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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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"Theresa sat down with us and helped us clean up our credit, showed us what we couldn't see, and over the course of a year we were able to purchase our first home. Not only was she helpful up front, but Theresa made the entire process painless. Her help and personal attention was priceless. Just recently, when rates were dropping Theresa contacted us and helped us through a refinance. Thanks for helping us with everything! Theresa will be hearing from us soon on our next home purchase!" -- Cory & Bob

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