Bridge Loan
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Anonymous
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Two questions follow:
I've just been pre-approved by my lender for a loan to purchase (direct sale) a house from some frineds. That said, I'm in the process of putting my current house on the market and hope it moves fast so I can close in a few weeks if not sooner (crossing fingers!). With that said, and for whatever reason if my hosue doesn't move as fast as I'd like I'm composing a letter of intent to purchase their house. I realize this letter of intent in non-binging, nonetheless I'd appreciate feedback/recommendations on what to include in the letter of intent. I do not want to make the purchase of their house contingent on the sale of my current residence. Other than that, any recommendations that I should include to magnify my seriousness/commitment to purchase their house is appreciated. Also, I've just started to look at possibly getting a bridge loan. Does anyone know or can anyone recommend a good carrier that offers this type of loan? Also, any items to be on the look out for re: bridge loan? Range of interest rates (%) for such a loan? TIA |
Anonymous
| I think that lenders willing to bridge loans are hard to find these days. not much else to add, sorry |
Anonymous
| Aren't you legally supposed to put in the contract that your offer is contingent on sale of your current home? |
Anonymous
| To add it's pretty scummy to put in a letter of intent to your friends and then not let them know it's based on selling your home. |
Anonymous
+1, i think they're pretty much not there anymore... I basically gave myself a bridge loan by using our home equity credit line that was already in place on our old house combined with a 401k loan. Once my old house closed, I paid back the 401k loan instantly and the funds we're out of it for only about 2-3 months. The lender was fine with me pulling money from both of these sources and I was upfront with them about it as well. |
Anonymous
| Is the purchase contingent on the sale of your home? Or can you carry both mortgages if your house doesn't sell? |
Anonymous
| Try Bank of Georgetown. THere's another one on the Hill, too. I looked into it earlier this year in case we needed it; we did not. And it's not a bridge loan per se, but something that functions like one -- they loan to you based on a percentage of the equity that you have in your current home. Closing costs were decent (somewhere in the $1500-3000 range) and it takes a few weeks for the appraisal and approval to come through, so give yourself enough time in your offer if you absolutely need it. |
Anonymous
| 20:01 here -- it's National Capitol Bank. (Their rates were lower than BOG in May, anyway). |
Anonymous
| Eagle Bank does bridge loan. You are looking at prime plus 2% and 1.5 points. |
Anonymous
| They have gone the way of end unicorn |