Bridge loans info
Bridge loans information! This is a video about bridge loans. Most realtors know the terminology bridge loans. It’s almost like a home equity line. You get access to the equity in your current home to help use as a down payment and bridge you to the new property. So everybody always says, I’ve heard it a thousand times, “my realtor said just get a bridge loan.”
Can I really get a bridge loan?
Well, that’s a possibility. But to be honest, it’s a pretty small possibility. Because what happens is the borrower needs to qualify for their current mortgage, the bridge loan mortgage and the new mortgage, and then any other debt that they might have. That’s an awful lot of debt for them to qualify for. So getting a bridge loan is not the immediate answer when somebody wants to buy a new house before selling their current house.
You have to qualify with the extra debt?
Yes, they have equity. Yes they can use that as cash for the down payment on the new home. But don’t forget they have to qualify for all that debt. And in my decades in the mortgage business, I’ve done some bridge loans. But boy, people have to have a lot of income to qualify for all that debt. So I’m not saying it’s impossible. But just realize it’s not the panacea and the easy answer that you might think it is. If you want to know more about bridge loans, feel free to email me, call or text, and we can talk in more detail. But just just a quick bullet point that, they’re not as easy to get as you might think. That is it for bridge loans information. Thanks.