Bridge & Private Money Loans
We offer these short-term financing options as a huge strategic advantage to our clients in a highly competitive purchase market.
Competitive Advantages of Bridge Loans in a fast-paced purchase market:
* Beat out other buyers with an offer that has the most favorable terms
* Write a "same as cash" offer with no appraisal, no contingencies, close in as few as 7 days**
* Borrow up to 100% of the purchase price by leveraging equity in new home + current home
* Write an offer that is not contingent on the sale of the existing house
* Avoid the need to qualify for the payment on both the existing mortgage and the new mortgage
**if deposit is at risk, we can close on a super rush. Typical closing timeframe is 15-17 days for bridge loan where at least 1 property is owner occupied.
Financial and Personal Benefits of Bridge + Private Money Financing
* Buy before selling by leveraging equity in departing residence and new property
* Avoid liquidating highly appreciated equities to buy before selling, which can trigger capital gains taxes
* Avoid the stress and uncertainty of living in temporary accommodations for an unknown period, waiting to find a new home
* Save the hassle and expense of moving twice and paying for interim housing + storage
* Borrow 100% of purchase price of new home + funds to prep your current residence for sale
We Specialize In Using Bridge Loans and Private Money Lending
* Purchasing a New Home
* Buying a New Investment Property
* Business Cash Out or Business Startup Expenses
Most bridge loans have a maximum term of 11 months, meant to "bridge" the period between buying a new home and selling your other property. Making a noncontingent offer ("same as cash") is a huge strategic advantage in the Bay Area's competitive market.
How much can I borrow with a Bridge Loan?
* Use 75% of combined value of existing home + new home, minus any existing loans on the existing home. Borrow 100% of new purchase price + fees + money to prep current residence for sale if there is enough equity in existing home.
For instance:
Existing home value: $2,000,000 with a $500,000 mortgage
New home to purchase: $4,000,000
Total value: $6,000,000
Bridge loan potential: $4,500,000 minus $500,000 existing mortgage = $4,000,000 (100% of new purchase price)
* Borrower must have a clear exit strategy in place for repayment of the Bridge Loan or Private Money, either pay off when current home sells, or refinance. Most clients intend to place a mortgage on the new home once purchased. For this reason, we preapprove the borrower for replacement financing at the same time we set up the bridge loan. If you are working with another mortgage professional on your preapproval, we will work with them as a team to secure your bridge financing, then you may refinance with that broker or bank.
If you work for a bank and would like to collaborate with us on your purchase transactions, please call for a consultation. Exception Lending will honor your existing client relationship and advocate for you before, during and after we complete bridge financing for your client's purchase.
Exception Lending is an independent mortgage broker focused ONLY on mortgage and we work in partnership--never competition--with our referral partners.