Bridge Loans

Bridges. They let you get from one place to the next, right? It's the same thing with bridge loans. And just like the Brooklyn Bridge is different from the Golden Gate, there are a number of different ways to structure your bridge financing. Click here to get pre-approved for bridge loan financing.

There are two main reasons to consider bridge financing if you own a home already and are shopping for a new home:

First, using bridge financing instead of a sale of home contingency makes you a much more attractive buyer in the eyes of home sellers.

The second reason is convenience. With bridge financing, you can take some time to move from your old home to your new one. No rushing to clean the old house, close on the old house, close on your new home, and move all your earthly possessions in the same eight-hour day. (It can happen that way and often does, but it's a minor miracle each time.)

Bridge loan financing is highly customized, and our Loan Consultants are experts at helping design bridge financing to meet your unique circumstances. Each approach has its pluses and minuses. Here's a brief overview:

Traditional bridge loan

1st mortgage on your old house up to 90% of its appraised value. Your existing first mortgage and home equity loans/lines are paid off by the bridge loan. You walk away with cash to be used for the down payment on your new home.
There are no monthly payments - accrued interest is paid when your old home is sold and the bridge loan is paid off
Interest rate is approximately 1% over the Prime Rate
Closing costs are approximately $900 to $1,400 (because a new appraisal, title insurance, and closing must be completed)
Closing on bridge loan must occur at least 4 business days before the closing on your new home because of the federally required 3-day right of rescission period
If you haven't sold your home in the first six months of the bridge loan, you must pay the six months of accrued interest to extend the bridge financing for an additional six-month period.

Home Equity Line of Credit on your old house - if you have a home equity line of credit on your old house, we'll often recommend you use it for the down payment on your new home. Accunet can also provide a new home equity line of credit on your old house if it's not already listed for sale.

The rate can be as low as 1% under Prime for the first six months
Closing costs range from $0 to $500
Monthly payments are required - typically just the interest due
The home equity line can be put in place well before the closing on your new home - you don't' borrow the money until you need it. A line of credit on your old house must be put in place no later than four business days before the purchase of your new home.
Your existing first mortgage stays in place and you must continue to make payments on it in addition to the new home equity line of credit and first mortgage on your new home. However, the first payments on the new home equity payment and first mortgage won't be due for about 30-60 days from closing.

Home Equity Line of Credit on your new home- depending on your income, credit score and other assets, the best bridge financing choice might be a new home equity line of credit on your new home.

The rate can be as low as 1% under Prime for the first six months.
Closing costs range from $0 to $500, and closing occurs at the same time you buy the new home.
Monthly payments are required - just the interest due if you choose a line of credit or interest-only home equity loan
The first payment will be due 30-60 days from your new home closing date
If you choose a home equity line of credit or interest-only fixed rate home equity loan, you can pay down the principal balance after your old house sells, and then you'll enjoy lower monthly payments on the remaining balance, if any.

Will you qualify for bridge financing? There's only one way to find out and that's to obtain a FREE pre-approval. Or call us toll free at 877-299-9797.