A bridge loan is a short-term loan that "bridges" the financial gap between buying a new property and selling an existing one. It allows you to tap into the equity of your current home to finance the down payment or purchase price of your next property. Once your current home sells, you typically use the proceeds to repay the bridge loan.

Bridge loans are ideal for:

• Homeowners Upgrading or Downsizing: Those who want to buy their next home before selling their current one.
• Real Estate Investors: Those purchasing investment properties or flipping houses.
• Buyers Facing Contingent Offers: Those whose offers are contingent upon the sale of their current home.

While requirements vary by lender, common criteria include:

• Significant equity in your current property.
• Good credit history and financial stability.
• Proof of income or assets to demonstrate the ability to repay the loan.
• A clear exit strategy (i.e., a plan to sell your existing property or refinance the bridge loan).

Ameritrust Mortgage offers a variety of bridge loan options, including:

• Standard bridge loans: For primary residences, second homes, and investment properties.
• Interest-only bridge loans: Offering lower initial payments for qualified borrowers.
• Bridge loans for foreign nationals: Available for non-U.S. citizens investing in U.S. real estate.
• Renovation bridge loans: Combine purchase and renovation costs into one loan.

Bridge loans offer several benefits, including:

• Fast Approval & Closing: Get access to funds quickly, often within 7-10 business days.
• Flexible Terms: Loan terms typically range from 6 to 12 months, but can be extended.
• No Prepayment Penalties: Pay off the loan early without extra fees.
• Compete in Hot Markets: Make a non-contingent offer on your dream home.
• Preserve Buying Power: Don't miss out on opportunities while waiting to sell.

Bridge loans typically have slightly higher interest rates than traditional mortgages due to their short-term nature and the perceived higher risk for lenders. Closing costs can also be higher. However, Ameritrust Mortgage offers competitive rates and flexible terms for qualified borrowers.

Bridge loans carry certain risks, including:

• Higher Costs: Due to higher interest rates and fees, bridge loans can be more expensive than traditional mortgages.
• Two Mortgage Payments: If your existing home doesn't sell quickly, you'll be responsible for two mortgage payments.
• Potential for Falling Property Values: If the value of your existing home declines, you may not be able to sell it for the expected price, making it difficult to repay the bridge loan.

Contact Ameritrust Mortgage to discuss your needs and goals. Our experienced loan officers will guide you through the application process and help you choose the right bridge loan program to fit your specific situation. We'll work with you to ensure a smooth and timely transition into your next property.