Homeowners who relocate may find that selling an existing property can become a top priority. If you’re relocating for a job, downsizing or going through probate, a bridge or an estate loan could help you get through a potential liquidity crunch.
Payment arrangements made through residential bridge loan lenders often coincide with the sale of your existing home or inherited property. The timing of the loan’s repayment schedule provides the convenience and flexibility to pay it off when your property transaction occurs.
Payment plans that match your closing schedule
Because creditors expect borrowers to come into a large sum of cash when an existing property sells, a bridge loan payment plan will typically follow your closing schedule. This offers a great deal of convenience. When your first property is still on the market trying to attract a buyer or waiting for a closing, you may not otherwise have the money to purchase your next home.
To overcome the funding gap, many residential bridge loan lenders create affordable monthly payment plans that include a larger balloon payment that’s due when the sale of your current property is complete.
Short-term payment options
Bridge loans give you the freedom to purchase a new property when you need to do so without committing to a 15- or 30-year stretch of mortgage payments. If you’re leveraging your current house to fund an urgent move, waiting until after your existing property is sold could result in a lost opportunity. A short-term bridge loan, however, provides you with sufficient funding to afford your new home and also maintain your existing property until it’s sold. You can get the payment flexibility you need to make this work. This gives you the freedom to move on your terms while you fulfill other obligations without a need to commit to large mortgage payments.
Bridge loan payments and inherited properties
Obtaining financing through hard money lenders Los Angeles residents can trust in helps when it’s time to overcome a short-term funding predicament. Acquiring property through an inheritance, for example, may come with unexpected expenses that you may not have been prepared for.
For a variety of reasons, heirs may not want to hang on to an inherited property, especially when its upkeep is too close to its current market value. If you decide it makes more sense to sell an inherited property, a hard money lender’s estate loan may help offload it.
Maintaining a house typically requires structural repairs, property taxes and homeowners’ insurance. Unless the deceased included sufficient financial resources to cover these expenses, your monthly budget may become overwhelmed by the inheritance.
It could be to your benefit to look into residential bridge and estate loan programs that offer short-term funding and payment arrangements to help dispose of an unwanted inherited property. You can then pay off the loan after the property is sold.
Flexible payment scheduling
A bridge loan provides the cash needed to move into a new home without worrying about an existing home’s sale. An estate loan offers relief from an unwanted property so that you can purchase a more suitable home or unload an unwanted inheritance. Both hard money bridge and estate loan programs can provide more affordable and flexible payment schedules than traditional long-term mortgages.