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Nova Star Home Mortgage
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Nova Star Home Mortgage
8 Greenwood Avenue
East Islip, NY
11730
631-224-1969
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By Carla from East Islip, NY
Posted Jun 11, 2015
1. On the Bridge loan, you can take out up to 85 percent of the value, and put it into a new home peymant is deferred for 6 months. That will enable you to #1 buy the new home, or build the new home #2 gives you time to sell your other home.2. You are still responsible for all mortgages.3. Lenders will take a hard look at your credit, your middle credit score needs to be in the 600 s for the Bridge loan. The middle score varies from lender to lender rom 620 680 and higher. Other factors come into play.BRIDGE LOAN:It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically enables you to have a place to live after the closing on the old home. The key to a bridge loan is having a qualified buyer and a signed contract. Usually, the lender issuing the mortgage loan on the new home will write the interim financing as a personal note due at settlement on the property being sold.If, however, there is no buyer for the property you have up for sale, most lenders will place a lien on the property, thereby making that bridge loan a kind of second mortgage.Things to consider: interest rates are high, points are high, and there are costs and fees involved on bridge loans. It may be cheaper to borrow from your 401(K). Actually, any secured loan is acceptable to lenders for the down peymant. So if you have stocks or bonds or an insurance policy, you can borrow against them as well. So basiclly it is this: A bridge loan is financing secured by your current home, a home typically listed for sale. The bridge loan is used to finance the purchase of the second home and is paid off when the first home sells. In addition to other questions, when considering a bridge loan seller/borrowers should ask about interest costs, up-front fees (because bridge loans are short-term financing, it's better to pay a higher interest rate than points for a loan which will generally last just a few weeks or months), and what happens if house #1 takes longer to sell than anticipated.
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