Using a Bridge Loan To Purchase a Property

Are you a homeowner who is interested in selling your current property and buying a different home and curious about using the funds from that sale to buy the new property? In some instances this can cause a certain amount of financial stress because the sale and closing dates do not align. Bridge loans can help provide home financing to borrowers who are unable to access funds that they were anticipating to receive from the sale of their previous home. If you are interested in buying a home in Orchard Park, New York, and want to better understand your financing options, Nickel City Funding, Inc. can help. Read on to learn more about purchasing a property with a bridge loan.

Bridge Loan: Essential Information

nov1Bridge loans are intended to help buyers get financing for a home while they wait to sell the property that they currently own, and are often backed by collateral such as business inventory or another piece of real estate. They allow borrowers to utilize the equity from their existing home to afford the price of the new one; this can include the price of the down payment and closing costs. These loans can help a buyer afford a 20 percent down payment, which is advantageous because a buyer can then avoid private mortgage insurance fees. Bridge loans typically must be paid off in one year, and borrowers usually pay off the bridge loan by using money from the sale of their previously owned home. This type of loan can help give you an advantage over home buyers because funding can go through quickly which allows for an expedited home sale. It is important to note that bridge loans do usually have higher mortgage rates than most other loan types and sometimes, a homeowner that hasn’t fully paid off their original mortgage will be forced to make two mortgage payments until they sell their first home.

Bridge Loan Benefits

There are several benefits to obtaining a bridge loan. In addition to offering the flexibility of buying a home before selling your current one, borrowers are usually able to receive financing within a quick time frame, allowing for immediate funding. Bridge loans can also offer a borrower convenience if they need to relocate quickly and they could give you an advantage when buying because sellers may favor your offer since it isn’t contingent on the sale of another home.

Getting Assistance With a Bridge Loan

If you are interested in buying a home near Orchard Park, New York, and need immediate funding to finalize your purchase, a bridge loan could help provide you with the alternative funding needed. Contact Nickel City Funding, Inc. today to help determine the best financing option for your situation.

Links

Licensing

Registered Mortgage Broker-NY State Dept. of Financial Services. All loans arranged thru 3rd party lenders. NMLS #1586

Equal Housing Lender

Contact Us

Nickel City Funding, Inc.
3460 Seneca St.
West Seneca, NY 14224
Phone: 7165585200

BUSINESS HOURS

M-F: 8:00 am - 4:00 pm
SAT: 9:00 am- 2:00 pm
SUN: closed

SEND US A MESSAGE