Bridge loans in Massachusetts can save the day for many homebuyers who find themselves in a pinch. Also known as swing loans, this alternative financial instrument gives you options when you need more time between transactions.
In short, a bridge loan allows you to finance a new house before completing the sale of your current house. With this in mind, there are many reasons to consider this option.
When You Should Consider Using a Bridge Loan
If you are in the challenging position of buying and selling, consider these reasons to use a bridge loan to keep things on track.
- A downpayment is not affordable without proceeds from selling your current home.
- Seller of the new house will not accept a contingent offer.
- You want to secure a new house before listing your current house for sale and you are confident it will sell.
- The scheduled closing date for your current house comes after the closing of your new home.
Benefits of Bridge Loans
Using bridge loans in Massachusetts for real estate transactions allows a buyer to use the equity in their existing house immediately. Typically, that money goes towards buying a new house without waiting for the old house to sell.
Another way you might benefit from bridge loans is monthly payments may not be due for a few months. This gives you time to build sufficient cash flow.
Hire the Best in Alternative Real Estate Financing
If you are ready to make an offer on a new house without a sale contingency, come to Harper Financial LLC. They are a successful mortgage loan provider in Massachusetts. Contact them for more information.
