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    Buying a new home before selling your current one can be overwhelming, and bridge loans have been the go-to solution – until now. Among the various financing options available, bridge loans have traditionally been a popular choice. But is it the best one? In this post, we will explore the pros and cons of bridge loans, how they work, and why our partnership with Catapult might be the game-changing solution you need.

    The Future of Bridge Loans

    At JVM Lending, our mission is to make your homebuying experience as simple and stress-free as possible. As part of our commitment, we are excited to incorporate Catapult into our repertoire of financing options. Catapult offers an innovative and more convenient alternative to traditional bridge loans, designed to streamline the process of buying a new home before selling your old one.

    Choosing JVM Lending for your homebuying journey ensures that you have a team of seasoned experts guiding you every step of the way. Our experts leverage modern and efficient tools like Catapult to deliver a seamless and stress-free homebuying experience, offering you the best alternatives to traditional financing options such as bridge loans. With Catapult and JVM Lending, your path to your dream home becomes a lot smoother.

    What is Catapult?

    Catapult is a revolutionary way to bridge the gap between your current and future home. It allows you to buy your new home before you’ve sold your old one, so you don’t have to worry about juggling multiple mortgages or having to move multiple times.

    Catapult offers numerous benefits that make it a superior choice to a bridge loan. It simplifies the process, removing the need for managing multiple mortgages or making multiple moves, common complications associated with bridge loans. Catapult’s user-friendly approach also enables a quicker transition to your new home, an advantage that is particularly beneficial in competitive housing markets.

    With JVM Lending and Catapult combined, you can trust that you’ll have a team of experts guiding you through the entire process, making sure you have a stress-free, successful homebuying experience.

    NOTE: Catapult is currently only available within California. 

    Understanding Bridge Loans: Definition and Function

    A bridge loan is a short-term loan offered by several lenders, intended to ‘bridge’ the gap between the sale of your current home and the purchase of a new one. This type of financing can be especially beneficial when you need to act quickly in a competitive market.

    The Pros and Cons of Bridge Loans


    Like all financial instruments, this type of loan comes with both benefits and drawbacks. On the plus side, it can provide the necessary funds to secure a new home without having to wait for the sale of your existing property. It’s a convenient solution, given that many top lenders offer this service.

    Bridge loans come with both advantages and disadvantages. On the positive side, a bridge loan for home purchase can provide the funds you need to make a down payment on a new home without having to wait for the sale of your current property. They’re also convenient since many of the best bridge loan lenders offer them.


    Nevertheless, bridge loans are not devoid of challenges. As a form of short-term financing, they are typically associated with higher interest rates compared to more traditional loans and come with a brief repayment period. This combination can make bridge loans both costly and risky.

    Furthermore, the necessity to manage two home loans simultaneously can contribute to significant financial strain and stress. Essentially, you find yourself juggling two mortgages at once, which, in addition to the accelerated repayment terms and elevated interest rates, can make the bridge loan experience taxing and financially strenuous.

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    Bridge Loan Vs. HELOC

    An alternative to this short-term solution is a Home Equity Line of Credit (HELOC). This option allows homeowners to borrow against the equity of their current property. But, similar to short-term loans, a HELOC comes with its own set of risks. If the housing market slows and your property takes longer than expected to sell, you could find yourself grappling with multiple loan repayments.

    Enter Catapult: A Game-Changing Solution

    Here’s where Catapult, a revolutionary alternative to bridge financing, comes into play. Catapult provides a straightforward and cost-effective process that eliminates the need for managing double mortgages or moving multiple times.

    How Does Catapult Work?

    The process is surprisingly straightforward. It starts with a complimentary onboarding call to assess your eligibility. If you have substantial equity in your current home, you’re likely to be a good fit. After an in-house valuation of your home, Catapult could approve your application within 48 hours.

    As you get closer to the closing of your new home, Catapult will send you a payment worth 70% of your home’s valuation. This payout is designed to cover your mortgage payoff, removing it from your Debt-To-Income (DTI) ratio. Any surplus goes directly to you.

    Next, Catapult takes the title to your home, allowing you to sell your property with your preferred real estate agent at your own pace. Once the sale is finalized, Catapult provides you with the remaining funds, typically within 1-2 business days of closing.

    Why Choose Catapult Over a Bridge Loan?

    Catapult offers several key advantages over traditional bridge loans:

    1. Simplicity: Catapult’s process is more straightforward, with no need to calculate complex interest rates as you might need to with a bridge loan calculator or bridging loan calculator.
    2. Affordability: Catapult charges a flat fee of 2.5% of the final purchase price, potentially less than the cost of interest on a bridge loan.
    3. Flexibility: You sell your old house with your preferred real estate agent at a time that suits you, with the requirement to list your old home within 60 days.
    4. Security: Catapult’s capital comes from the co-founder’s family, minimizing the risk of delays.

    In conclusion, while bridge loans can be a suitable solution for some, the convenience, affordability, and security offered by Catapult make it a compelling alternative. With Catapult, you get a simplified, modern solution that keeps your home purchase on target, sans the stress of traditional bridge loans.

    Your Next Steps

    Embarking on your homebuying journey doesn’t have to be daunting. With JVM Lending and Catapult, you can confidently navigate the process of buying a new home while selling your old one.

    We understand that buying a home can be a difficult process. That’s why we offer our unique homebuying experience, designed to make the process as smooth and stress-free as possible. Our knowledgeable team of experts is here to guide you every step of the way, from finding the perfect home to closing on the deal.

    Catapult provides you with the ability to purchase a new residence before your current one is sold, so that you don’t have to deal with managing two mortgages or relocating multiple times.

    Don’t wait any longer – take the first step towards your dream home today and contact us to learn more about our services. Together, we can make your homebuying journey a success.

    NOTE: Catapult is currently only available within California. 

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