Bridge financing helps homeowners bridge the gap between the sale of an existing home and the purchase of a new one.
If the property you are purchasing closes before the one you are selling, you may be able to use the equity in your current home for the down payment on your next property and carry the mortgage on the two properties for a specified amount of time.
You must have a firm sale agreement on your existing home and a purchase agreement for your next home.
Interest rates for bridge financing are often higher than current mortgage rates.
If you do not have a mortgage on the property you are selling, and will not have a mortgage on the property you are purchasing, you cannot qualify for bridge financing.
An alternative type of loan, such as a Home Equity Line of Credit (HELOC) may be suitable.
Speak with a mortgage specialist to find out more about your specific situation.
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