Financing in Wausau>Question Details

Angela, Home Buyer in Wisconsin

Bridge Loan

Asked by Angela, Wisconsin Mon Dec 27, 2010

I asked a question earlier today, and in one of the answers a bridge loan was suggested. Can someone explain a little more what that is, are there special requirements, etc?

My previous question was here http://www.trulia.com/voices/Financing/Land_Contract_a_good_…

0 votes Share Flag Financing in Wausau

Help the community by answering this question:

Answers

4
Tim Moore’s answer
A bridge loan is a second loan that allows you to buy the home you want while trying to sell your current home. You are basically buying two homes so your credit and incomes vs debt have to be just right. You are bridging the gap between the new home and a single loan on it with the current loan as you try to sell your home. The down side is that if you don't sell your current home you will be making 2 payments on two homes. Often you can structure the bridge loan so that it does not kick in for 60 or 90 days giving you a chance to sell the current home but not loosing out on the new home by not offering a contingent offer that might get refused.

Speak to your loan officer for more details.
2 votes Thank Flag Link Mon Dec 27, 2010
I don't believe banks are no longer offering bridge loans Tim who answered your question 1st provided great detail of that type of loan .

Concern is in today's market IF your 1st home does not sell you then have 2 mortgages once you are required to pay on bridge loan.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Mon Dec 27, 2010
Angela,
It will be good to know if banks are still doing bridge loans in the residential real estate market.
Think of some thing else, my suggestion.
Good Luck
0 votes Thank Flag Link Mon Dec 27, 2010
If you cannot afford both mortgages over a long period of time, you might want to rethink that strategy. Too many people have lost their homes when trying to use a bridge loan.

As always, please seek out a real estate attorney's advice before signing.
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Mon Dec 27, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer