Arrival Home Loans Bridge loans are used in real estate transactions where there is a timing mismatch between the purchase of a new home and the sale of an existing one. Our Bridge loan product allows borrowers to compete with cash offers and focus on getting into their new home. Once that process is complete, the outgoing home can be properly staged, yielding higher sale prices. The sale proceeds will pay down the Arrival loan and will be refinanced conventionally.

Bridge loans are short-term loans by regulation and Arrival’s is 11 months. Because there are no prepayment penalties allowed, the durations can be several months or even a few weeks. These loans are not intended as long-term financing solutions and are meant to serve as a stop-gap between the purchase of a new property and the sale of an existing one.

Bridge loans require collateral to secure funding, such as the borrower’s existing home, the home being purchased, or even other properties the borrower may own. This cross-collateralization allows Arrival to maximize the borrower’s equity to secure the new home, often for the full purchase price.

Bridge loans come with higher interest rates and fees compared to traditional loans primarily due to their short-term nature but also because of the limited documentation and use of alternative funding sources. The fees are offset by the savings and reduced stress of moving only once, by the higher prices of properly staging a home for sale, and by providing a competitive answer to cash offers. Buyers are often willing to pay a premium price for a home. With bridge loans, that premium is simply in the form of higher fees rather than a higher price.

The borrower is required to make monthly interest-only payments until the loan is repaid.This normally happens through the sale of the current home and subsequent refinancing of any remaining balance.

Arrival Home Loans bridge loan product has specific eligibility criteria and requirements, primarily creditworthiness and the value of the collateral. Unlike a bank loan, however, income and asset documentation are not required in most cases. Financial stability, verifiable equity, and a reasonable way to exit the loan are the keys to an Arrival loan.