Welcome to our easy-to-understand guide exploring alternatives to bridge loan financing, specifically designed for future homebuyers who appreciate simplicity over financial jargon. At JVM Lending, we’re all about making your homebuying experience as smooth and as easy to understand as possible.
This is a scenario we see our clients run into often: They’ve found their dream home, and they’re eager to make an offer. There’s just one issue – they haven’t sold their current home yet but need the cash from selling their current home to buy their new home.
In the past, this situation might have led to stressful scenarios involving double mortgages and the hustle and bustle of multiple moves. But, what if we told you that there’s a simpler, more stress-free way to handle this?
Diving into the World of Bridge Loan Financing
Before we introduce the game-changing solution, let’s take a quick crash course on bridge loan financing. Traditionally, if you wanted to buy a new home before selling your current one, bridge financing was your go-to method.
A bridge loan is a short-term loan that helps you cover the cost of a new home before selling your existing one. It sounds convenient, right? Well, yes and no. While bridge loans can indeed provide the funds you need quickly, they come with a few significant drawbacks.
For instance, they typically have high-interest rates and need to be paid back in a relatively short amount of time. Plus, managing two mortgages at the same time can be a little overwhelming.
So, that brings us to the million-dollar question: Are there any alternatives to bridge financing that could make your homebuying journey more straightforward and less stressful? The answer is a resounding yes, and it’s called Catapult.
Meet Catapult: The Future of Home Bridge Financing
Catapult is an exciting new alternative to traditional bridge loan financing with the buyer’s comfort and convenience in mind, focusing on simplicity, affordability, and flexibility.
With Catapult, you no longer need to worry about juggling two mortgages or dealing with the potential stress of moving more than once.
How Does Catapult Work?
First, you have a free chat with the friendly folks at Catapult to check if you’re eligible. If your current home has a good amount of equity (the difference between the value of your home and the amount you still owe on your mortgage), then you’re likely a good fit. Catapult then assesses the value of your home. If all goes well, you could be approved within just 48 hours.
As you get ready to close on your new home, Catapult sends you a payment worth 70% of your home’s value. This money is intended to pay off your mortgage, which helps to remove it from your Debt-To-Income (DTI) ratio. Any leftover funds are yours to keep.
After this, Catapult takes on the title to your home. This means you’re free to sell your home with your chosen real estate agent, at a pace that suits you. Once you’ve sold your home, Catapult sends you the remaining funds, typically within 1-2 business days of closing.
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Why Should You Consider Catapult Over Traditional Bridge Loan Financing?
There are several reasons why Catapult is an excellent alternative to traditional bridge loan financing:
- Simple Process: Unlike the complex calculations and processes associated with bridge loans, Catapult offers a clear, streamlined procedure. Starting with a complimentary onboarding call, the Catapult team evaluates your eligibility based on your current home equity. Once your home is valued, you could receive approval within just 48 hours!
- No Double Mortgages: With Catapult, you can bid farewell to the stress of handling two mortgages at once. As you near the closing date of your new home, Catapult issues a payment covering up to 70% of your home’s valuation. This payment is designed to cover your mortgage payoff, effectively removing it from your Debt-To-Income (DTI) ratio.
- Flexibility and Control: Unlike bridge loans that often come with strict repayment timelines, Catapult allows you to sell your old property at your own pace. Once the sale is complete, Catapult provides you with the remaining funds, typically within a mere 1-2 business days of closing.
- Affordability: Instead of the fluctuating interest rates and potential hidden fees associated with bridge financing, Catapult charges a transparent flat fee of 2.5% of the final purchase price.
In a nutshell, Catapult offers a streamlined, user-friendly solution to the homebuying process, without the stress and complexity associated with traditional bridge loan financing. It’s a revolutionary approach to homebuying, designed to put you in the driver’s seat of your financial journey, providing peace of mind as you transition seamlessly from your old home to your new one
Start Your Stress-Free Homebuying Journey with JVM Lending & Catapult
Navigating the homebuying process doesn’t have to be daunting. At JVM Lending, we stand by your side, providing support and guidance every step of the way. With us, homebuying becomes an exciting journey rather than a stressful task.
Our partnership with Catapult, a modern alternative to traditional bridge financing, ensures a smooth home-buying experience. Our team of experts at JVM Lending are always at your service and available 7 days a week, helping you make well-informed financial decisions for your home purchase.
Working with JVM Lending means partnering with a trusted ally dedicated to turning your homeownership dreams into reality. We value our clients and strive to deliver personalized, top-notch services. There’s no need to navigate the complex world of bridge financing alone. With JVM Lending, a better, stress-free way to finance your next home is just a click away.
Reach out to our team today to discover how we can transform your home-buying experience. Your perfect home is waiting, let’s embark on this journey together!