Ever feel stuck between selling your current home and buying your dream home? It’s a tricky situation, but if you know how Bridge Loans work, they can be the perfect solution to your problem. Let me help break it down for you.
What is Bridge Loan?
A bridge loan helps you buy your next home before selling your current one—no contingency attached. This means you can make a strong, competitive offer without waiting around to sell your place first.
Learn more about Bridge Loan, click here.
Here’s how it works: A bridge loan is secured by both your current home and the new one you’re buying. You can often borrow up to the full purchase price of your next house, and the best part? There are no income requirements. Payments are flexible, and there are even deferred payment options to give you peace of mind while you transition.
And the perks don’t stop there. If your current home is in California, you can move anywhere in the U.S. with a maximum loan amount of up to $10 million. Terms typically range from 6 to 12 months, and there are no prepayment penalties.
Example Scenario
Let’s say you’ve found your dream home in San Diego for $1,900,000, but you haven’t sold your current home yet. Your current home in California is valued at $1,400,000, and you still owe $250,000 on it. With a bridge loan, you can use both properties as collateral.
• The total value of both properties is $3,300,000.
• You can borrow up to 65% of this value, which equals $2,145,000.
• After subtracting the $250,000 you owe on your current home, you’re left with $1,895,000 to put toward your new home.
This allows you to make a strong, non-contingent offer on your dream home without waiting to sell your current property.
Why Choose a Bridge Loan?
⁃ Borrow up to 100% of the purchase price of your new home.
⁃ One loan secured by both your current and new properties.
⁃ No income requirements.
⁃ Flexible terms (6-12 months) with no prepayment penalties.
⁃ Move anywhere in the U.S. if your current home is in California.
Source: OriginPoint
So, if you’re eyeing that dream home but worried about timing, a bridge loan could be your ticket to making it happen.
If you think you’d like to explore this option, I can help you connect with my trusted professionals. Call me today, Shirin Rezania Ramos, at 858-345-0685. I’m here to help you with your home buying or selling journey in San Diego.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
