If you are selling your home in Florida but also looking to purchase a new one, the timing of both transactions can feel impossible to plan perfectly. If you are relying on the equity in your current home to make a down payment on the new one, it may seem as if your only option is to sell, move out, and find a third location to live while you shop for the new house. But before you resign yourself to months of mayhem, you may consider a bridge loan to streamline the process and reduce stress. In real estate, a bridge loan is intended to be a convenient and fast way to buy your new home without waiting for your old home to sell. This short-term financing (also called a swing or bridging loan) helps homeowners during the transition between properties. A bridge loan is typically more expensive than a traditional mortgage. This is because there is more risk involved for the lender. The bridge lender will loan the buyer the equity they have built in their existing house in order for them to move forward with the purchase of a new home. A common scenario in real estate where a Florida buyer will need to apply for a bridge loan occurs when they need to purchase their new property before their old home has sold. In this case, they will use the equity from their previous home to cover the down payment and closing costs for their new purchase.What is a bridge loan, in simple words?
How does a bridge loan work in Florida?
