Buy a new home without selling your current residence and leverage your equity for the down payment.
Our Bridge Loan takes you from a contingent buyer to the equivalent of a cash buyer who can close in as little as 14 days. Don’t get stuck in your current home with no hope to buy a new home in today’s hot housing market. We can help!
With home bridge loan financing from Sammamish Mortgage, you’ll have the following benefits:
Utilize the equity in your home for the down payment on a new home before selling.
Avoid having to put your family in short term housing or live with family while trying to find/close on a new home.
Avoid having your offers rejected by sellers because of a contingency.
Become a cash buyer that can close in 14 days.
Be able to buy a new home without needing to sell your current home first.
Avoid selling your home only to have housing prices skyrocket before you buy a new home.
Not sure exactly what a bridge loan is, how it works, or how Sammamish Mortgage bridge loans are different? Here’s everything you need to know about home bridge loan financing.
What is a Home Bridge Loan?
A home bridge loan allows a move up buyer to purchase a new home without having to sell their current residence until after closing. In real estate terms, this allows you to buy a new home non-contingent on the sale of your current residence.
When you make an offer on a house that you can’t back up without selling your existing home, you usually have to include a contingency clause. This states that you can back out all the way up to closing if your current home doesn’t sell by that date.
What’s Wrong With Contingent Offers?
There’s nothing really “wrong” with contingent offers, from the homebuyer’s point of view. It lets you try and coordinate a home sale and a home purchase so you aren’t stuck in limbo after selling your house, trying to find someplace to live while you purchase a new one. It can also prevent you from closing on a new home and having to manage two mortgages until you can sell your other house.
The real issue is how sellers see your offer in a market as hot as they are right now. When the market is cold and homes are slow to sell with low competitiveness between buyers, a seller might just be glad to have an offer on the table that could come through. However, in a market low on inventory, offers for each available home are usually simultaneous and multiple, and this means sellers look at the ones with the least strings.
An offer with a contingency clause is likely to be passed over quickly, as no seller wants to tie themselves up with a buyer who reserves the right to back out at the last minute based on circumstances out of their control. This means that a contingent offer can kill your chances in a seller’s market.
How Does a Typical Bridge Loan Work?
There are many different types of second mortgages or home equity lines of credit (HELOC) that are marketed as bridge loans. These are tied to your current home equity, and most buyers take them out to access capital for a down payment and closing costs on another home. A HELOC or second mortgage also usually can’t get rid of the necessity for a contingency.
In addition to not being particularly useful for solving the contingent offer problem, interest rates can be staggering for this kind of short term loan. A typical Seattle bridge loan lender will also take both the current and new mortgage into account for qualifying, which can significantly affect your debt-to-income (DTI) ratio and make it hard to qualify for a loan amount big enough to realistically meet your needs.
How Are Sammamish Mortgage Bridge Loans Different?
The Sammamish Mortgage bridge loan is a new short-term first lien on the new home you are purchasing. We are more flexible, and only take the new mortgage into consideration when calculating the debt-to-income ratio. This dramatically increases the reach of our home bridge loan financing as an option for buying a new home while selling your current one.
Once your new purchase closes, Sammamish Mortgage will begin the process of setting up your permanent financing. As soon as your previous property sells, we will finalize a refinance of the bridge loan into a long-term conventional mortgage. This means everything happens seamlessly and you can go from living in your previous home to living in your new one with a minimum of hassle.
Our home bridge loan financing program is currently available for properties located in Seattle as well as the rest of Washington State, Oregon, Colorado, Idaho & California. You can reach our expert team of Seattle bridge loan lenders at 425-401-8787.
Realtors: if you have buyers that are currently stuck making contingent offers, give us a call and we can discuss this option in greater detail.
Very easy, friendly, knowledgeable and communicative. I really enjoyed work with Chris and Jana, they were very thorough and made the process easy. I appreciate that they were very real and I never felt pressured. Everything was laid out so there werent any hidden surprises which I appreciate. Thanks for making it so easy!
September 20, 2023
They were awesome !! Always answered my questions and kept me updated on progress. Both Stacey and Trevor were great!
September 17, 2023
It was a very stressful time in my life. Sammamish Mortgage made the transition smooth!
September 12, 2023
Everyone involved was excellent. Chris Lewis and Barb Kite were so professional and went above and beyond to assist us in closing early. Wonderful hard working people.
September 7, 2023
The experience was exceptional, from beginning to end. All the questions we had were answered promptly and clearly. Working with Ryan Shane made our experience less stressful. I would recommend the mortgage company to my family and friends. Thank you!
Oriana Xin W.
September 7, 2023
Fantastic experience! We found the best rates with Sammamish and the fact that there were no origination fees made this a no-brainer. I only wish I found Sammamish Mortgage sooner!
September 6, 2023
Fantastic experience! We found the best rates with Sammamish and the fact that there were no origination fees made this a no-brainer. Plus, we were able to close early because of how efficiently they worked. I only wish I found Sammamish Mortgage sooner!
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.