In today's market of multiple offers and fast-moving real estate, offers contingent on the sale of another property often can be pushed aside. Yet, many clients are afraid to sell before they find a new home.
Here are some ways you can buy before you sell:
- 401K loan
- Family gift
- Smaller downpayment
- Bridge loan
- Line of credit on a current property
- Cash out refinance on a current property
One option, a bridge loan, pulls equity out of your current home to use for a down payment. When your present home sells, the bridge loan is paid off. If you qualify, you can borrow up to 80% of the value of the new home (minus any existing mortgages), taxes and insurance are not included (reducing the amount of cash needed to carry two mortgages), and the loan is interest only for up to 12 months. The bridge loan can also be used to pay off any existing mortgage, further reducing the carrying cost of two homes.
We can help you facilitate both a bridge loan and new home mortgage simultaneously. Reach out to us to connect you to the right loan originator today to determine your buying power with a bridge loan or any other financing option to arm you to compete in this competitive market. We are here to consult on the best path for you!