrowers must meet stringent criteria. There is flexibility for debt-to-income ratios. We’ll also evaluate your credit history and FICO score. A higher credit score will positively affect your interest rate.

The most important part of the calculation is the loan-to-value ratio of the home you’re looking to purchase. If you have a good amount of equity in your current home, it will be easier to qualify for a bridge loan.

Is a Bridge Loan Right for You?

We can help you with all of your financing needs for your new home. If you’re interested in bridging the gap and buying your next home before your current home sells, we want to help. Use our contact form to send us a message or give us a call.

Make sure to read Top 5 Reasons To Use A Bridge Loan

Reach out to us today to see if we could help you bridge the gap!