American Pacific Mortgage Blog

Bridge Home Loan Programs: Purchase a New Home Before Your Existing Home is Sold.

Written by American Pacific Mortgage | August 3, 2017 at 9:00 PM

Are you dreaming of moving into a new home or condo that better fits your lifestyle, but don’t know how you can confidently buy a new home while you sell the one you’re in?

According to Redfin, agents don’t recommend putting in a purchase offer that is contingent on the sale of your current home, as sellers may not choose your offer.

American Pacific Mortgage has home loan programs that can help you boldly make your next purchase offer. Our bridge loan programs can help you purchase a new home before your existing home is sold, giving you the time and flexibility you need when selling as well as presenting the strongest offer when buying.

What is a Bridge Home Loan Program?

Bridge loans are short term loans that allow you to tap into the equity of your current home, before it is sold, so that you can use the funds to purchase a new home.

A bridge loan can:

  • Give you extra time or flexibility in selling your current home while buying a new one.
  • Help you act quickly to take advantage of bargains in the real estate market or to secure your dream property.
  • Help you close with confidence by presenting the strongest offer, when a seller is unwilling to consider offers with sales contingencies.

American Pacific Mortgage has two types of bridge loan programs that can help you present the most competitive purchase offer.

Close With Confidence Bridge Loan

This loan is for borrowers who already have a buyer in contract for the sale of their existing home, and are ready to make an offer on another home without a sales contingency. Under this home loan program, the borrower can take the equity from the home that is a pending sale and use those funds to purchase a new home.

The departing house payments may be excluded from the debt-to-income calculation for the new purchase, if pending sale requirements are met.

Qualifications:

  • Pending sale of departing residence
  • Loan amount up to $400K
  • Loan term of 3 months
  • Minimum FICO Score of 680
  • Maximum combined-loan-to-value (CLTV) of 80%
  • Maximum debt-to-income ratio (DTI) is not to exceed 50%

Debt Inclusive Bridge Loan

This loan is for borrowers who have a home listed for sale, but not yet in contract. In this program, you can take the equity from your current home to use the funds to purchase another home. However, all the debts for the home being sold, including any payments on the bridge loan (if required) are factored into the borrower’s total debt-to-income ratio when purchasing the new home.

Qualifications:

  • Signed listing agreement of departing residence
  • Loan amount up to $400K
  • Loan term of 4 months
  • Minimum FICO Score of 680
  • Maximum loan-to-value of 70%
  • Maximum debt-to-income ratio is not to exceed 50%
  • Departing house payments and any bridge loan payments are included in DTI calculation

Combine either of the 2 Bridge Loan options with our “Keys On Time” commitment and your borrower can make an offer that cannot be refused!


How do you know which bridge loan to choose? It depends on your situation. Our team of problem solvers are always ready to help you find the right fit and take the pressure off as you navigate through selling and buying a home.