Prime Rate = 2.25%* 

Bridge Financing 101

For clients looking at purchasing a new home before selling their existing home, “Bridge” financing is often requested.  But there are strict rules surrounding this type of financing that purchasers need to be aware of.

Bridge financing allows the client to borrow the amount of down payment from the lender before they sell their current home (normally the down payment comes out of the sale proceeds of their existing home).

The rule is simple & standard at most lenders:  The existing home must have a FIRM & BINDING sale agreement on it before the lender can offer a bridge loan.   The closing dates on the purchase & sale don’t have to match up and your purchase can complete before the sale of your existing home does.

For more information about your personal situation, please contact our office and we’ll be more than happy to assist you.