A bridge loan can be an ideal tool to gain access to some funds using the equity of your current home to act as collateral for the loan to go towards the purchase of your new home. This is particularly effective when there is a delay between the sale of a property and the purchase of another, as the bridge loan can give them the funds they need immediately to help close the deal on their new home purchase. This type of loan is provided to borrowers with good credit score and a low debt to income ratio.
In essence a bridge loan bridges together 2 mortgages of your two homes, which gives you flexibility when waiting for your home to sell. Bridge loans d0 have some risks to consider, so for that reason lenders generally offer bridge loans for real estate at no more than 80% of the combined value of the two homes. This can leave the borrower needing to have a substantial amount of home equity, or a large amount of savings. At Clover, our mortgage brokers and agents are specialists when it comes to providing bridge loans even in the trickiest situations. If credit, income, or loan to value is a problem, ask one of our mortgage agents about your options.
If you need a bridge loan ASAP, Clover Mortgage can help you get APPROVED and get your money in as little as 48 hours!