Buy Your Next Home Before You Sell

Bridge Mortgage Loan Information

Types of Bridge Loans

1. Equity Share Agreements

Equity share agreements involve the homeowner receiving funds in exchange for a share of the future appreciation of their home. This type of bridge loan does not require monthly mortgage payments; instead, the lender shares in the profit when the property is eventually sold.

2. Equity Appreciation Agreements

Equity appreciation agreements, similar to equity share agreements, allow homeowners to receive funds based on the future appreciation of their home. However, in this model, the amount owed by the homeowner is tied to the increase in the home’s value, calculated using a home price index.

Benefits of Bridge Loans Using Equity

• Eliminate Home Sale Contingencies: Homeowners can purchase their next property without the contingency of selling their current home first.
• Unlock Home Equity: Provides immediate access to the equity in the current home, which can be used for the down payment on a new property.
• Flexible Repayment Terms: Offers flexibility with deferred payments until the loan matures or the home is sold.
• Increased Purchasing Power: Enables homeowners to act quickly in competitive real estate markets, securing their desired property without delay.

Bridge loans using equity offer a flexible and innovative solution for homeowners looking to transition between properties seamlessly. As with any financial product, understanding the terms and considering the potential risks and benefits is crucial to making an informed decision.