How To Benefit From Loans From Private Bridge Lenders
Private bridge lenders offer homeowners or real estate investors the opportunity to obtain bridge loans for various reasons. The bridge loan helps people who already own a home to purchase a second home while they wait for the first home to sell. Homeowners get a lot out of this special financial arrangement because it is designed to fill the gap that exists between the sale of the current home and the purchase of the new home. There are many benefits to following this concept.
For one, the equity that exists in the current home can be used as the down payment for the new home, but if the homeowner already has a line of credit or has refinanced in the past, it won’t free up the equity. The cash that comes from the sale of the old home could be utilized for the closing costs that the new home will warrant, but it does not happen in all cases.
In some cases, the homeowner could be eligible for two bank loans according to the lending guidelines of Dodd-Frank, but not everyone qualifies and there could be many restrictions; making the process challenging and frustrating. Therefore, most homeowners opt for the bridge loan from private bridge lenders.
Of course, be mindful that the interest rates may be a little higher in comparison to those offered by traditional banking institutions. However, if you are willing to pay the fees and higher interest rates for a faster process, the bridge loan is your best bet. Speak to one of the best private bridge lenders for more details.