What Are Bridge Loans?
Bridge loans are temporary loans 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. The funds from the bridge loan are then used as a down payment on the move-up home. If you are a First-Time Home Buyer, clearly you don’t own a home! The secured $8,000 provided by the Government allows lending institutions to permit you to borrow against it, as a down payment toward the purchase of your new home. · Set FHA mortgages as a PERSONAL LOAN. Lenders may set up personal loans for buyers to use to cover closing costs or to BUY DOWN INTEREST RATES. Buyers must have their initial investment of 3.5 % of the purchase price as down payment. The money could be gifted from a family member, employer or a non-profit organization. What Is Interest Rate Buy-down? Generally, it means pre-paying a certain amount of money, allowing your mortgage payments to be lowe
