Bridge loans make it easier for homeowners to buy a new primary residence while waiting for the sale of the existing one. It’s possible to use bridge loans for investment properties or a second home, but it can be challenging to find lenders offering this option.
American Loans and Mortgage in Utah go over situations where it makes sense to get a bridge loan.
Contact One Of Our Bridge Loan Experts
Short-Term Needs?
Bridge loans aim to bridge the gap between the sale of a new home and the purchase of a new home. Given the nature of these loans, lenders prioritize speed in processing and funding bridge loans.
Bridge loans are great for situations in which you need a loan quickly. For instance, if you’re buying in a seller’s market and need money right away to make a competitive offer or need to relocate on short notice, bridge loans can provide the funding you need.
Creating Immediate Opportunity
Timing doesn’t always work when you’re shopping for new properties. Your existing home may still require renovations and staging before it’s ready for the market, but you might have already found a property you want. With bridge loans, you can put an offer on the new property right away, even if your money is tied up in the equity of your existing home.
Personal Needs
When you’re not likely to sell your home before you buy a new property, and you don’t have enough money for the new home’s down payment, bridge loans can be a great option. Getting a bridge loan also makes sense when the seller of your new property will not accept a sale contingent on the sale of your old home.
Commercial Needs
For businesses, getting a bridge loan is an option for immediate business needs. Sometimes, businesses have to meet operating expenses while waiting for long-term financing or secure real estate quickly. In some situations, the business may have to take out a bridge loan when there are limited-time offers on business resources and inventory.
You can use bridge loans to help with different financing needs, not just to purchase a new property. Rates and costs vary, but faster access to funds could justify the cost of bridge financing.
If you feel uncomfortable with your loan options in bridge lending, contact American Loans and Mortgages. We can connect you with more lenders to help you access the loans you need —whether it’s a bridge loan or another type of loan.