Guide to Bridge Loans for Downsizing on The Main Line helps sellers figure out financing with equity. Are you thinking of downsizing but are unsure how to financially make that transition from your current home to your next? For our downsizing Sellers, this is their biggest concern when they first start talking with us. I specialize in helping downsize out of your current home and into a right-size new home on the Main Line PA.
A lot of Sellers on The Main Line have assets tied up in their current home. They typically either have a very small mortgage or no mortgage at all. If they are looking to buy another home, a lot of times their biggest concern is how to financially manage that transition from their current home to the next. One way to transition would be just the traditional route of getting a mortgage for the new home. However, if you’re retired and on a fixed income, you may not have the down payment in readily available cash or enough monthly income to qualify. Fortunately, there are other financing options available.
So a great option for Sellers with a lot of equity in their current home would be to use a Bridge loan. We’ve always felt that this loan was perfect for certain Sellers. There is very little upfront cost for the loan, but the big advantage is that no payments are due for 6 months. With the bridge, you can access up to 75% of your home’s equity. So let’s say your home is now worth $800,000 and you have a small mortgage of $65,000. We would take 800,000 times 75% which would $600,000 and now minus your mortgage balance of $65K. That leaves you with a maximum bridge loan of $535,000.00. You can now take those funds and purchase a new home or condo without having to sell your current home first.
Overall, it is a pretty easy process from start to finish. It’s not like a typical mortgage application. The lender doesn’t care about your credit score or your income and your ability to pay. The loan is based on your home and the equity in it. It’s a great tool for Sellers who have most of their money tied up in their current home.
Did you find Guide to Bridge Loans for Downsizing on The Main Line helpful? If you would like more detailed information or just have a few questions, send me a message or click here for a downsizing seminar. We can take this next step together, Kimmy Rolph Sells The Main Line and local areas.
