Bridge loans allow people who want to buy their next home to access a portion of their home equity to use as down payment and/or closing cost. They have been around for quite a while and has been a great tool to help accommodate home purchases. When I was at Mortgage Master, we offered bridge loans to qualified borrowers.
Cash buyer programs are similar to bridge loans as it’s providing a temporary solution for people who want to buy their next home. One big difference with a cash buyer program is that the buyer does not have to have a departing residence. This also means that unlike a bridge loan, the buyer does not have to qualify with a bridge loan payment factoring into their debt-to-income ratios with their new home.
And let’s not forget that sellers most likely prefer a cash offer over one that is subject to financing. Not to mention the cash buyer program can close in less than half the time than a transaction that requires financing.
Want more details? Check out my latest Resource Guide: Bridge Loan vs Cash Buyer Program.
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