Selling your current home while trying to buy a new one in Orlando can feel like a logistical nightmare. You need the equity from your existing property to fund the next purchase, but pulling that off without disruption to your daily life isn’t easy. With homes taking longer to sell, aligning the timing of your sale and next purchase becomes even more challenging. It might feel like your only option is to sell, move into a temporary rental, and house hunt under pressure. A bridge loan could be the tool you need to help everything fall into place — giving you the flexibility to buy your next home without rushing to sell your current one first. In this guide, we’ll break down everything you need to know about getting a bridge loan in Orlando. A bridge loan is a short-term loan that helps you buy a new home before your current one sells. It’s often used by homeowners who need access to their equity to make a down payment or cover closing costs on a new place — without having to wait for the sale of their old home. This type of financing is usually more expensive than a traditional mortgage but can offer valuable flexibility when timing is tight. Bridge loans are also sometimes called: A common situation where you might use a bridge loan in Orlando is when you’ve found your next home, but your current one hasn’t sold yet. Rather than miss out on your new purchase, you can tap into your existing home’s equity to cover the down payment and closing costs for your next property. In many cases, the same lender providing your new mortgage can offer a bridge loan as part of the financing package. They typically require that your current home is already listed for sale and typically limit the bridge loan term to six months or one year. Your debt-to-income ratio (DTI) also comes into play. Lenders may need to factor in your existing mortgage, your new mortgage, and the bridge loan’s interest payments. However, if your current home is under contract and the buyer’s loan has final approval, your lender might only count the new mortgage in your DTI calculation. This helps lenders assess whether you’ll be able to manage both sets of payments if your home doesn’t sell right away. Here are a few ways a bridge loan in Orlando can help make your move smoother: While a bridge loan can give you flexibility and alleviate some stress when it comes to selling your current home and purchasing a new one, there are some drawbacks: A bridge loan isn’t a blanket solution for all real estate transactions, but for some sellers, it can ease the stress of transitioning between an old home and a new one. Some examples of when a bridge loan might be a fitting solution include:What is a bridge loan, in simple words?
How does a bridge loan work in Orlando?
What are the benefits of a bridge loan in Orlando?
What are the drawbacks of a bridge loan?
When is a bridge loan a good solution?
