NEWS FLASH: Mortgage Master now offers Bridge Loans

I’m pleased to announce that Mortgage Master Service Corporation is once again, offering bridge loans to our clients. A bridge loan allows a home owner to tap equity from their current home for down payment on their next home before their current home has sold.  With a bridge loan, there are no monthly mortgage payments and the interest that accrues is paid off at the closing of the buyer’s listed home.

For home owners in the greater Seattle Tacoma area who want to buy a new home, a bridge loan can be a great resource, especially in a hot real estate market. A bridge loan can allow a home owner to buy their next home and use equity of their existing home for down payment before their existing home is sold or closed. This makes it possible for home owners to buy their next home “non-contingent” on the sale/closing of their current residence.

A home buyer considering a bridge loan should discuss this with their Loan Officer and Real Estate Professional.   The buyer will need to be approved factoring in mortgage payments for their current residence, the new home AND the bridge loan (interest only payments, even though no payments may be due on the bridge loan).

A possible down side to a bridge loan is if the home buyer’s property that is listed does not sale right away or if they have a sale that fails for what ever reason.  It is quite possible a buyer could be stuck with two mortgage payments from their former AND the new home.   There is usually a gap of one month before the payment on the new home is due.  However, it also takes time for closing to take place once an offer is made on the buyer’s former property.

Bridge loans are intended to be short term financing (6 months).   If you are considering a bridge loan, you may want to discuss market conditions with your real estate agent and make sure that your listing is “priced to sell” so you’re not in a position to become strapped with two mortgage payments for too long.

If you are selling a home and interested in learning more about our bridge loans, please contact me.  And of course, if you are interested in buying or refinancing a home located anywhere in Washington state, please click here for a no-hassle mortgage quote.