You may remember the old term, Bridge Loan. Well, something like this has returned, but it has a new name. The Cross-Collateral Loan may be the perfect scenario for you when looking to purchase your next home, whether it’s existing or new construction.
The Cross-Collateral Loan allows you to use the equity in your current home to purchase or construct a new home, while only obtaining one loan against the new property and the current property combined. Once you sell your current home and the principle balance is reduced to a pre-determined amount, your current home is released and your loan for the new property is re-amortized over the remaining term.
This scenario can save you time and help secure a new property without having to negotiate the purchase with a contingency on your current home. It also give you a little more flexibility when writing an offer on a home, since you won’t have to make it contingent on the sale of your current home. This is a real bonus in today’s competitive market.
Highlights include:
One loan! Which secures your new home and your current home.
You may be able to borrow up to 100% of the purchase price of the new home plus closing costs.
Terms available include 30-year and 15-year Fixed Rate Mortgages. 3-year, 5-year, and 7-year Adjustable Rate Mortgages.
For more details and to start your loan application today, don’t hesitate to give me a call at 360-901-3210.
Lloyd White, Jr., your community lender.
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