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.