Tucson Bridge Loans
What is a Tucson Bridge Loan Anyway?
A Tucson Bridge Loan is used to “bridge” the closings between the purchase of your new Tucson home and the sale of your existing home. A Bridge Loan becomes necessary when you need to purchase the new home prior obtaining the funds from the sale of your current home.
Typically a Tucson Lender will provide bridge financing under either of the following two scenarios:
1. You have a sales contract on both properties clearly showing the gap in closings. The purpose of this requirement is to ensure that you will not being carrying the costs of both houses and the Bridge Loan for an extended period of time thereby creating financial difficulties.
2. You have enough income to qualify for your new loan carrying both the Bridge Loan and the loan on the current home as debts. In this scenario the lender will not care if you ever sell the current home because they will be comfortable that you can afford to carry all the payments in any event.
The advantage of a bridge loan is that it allows you to make a competitive offer on a new home in Tucson without a contingency clause.
The disadvantage of a bridge loan is that it is usually a short-term loan (1 year or less), there are additional closing costs and typically a bridge loan carries higher interest rates than your normal home loan.
Not all Tucson Home Lenders will do these loans but if you need a Bridge Loan in Tucson, we can point you in the right direction. Sometimes a Bridge Loan is the only way to accomplish the purchase of your new Tucson Home in a timely manner that works for your family.
If you have questions about Tucson Bridge Loans, e-mail Brenda or call her Today at 520-918-5968.