A consumer bridge loan:
- helps move equity from one property to another;
- has no debt-to-income qualifications;
- has no prepayment penalty;
- has no appraisal requirements (underwriter discretion);
- has interest-only payments;
- has a primary residence purchase component to it;
- can be used to finance up to 100% of the purchase price of the new home; (if existing equity is sufficient)
- has an exit strategy;
- can be used with a current primary residence, second home, or investment property.
The goal of a consumer bridge loan is to get sellers or buyers out of their current home and into a new home, fast. Bridge loans are designed to be paid off quickly with a maximum term of 11 months. On average, consumer bridge loans are paid off within 6 months or less. Mortgage professionals and real estate agents may attract clients with a message that you can help them in ways other mortgage professionals and real estate agents are not trained to do. We are educating mortgage and real estate peers so you may explain this product as a solution when the problem arises.