I blogged about “Our Most Popular Bridge Loan Ever” in September – and that particular loan has garnered more interest than almost anything else we offer.
This shocked me because I had no idea that there was so much demand for bridge loans. In light of that, I am blogging about another bridge loan offering of ours that may be even better.
A bridge loan, as most readers know, is a short-term loan that typically taps into the equity of a borrower’s departing residence to allow that borrower to buy a new home before she sells her departing residence – the classic solution for “how to buy before you sell.”
How Our Most Popular Bridge Loan Works
The bridge loan I blogged about in September works like this: Our investor will lend up to 75% of the value of the departing residence, but without paying off the first mortgage. So, if our borrower has a $1 million home with a $500,000 mortgage, our bridge investor will loan $250,000 of cash to our borrower (to get a 75% combined loan-to-value ratio) – with NO fees and NO payments due. But – our investor will require our borrower to pay 2.4% of the sales price of the borrower’s departing residence when it sells.
As I mentioned in that blog, 2.4% of the sales price might seem “pricey,” but that still often works out to be much less than the fees associated with most other bridge loans. This, coupled with no payments, is why this bridge loan has proven to be so incredibly popular.
This program is very popular for several reasons: (1) no upfront fees; (2) no payments required for the cash-out portion of the bridge loan; and (3) the investor will also sign a contract to purchase the home within 90 days – which allows lenders to ignore departing residence mortgage payments – which in turn makes qualifying “to buy before you sell” much easier.
There is, however, another similar option that is better for two reasons: (1) it is much cheaper; and (2) the investor gives borrowers a full 120 days, vs. 90 days, to sell their home.
JVM’s Newest And Even Better “How To Buy Before You Sell” Offering
Enter JVM’s newest and greatest offer: JVM’s EasyPath Mortgage Program
The program is very simple, and it works like this:
Our investor charges borrowers $2,500 for a guarantee that they will buy our borrower’s departing residence. And… boom. It is that simple.
Our investor does not lend any money at all. But their guarantee to buy the departing residence no matter what allows lenders to ignore ALL of the payments associated with the departing residence.
And that of course makes it much easier for borrowers to qualify for a new home before selling their old home.
If borrowers need cash to buy their new home, they can max out their equity lines before they enter into an agreement to sell their home to our investor.
And here’s the best part: our investor gives our borrowers a full 120 days to sell their homes for top dollar themselves. Our investor only steps in if the home does not sell, and we are of course happy to explain all of the details to any interested agents or borrowers.
I should also note that we have several other bridge loan offerings, including a bridge loan that is nearly identical to the one I discuss at the top of the blog, but it will pay off first mortgages too! It is, however, only available in the Bay Area.
Please reach out if you’d like any EasyPath Mortgage Program materials to share with your clients.
