We mention this often, but Home Equity Lines of Credit are the best “Bridge Loans” for buyers who want to buy a new home before selling their current home.
They are the cheapest, easiest and fastest way to access cash to use for the purchase of a new home. U.S. Bank for example will lend up to a 90% combined-loan-to-value ratio. This is a much higher loan-to-value than most bridge loan lenders will lend to.
Borrowers need to get an equity line before they list their home of course. And, borrowers should know that equity lines have an “early closure fee” of $500 to $1,000 that will be charged if or when the home is sold. This fee is still much cheaper than typical bridge loan fees, and it is only fair that an equity line lender should recoup its expenses.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
