Bridge Loans...What are they?

So really, what is a bridge loan? A bridge loan is used when a person is buying a home before they sell their current home. It is like a short-term cash-out mortgage on your current home. The cash that you take out gives you the down payment to buy your next home.
Since the loan is short-term - just in effect until you sell your house - the payments are interest only and very affordable.
Why would anyone do this? Shouldn’t they just sell their old house first? In our super competitive Bay Area market, there are very few homes for sale, so naturally well-priced houses and town-homes are selling quickly.
Sellers have good reason to be concerned about putting their home on the market before they find the one they want to buy. If their current house sells too quickly, they will have no place to go and might have to rent or move in with friends or family until they find their next home.
With a bridge loan, that concern is taken care of – sellers can buy their new house now and sell their current home later.
If you happen to be in this situation, or if you know someone who is, the terms are great and the approval is fast.

Видео Bridge Loans...What are they? канала Spiro The Loan Guy