Bridge Loan Lenders and Brokers
Where to Find a Company that Does Real Estate Bridge Loans
A bridge loan, as its name suggests, is a loan used to bridge the way from one mortgage to another. This type of loan is used when there are no other options. One example would be if you were living in a home but had to relocate and buy another home in a hurry. You might have to move into your new home before selling your old one.
In this case, a bridge loan can help you with the down payment and closing costs of the new home. These loans are risky, because what happens if you are unable to sell your old home? You end up with three payments to make each month, that's what. Many homeowners cannot handle the financial load, which makes bridge loans risky for lenders as well.
You can find bridge loan lenders and brokers most anywhere mortgage loans are given. Banks, credit unions and mortgage loan companies often offer bridge loans as well. Another place to look for a bridge loan would be a hard money lender. Getting a bridge loan is much like getting a hard money loan.
Your loan is based more on your real estate profile than your credit rating. In addition, interest rates are high and terms are short. If you play your cards right, a bridge loan can help you successfully transition from one home to another without losing much. Lenders can profit from such a loan as well.
You might discover that your local bank is going to offer bridge loans at the highest rates. Credit unions may also have high rates. When it comes to mortgages and bridge loans, sometimes the best bet is to go to a mortgage lending company.
Because these companies specialize in real estate loans, you might be able to get better rates than what a bank or credit union can give you. The key is to do your homework and shop around for the best rates. You might also want to look for alternatives to the bridge loan to save yourself some money. For example, a home equity loan might be a good alternative to consider.