In today’s market of lower housing inventory, California homebuyers can look to this real estate financing program to assist in getting that new home.

Bridge financing allows the potential home buyer to offer a stronger purchase offer, with shorter days to close and an offer with the next best thing to all-cash offer – Private Money.  This is a proposition that many sellers could consider a huge bonus! Any resident of the Bay area, northern California and southern California, should be made aware of this as an option.

One of the most popular financing programs with us is our bridge loan program. When a borrower wants to purchase a new home before selling their current house, a bridge loan with us gives them the down payment they need to get into the new home with the convenience of a stress-free move.  It also overcomes the home loan qualification problem of high debt-to-income ratios, which can happen when you buy a new home while still owning your current home – 2 mortgages.

Our program’s conditions include a fixed rate with no prepayment premium for an 11-month term of interest only payments. We can offer this program for single family units as well as 1 – 4 units, when the buyer or borrower is going to be living in one of these units.

If this looks like a solution to your concerns about not selling your home before buying a new one, give our family owned & operated Private Money company at Sun Pacific Mortgage & Real Estate a call at 707-523-2099 or reach us through our website at www.sunpacificmortgage.com.

What options would a buyer have if they find the home they want to buy, but haven’t sold their present home? If the buyer needs the funds from the sale of their present home as a down payment on the new purchase, they can look to a bridge or temporary loan to solve their problem. A bridge loan is a loan that helps a current homeowner buy another new home, prior to the sale of their current house.  Once the sale is finalized, the bridge loan is generally paid off from the proceeds of the sale.

At Sun Pacific Mortgage we cater to this type of loan with a program that allows the borrower to obtain a short-term private money loan, with interest only payments. We have investors who will lend amounts up to $1.5 million. The interest rates are generally based on the loan to value – and can be a Bridge refinance loan for cash out of current home, a Bridge purchase loan to help buy the new home, or a Bridge loan that includes both the current home equity & the new home equity.

There is no prepayment penalty associated with this loan, but we do look for a loan to value of least 65% for refinances and up to 75% for purchases. Also, debt to income ratios are not considered with this loan program, nor is FICO scores.

If this is a solution to one of your problems, or the situation one of your clients is facing, visit our website at www.sunpacificmortgage.com or please call us at 707-523-2099 to find a fast, alternative and flexible solution.

There are pluses and minuses to both decisions, regardless of which one you choose. Therefore, let’s examine all off the possible consequences to buying a new home or selling first:

Pluses:

• Being able to snag a home when you see one you want.
• Fewer moving hassles and no storage fees.
• Easier selling process.
• Cash offers give you a firm competitive advantage.
• You might be able to avoid some capital gains taxes.
• Relieves the stress of living in your home while trying to sell it.

Minuses:

• You might need to juggle 2 mortgages for a while, but in a seller’s market which we are in now, this may not be much of a problem.
• Selling and buying on the same day may cause some unexpected problems, such as financing delays or schedule changes.
• You might need to borrow from your retirement savings for the down payment.

It would appear that the advantages far outweigh the cons in this scenario. But what are the options that allow for buying before selling?

Firstly, you could make a contingency offer allowing you to back out of the offer if you fail to sell your home on time. This is a definite “no-go” in today’s market where homes are being snatched up in fewer than a week in most cases.

Secondly, Buyers who use the equity tied up in their present home allows them to make an attractive cash offer and have a competitive advantage during these fierce bidding wars.

A simple solution to buying before selling is our popular Bridge Loan program. Using the equity in your present home to obtain enough money to make your down payment, allows you to quickly seal the deal on your new home. Sun Pacific Mortgage has been offering this program for owner-occupied and investment properties for 34 years in California. If you need fast money to secure your dream home, give us a call at 707-523-2099. Lately, we have saved many homebuyers from losing their sought-after dream home by providing the funds for them to purchase before selling.

One of our most sought-after financing programs, especially since the influx of multi offers occurring in home buying, has been our Bridge and Temporary Private Money Loan Programs.

Competition has been stiff over the past couple of years, prompting the need to make stronger initial purchase offers. Many of our Borrowers are looking for a solution that will allow them to purchase property before completing the sale of their existing home. The Bridge loan eliminates the need for any contingencies based on the sale of ones present home!

The Temp and Bridge loan programs also offer the use of equity, for assistance with a down payment on the new property.  We have devised a program that allows a term of 11 months with no prepayment penalty.  Rates primarily depend on Loan To Value.

If Private Money seems like a solution to your concerns about selling your home only to find you can’t find a replacement, give Sun Pacific Mortgage a call. With this program you can shop for your new house without the worries of your home selling in time.

We can be reached by phone at 707-523-2099 or by email through our website contact form: www.sunpacmortgage.com.