Bridge the gap with East to West’s and discover financial freedom
Are you in the process of buying a new home while waiting to sell your current one and need access to quick funds to close the deal?
Do you need funds to start another project? or just need access to quick funds?
Bridge financing may be the right choice for you.
What is Bridge financing
Bridge financing, also known as a bridge loan, is a form of temporary financing intended to bridge the gap between closing on your current house and your new home by carrying the mortgage on two properties for a specified amount of time or covering a company’s short-term costs until the moment when regular long-term financing is secured through connecting the company to debt capital through short-term borrowings.
So how does bridge financing work? There are many ways a company can secure bridge financing, and the options will depend on the borrower’s credit profile and history.
Bridge financing for residential purposes, the short-term loans use your current home’s equity to cover some of the costs of your new home, like the down payment allowing you to pursue your new home.
We’ll work with you to get you the financing you need
Areas you may need a bridge loan
Pros and Cons
Financial Flexibility. You may be able to use the home equity in your current home to help purchase your next dream before completely selling your previous home.
Timely Borrowers can get immediate access to cash
Quick Application Process. Generally faster application, underwriting, and funding process than traditional loans
Interest. Although they are short-term, bridge loans have interest rates that are often higher than the interest rate you may be used to paying with your current mortgage.
Borrowing Power. Not an option for everyone because lenders typically require borrowers to have at least 20% home equity
Cost. Borrowers must pay debt service on the bridge loan in addition to their current mortgage. If your sales agreement falls through on your current house, you may have to pay two mortgages until a sale is finalized.
Talk to one of our specialists to find out more about our bridge financing options.