Bridge Loan Success Story

How do I buy before I sell?

A recent client was going through a tough divorce and was looking to buy a new house, but we had a few challenges that made things a little more difficult.

The divorce had multiple properties to reconcile and until everything sold and the money was split as per the divorce decree we would not have been able to qualify for a new house payment.  

In addition, trying to bid on a new home with any sales contingencies was almost out of the question.  Sellers were not interested in possibly having to wait for the existing house to sell, so getting under contract would be a struggle?  To add another layer, trying to list the current house while still living there was just not going to work with kids and multiple pets we needed a better game plan..

Benefits of a bridge loan?

 A bridge loan is a short term loan that uses the equity from the current home to use as down payment to buy a new home,before they sell. 

• Tap into equity
• Cash for down payment, repairs, closing costs, moving costs
• Sell with no contingencies
• No payments until the house sells

I jumped into Coach mode and explained how we could do a bridge loan on the current home, paying off the existing mortgage with a new loan that would give her the equity for down payment on a new house, and not have a payment until the old house sold.

We were then able to go out and find a perfect house and went under contract with no contingencies on the current residence.  

We did a conventional loan with 20% down using the money from the bridge loan closed without a hitch. 

My client was able to move out of the old house, get it ready for showings and had that house sold in less than two months.

We were able to plan and execute a great game plan, if you have any questions about bridge loans, or how to navigate mortgage financing in divorce, give me a call, our private bridge financing is a game changer and I am a certified divorce lender!