In a market where every move counts, having competitive loan offerings in your toolkit is key. What’s one Non-QM product that can help? Bridge loans. These loans open doors to new possibilities by allowing borrowers to secure their next property without the pressure of selling their current one first.
This alternative financing option not only enhances your service offerings but also establishes you as a creative problem-solver in the eyes of your clients.
Let’s explore:
- Understanding Bridge Loans
- How Bridge Loans Work
- When To Use Bridge Loans
- LendSure’s Bridge Loan Program, BOOST
- Expand Your Loan Toolkit with BOOST
- And LendSure’s Bridge Loan Calculator
Understanding Bridge Loans
Bridge loans are alternative financing options designed to “bridge the gap” between buying a new property and selling a current one. They offer immediate access to capital needed for a down payment on a new home, reducing the hassle of trying to time the sale and purchase perfectly.
How Bridge Loans Work
Typically, a borrower secures a Bridge loan by using their existing property as collateral, providing the necessary funds for the down payment on a new home. As the old property is sold, the proceeds are then used to pay off the Bridge loan. These loans are usually short-term, lasting about six months to close to a year for most Bridge loan programs. Repayment options can vary, with some allowing you to make only interest payments during the loan period and pay the rest in a lump sum later.
When To Use Bridge Loans
There are plenty of times when Bridge loans are just what your clients need to secure funding. Let’s go over a few:
- Buying Before Selling: This is perhaps the most common use. When a client finds their dream home or investment property but hasn’t sold their current property, a Bridge loan allows them to proceed without contingencies.
- Avoiding Market Timing Stress: In a seller’s market, your client can secure a new home without rushing to sell their old one, giving them a better position in negotiations.
- Renovating Before Sale: If clients want to boost their current home’s value with renovations, a Bridge loan provides the money they need without slowing down their next purchase.
- Bidding Wars: In a competitive market, sellers prefer cash-like offers. A Bridge loan increases your clients’ chance of winning in a bidding war since it allows them to make non-contingent offers.
About LendSure’s BOOST–Next-Level Bridge Loan Program
LendSure’s BOOST (Bridge Option Offering Seamless Transition) is not like other Bridge loan programs. Here’s what sets us apart:
- Deferred Payments: Most traditional Bridge loan programs require borrowers to pay back the first loan immediately. With BOOST, borrowers can defer payments for up to twelve months, giving them room to breathe and plan.
- DTI? No Problem: BOOST refinances existing loans without affecting debt-to-income ratios, simplifying the approval process for new home purchases. BOOST is only available in conjunction with financing on the purchase of a new home
- Time To Enhance Property Value: Allow clients time to improve, repair, and stage their departure homes, so they can sell for the best price possible.
Learn more about BOOST’s program highlights here.
Expand Your Loan Toolkit with LendSure’s BOOST
Adding BOOST to your loan offerings can only help your business. Here’s how:
- Broader Client Base: By offering BOOST, you cater to a wider range of clients, including those who wish to move immediately but can’t wait for their current property to sell.
- Repeat Business and Referrals: Satisfied clients are more likely to return for future financing needs and refer your services to others, expanding your clientele through positive word of mouth.
- Competitive Edge: You’ll differentiate yourself in a crowded market. This unique offering can set you apart from competitors and attract more business.
LendSure’s Bridge Loan Calculator
Ready to determine your clients’ buying power? At LendSure, we offer a Bridge Loan Calculator to determine how much your client can afford. By providing a few details about the departure property and the new home, we can give you a quick answer. Try our Bridge Loan Calculator now!
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
