Typically, the funds from the sale of your current home are what help you pay for closing costs, down payment, moving expenses and more for your new home. But what if you aren't able to sell your home before you purchase a new property? What if you aren't able to use the cash from the sale of that old home to buy your new home? That's where a bridge loan can help!
A bridge loan is a short-term loan that provides homebuyers the financial support they need to purchase a new home before they’ve sold their current home, effectively "bridging the gap" between these two properties.
Here’s a few reasons for a bridge loan:
Bridge loans give major buying power in a seller's market. Homebuyer’s offers will not be contingent on the sale of their existing property. This way, the fear of hiccups between contract and closing is greatly reduced!