Bridge loans are temporary financing against a property that a borrower will likely sell. In other words, if a buyer wants to buy a new home before selling his departing residence or existing home, he can get temporary financing against his departing residence to help finance his new home.
Bridge loans require strong credit, income, and equity positions, and they are costlier than other types of refinances (they cannot be done at “no cost”). Hence, they are not for everyone.
Bridge loans are, however, essential for all qualified borrowers who need to tap into equity in a departing residence in a hurry because they are unable to or do not want to sell their departing residence quickly.
Is a Bridge Loan right for you?
There is no one-size-fits-all for mortgage financing. The best way to determine whether a bridge loan makes the most sense for you is to talk to one of our mortgage experts at JVM Lending. Our experts can walk you through monthly payment scenarios, give you current interest rates, and discuss any other questions or concerns you might have.
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