For many home buyers, purchasing a new home means selling your old home. If you find a new home before you sell your existing one, you are going to need a 'bridge loan'.
What are 'bridge loans'?
A 'bridge loan', also known as 's wing loans', minimizes the difference between the purchase of a new home and the sale of your current home. Meaning, if you have not sold your first home, your current home will be used as collateral for covering closing cost fees for your new home purchase.
How does bridge financing work?
Star Loan Services will work with you to develop a 'bridge loan' that satisfies your needs. We can tailor a bridge mortgage that will completely pay off your first home's mortgage at the time of the bridge loan closing. Or, you can choose to combine the debt from your first mortgage with your new home loan.
Below is some information on how bridge mortgage loans
-- The bridge loan is used to pay-off the mortgage from your first home. The money left over, minus closing cost fees and six months prepaid interest, will be used for your down payment on your new home.
-- If, after six months, the old house still is not sold, the borrower will begin making interest-only payments on the loan
-- Typical loan terms for bridge loans are 6 - 12 months.
-- Your bridge loan will be paid off after the sale of your current home. If there are any unearned interest payments, they will be credited to you.
-- Your new home loan must be financed with Star Loan Services if you utilize one of our bridge loan programs.
I have bad credit. Can I apply for a bridge loan?
Yes! Star Loan Services specializes in providing bad credit bridge loans. We can even get you approved for a bridge loan if you have recently experienced bankruptcy!
Category: Personal Finance