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Cross Collateral Bridge Loans

Cross Collateral Bridge Loans

home-loans-svcsBridge the gap between selling your current home and purchasing your new one…

Across collateral bridge loan is short term interim financing on a purchase money transaction. The bridge loan essentially “bridges the gap” between the time their old property is sold, and new property is purchased. When a seller won’t accept the buyer’s contingency, a bridge loan might be the next best way to finance the new home.

Cross collateral bridge loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. Cross collateral bridge loans typically have a higher interest rate, points and other costs that are amortized over a shorter period, and various fees. The lender also may require cross-collateralization and a lower loan-to-value ratio.

Many purchase contracts have contingencies which allow the buyer to only agree to the terms if certain actions occur. For example, a buyer may not have to go through the purchase of the new home they are in contract for unless they sell their old home first. This gives the buyer protection in the case that no one buys their home, or if nobody is willing to buy the property at the terms they desire.

Cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan.

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Call Theresa Springer (MLO #70667/NMLS #70667) today at 360-798-4161 to see the difference that working with an experienced home loan professional can make for you.

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"Working with Theresa is like finding the key to a dream home. She educated and walked us through every step of our remodel. Without her we would have sold our house and missed out on the beautiful home it is today. Thanks Theresa!" -- Amy & Paul W.

Testimonials appearing on this site are individual experiences from those who have worked with Theresa Springer. They are individual results and results may vary.