Bridging loan is specially designed for peoples who want move from a property they own to a new property they intended to buy. This loan has many other names such caveat loan, interim loan, gap loan and etc.
This loan is temporary loan 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. The bridge loan is secured to the buyer's existing home. In order to get this loan, borrower must have solid income that sufficient to make payments for current home loan debt and the new home loan.
Some benefit of the loan
1) This loan not required borrower to make payment at earlier few months. Repayment will begin after acquired of the long term financing.
2) Borrower can place his home to the market for sale without restrictions.
3) If the borrower has made a contingent offer to buy and the seller issues a Notice to Perform, the borrower can remove the contingency to sell and still move forward with the purchase.
Although the loan is convenient and can be obtain easier and quicker, but the interest rate of the loan is much higher than other home loans. Spend much times to study and understand the loans, compare the benefits between normal home loans and this loan. Due to some special circumstances, it might be a good solution for certain people.
All bridge loan information can be find easily from internet, just look for search engines, you will get tons of information within seconds.
For more information about various loans, please take a look at Various Loans Guide instead of Bridging Loan
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