Loan Options
Bridge Loans
Bridge the gap between the sale of your existing home and the purchase of your new one.
- Use the equity in your home for the down payment on a new one
- Free yourself from the rush to sell
- Confidently make offers on a new home
What are the Benefits of a Bridge Loan?
Move Fast. Tight closing schedules are common in competitive markets. With the down payment already in hand, you can confidently agree to a quick close knowing you have additional time to sell your home.
Get More. The sale of the existing home doesn’t have to be rushed. Take your time staging the home, waiting for the best offers and reviewing them carefully, and whatever else you need to get the most out of your listing.
Be More Competitive. Sellers may not want the risk that comes along with accepting an offer that is contingent upon the sale of the buyer’s home. Because Bridge Loans allow you to make non-contigent offers, they make you a more favorable buyer.
What is a Bridge Loan? How Does it Work?
Bridge Loans are short-term, second mortgages with interest-only, fixed-rate payments. Once the borrower’s existing home sells, the loan’s principal balance is completely paid off.
Bridge loans are not offered by every lender, so if you want to know if a bridge loan is right for you, talk to an expert from UHL.
How do I know if a Bridge Loan is right for me?
Bridge loans are especially helpful to buyers in transitional periods, such as relocation or in need of fixing up their current home. Bridge loans also allow borrowers to quickly receive and pay off funds whereas other options, such as home equity loans, may have longer application, approval, and repayment periods. However, you must qualify for a Bridge Loan based on the combined housing debt of your new and existing home. The best way to find out if a Bridge Loan is the right mortgage solution is by getting personalized advice from a mortgage banker.
