Updated: Oct 7, 2022
In today's market, it can prove difficult to "Trade-Up" houses. Often someone's down payment is trapped in the equity they have in their current home. Sell to get it out before you've purchased, and you risk not finding a new home in time, and then what do you do? Try to write an offer on a new home contingent on selling your current home, good luck! The best option can be a Bridge Loan. Often they are difficult to get and expensive; you've got to deal with multiple lenders and applications. UMortgage has just launched our Simple Bridge Loan. One application and deal with one person, me. Below are some of the specifics to help you buy a new house and sell your old one:
-Bridge Loan amounts go up to $250,000. In certain situations, we can exceed this amount.
-Bridge Loan max is 90% CLTV on the departing residence (mortgage on departing residence + Bridge Loan / Value of home). Most HELOCs or Bridge Loans only go up to 75-80%, so this is much more.
-Cost > Cost to do the Bridge Loan is just $500.00. For most HELOCs or Bridge Loans, you're looking at 1% of the loan amount. So our Bridge Loan can be significantly less.
-Term - Up to 6-month loan term for the Bridge Loan. You can extend the time for another six months at an additional cost of $2000.00
-DTI (debt to income) ratio > One of the more critical ratios in getting a mortgage. This is your total monthly debt payments divided by your gross monthly income. For the Bridge Loan and subsequent mortgage on the new house, we allow up to a 50% DTI.
-Appraisal > Our Bridge Loan only requires a desk review, not a full-blown appraisal. This not only cuts costs but saves considerable time.
-Timeframe > It's a 2 to 3-week approval process. I can pre-approve you for it very quickly, and you can start shopping immediately.
-Application > This is the best part, just one application. You don't need to speak to multiple lenders and fill out numerous applications. This is a simple Bridge Loan.
So there is no need to run around to Credit Unions or local banks, pay a 1% fee, pay for a full appraisal and wait two months to get approved. So if you are living in Oregon or moving to Oregon and want to sell, then buy, reach out to me today to get this started! https://www.livinginoregon.net/todd-davidson-mortgage-broker
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