Little Known Loan Program
I’d been racking my brain trying to come up with my Lenders Viewpoint article for this month. I didn’t want to write another article about why it’s the absolute best time in years to buy a home because prices are at rock bottom. I didn’t want to write about the fact that rates are lowest ever. For sure I did not want to write about the mortgage interest deductions for a home or the fact that in many areas you can now own a home for cheaper than you can rent one. Another subject I did not want to mention was that there are loan programs that will accommodate someone who has had a recent short sale, bankruptcy and/or foreclosure.
I would like to write briefly about the Bridge Loan. A Bridge Loan takes some equity from a property you are going to sell or are in the process of selling and uses it to buy your next home. These are usually 1 to 2 year loans made with the specific purpose of getting the Buyer the funds they will need to buy their next home.
The values on homes that can be had right now are so good (darn it I’m talking about that again) that Buyers are doing anything they can to buy in this market – right now. They do these loans so that they do not chance missing out on the opportunity to buy before the traditional selling/buying season hits. Taking out that loan then allows them to sell at the more peak season. It’s a win, win, win.
You may have to call around to find a Lender that will do this loan. Hard Money Lenders commonly do this type of loan.
So if you have the situation where you want to buy now but have a property to sell in order to accomplish that, you need a Bridge Loan.
Now here is where I would normally launch into a discussion of why you should buy now: You know, like prices are at rock bottom, rates are lowest ever, the mortgage interest deductions for a home, that owning may be cheaper than renting, or that there are loan programs that will accommodate someone who has had a recent short sale, bankruptcy and/or foreclosure. But you know all this already so I won’t.
Buy Buy for now.
Lynn Tardibuono - One of the Flipper Chicks - is a CA Real Estate Agent with over 24 years of experience in real estate and lending. Her phone number is (707) 523-2099. See website @ www.sunpacmortgage.com.
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