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No I encourage sellers to use a HELOC to buy then sell if this is the route they choose to go. It is definitely not as scary and it is an interest only loan that can be paid off at closing.
There has been some mention, but we have yet to have a client use one.
John McCormack, CRS
I have not seen it.
No I have not.
I have not seen this but my market is atypical.
I think, they never went away. I just had a Cross-Collateralized Mortgage loan with properties in different counties.
I've had a few requests over the last few months. There are lenders out there who still do bridge loans. I'm not one of them. The upside to the bridge loan is that most lenders don't allow a refinance type loan if the property is on the market. The downside is the cost to do a bridge loan can be upwards of $5000 or more. Most bridge loan lenders will be private money, hard money or conventional money with a hefty fee if not sold within 6 months. With loan programs available at 5% down, this product is mostly used on Super Jumbo loans.
Have not seen any.
Sally and David, our problem is lack of inventory.
Sally K. & David L. Hanson most of my seller/buyer do not go ahead with the purchase before selling the home - or they just coincide the two.
So, I have not come across this - however, it may be happening in our market.
Have not seen it used in this way but for investors this has been a popular financing tool all along.
If the buyer is strong I have seen banks willing to extend this type of financing. I still see a reluctance on the part of the buyers to leverage that far but some are doing it and taking the chance.
Funny you post this question. I just had a listing agent suggest one to my buyers who have a home sale contingency.
Great questions, our team has not seen an uptick in Bridge Loans in the Dallas/Ft. Worth, Texas market. However, this is a good tool to use depending on the circumstances of a seller desiring to move into a new home, before their current home sells.
I haven't seen them myself yet, down here.
I never recommended them, still don't. Won't write an offer where that's what buyer is doing to buy.
we have NOT seen that....but that would be a welcomed addition!!
No. I am not. I don't see a need for them in my market. Who knows, that may change.
I haven't had a client use one in a while. But you are right that you can't go into a bidding war with a sale of house, or even settlement of house, contingecny.
This is a good question but I am not up to date on the use of bridge loans in our market.
Not a big return
In Erie, yes, but it depends on strength of buyers.
We have not dealt with one in a long time.
Sally & David,
I haven’t had a client who needed one in some time. Good to hear they are back.
Yes. Just had a seller take one out so they could sell, close on another, move out and then put their home on the market. They did it so they didn't have to touch their assets which are considerable.
I havent but wish i would. It is a great tool to allow people to move on or move up
I didn't think these weren't available anymore...
Heck no. I don't even think they offer them any more in the old style they once did. I know that many lenders pulled any sellers availablility to their equity loans many years ago - I was one of them.
My area is not back to normal yet really.
No, but in my current area most people are cash buyers!
I just spoke with an agent who indicated her sellers had gotten a bridge loan until their home sells. But I never heard much about them even previous to the market downturn. I don't think lenders liked these very much ever.