No, we’re not talking about buying the Golden Gate Bridge.
If you’re an active participant in Portland real estate, you likely already know what a bridge loan is — but new buyers often come across the term and wonder precisely what a bridge loan consists of. The short answer is that bridge loans are temporary loans that “bridge” the gap between the sales price of a new home and a home buyer’s new mortgage in the event the buyer’s home has not yet sold. Bridge loans are also often used in development deals where houses are renovated and updated before reselling.
Typically, a home equity loan is less expensive, but bridge loans can feature far more benefits for certain borrowers. Several lenders do not have set guidelines for FICO minimums nor do they have debt-to-income ratios. Short-term funding provided by bridge loans is often guided by a “whatever makes the most sense” underwriting approach. Guidelines may be necessary to long-term financing obtained for a new home, but bridge loans skirt this by operating on a short-term basis by definition.
Stonebridge Mortgage Group can help you with your Reverse Mortgage, Real Estate Loan, and many other mortgage solutions. We serve the greater Portland area and are located in Gresham, Oregon. Call us today at 503.661.5580