Getting a Bridge Loan in Texas

One of the most stressful parts of selling a home and buying a new one is bridging the financing between the two. Traditionally, most buyers have sold one house and then used the proceeds as the down payment to buy the new home. However, this requires coordinating the timing between the two sales and selling the current home prior to moving out.

Building a Bridge

Fortunately, Capstar Lending is now offering a solution to reduce the stress in this scenario: a true bridge loan. Here’s how it works: we calculate the amount of equity in the existing home and then use that equity to offer up to 100 percent financing on the new home. The new homeowners can then move into the new home and sell their existing home on their terms and schedule.

Home Buying on Your Schedule

The new loan does not have payments — the interest is paid once the existing house is sold, and the new homeowners only make the payments on their existing home until it closes. Once the existing home is sold, we work with the homeowners on a streamline refinance of the bridge loan into the permanent financing of their choice.

Qualifying for a Bridge Loan

The qualification process for the bridge loan is the same as qualifying for a conventional loan program. In fact, I had one family make an offer on a new home with a bridge loan and when they quickly received a good offer on their home, they switched to a conventional loan. In a flipped scenario, I had buyers whose existing home sale fell apart, so we were able to switch to a bridge loan without delaying the closing of their new home.

Want More Info? Let’s Talk

As with all mortgage-related scenarios, specifics and qualifying details are always unique to each property and each buyer. If you think a bridge loan might be useful to you, please don’t hesitate to reach out to me directly for more details on this new home loan program.