{"id":17949,"date":"2025-07-10T20:08:11","date_gmt":"2025-07-10T20:08:11","guid":{"rendered":"https:\/\/finderica.com\/?p=17949"},"modified":"2025-07-10T20:08:11","modified_gmt":"2025-07-10T20:08:11","slug":"buy-before-you-sell-your-existing-home","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=17949","title":{"rendered":"Buy Before You Sell Your Existing Home"},"content":{"rendered":"
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Are you dreaming of moving into a new home or condo that better fits your lifestyle but don\u2019t know how you can confidently buy a new home while selling the one you\u2019re in?<\/p>\n

\"Bridge<\/p>\n

<\/p>\n

According to Redfin, agents don\u2019t recommend putting in a purchase offer that is contingent on the sale of your current home, as sellers may not choose your offer\u2014especially in a competitive market with higher interest rates.<\/p>\n

At American Pacific Mortgage, we offer flexible home loan programs that help you move with confidence. Our bridge loan<\/strong> programs are designed to help you purchase your next home before your current one sells. These short-term loans give you the freedom to time your sale appropriately, while still presenting a strong, non-contingent offer to sellers.<\/p>\n

How Does a Bridge Loan Work?<\/span><\/h2>\n

Bridge loans are short-term loans<\/strong> that allow you to tap into the equity of your current home\u2014before it is sold\u2014so you can use those funds to buy a new one. This can be a powerful strategy in a fast-moving real estate market, helping you move quickly without juggling the stress of temporary housing or back-to-back closings.<\/p>\n

A bridge loan can:<\/p>\n

– Provide extra time and flexibility in selling your current home.
– Help you act fast to secure your next dream property.
– Strengthen your offer by eliminating the sale contingency.<\/p>\n

Close with Confidence with a Bridge Loan<\/span><\/h2>\n

If you already have a buyer in contract for your current home, this bridge loan option is for you. It allows you to use the equity in your departing property to make a new purchase\u2014without having to wait for the transaction to close.<\/p>\n

Key features:<\/p>\n

– Pending sale of departing residence
– Loan amount up to $750K
– Loan term of three months*
– Minimum credit score of 680
– Combined loan-to-value (CLTV) up to 80%
– DTI not to exceed 50%
– May exclude departing house payment from DTI, depending on sale status<\/p>\n

Debt Inclusive Bridge Loan<\/span><\/h2>\n

This program is ideal for homeowners who have listed their home for sale but don\u2019t yet have a buyer in contract. You can still leverage your home\u2019s equity to buy a new home\u2014but all housing-related debts, including any bridge loan<\/strong> payments, are factored into your debt-to-income<\/strong> ratio.<\/p>\n

Key features:<\/strong><\/p>\n

– Signed listing agreement
– Loan amount up to $750K
– Loan term of four months*
– Minimum credit score of 680
– Loan-to-value up to 70%
– Maximum DTI of 50%
– All housing debts included in the DTI calculation<\/p>\n

There are no monthly payments on a bridge loan. However, an interest-only payment is calculated for purposes of debt-to-income ratio qualifying.<\/p>\n

How Is a Bridge Loan Different from a Home Equity Loan or HELOC?<\/span><\/h2>\n

It\u2019s easy to confuse a bridge loan with other types of equity-based financing like a home equity loan (HeLOAN) or a home equity line of credit (HELOC)\u2014but they\u2019re not the same.<\/p>\n

A home equity loan<\/strong> is a fixed, lump-sum loan based on the equity in your home. It\u2019s typically used for things like renovations or debt consolidation and comes with a longer term loan repayment period and a fixed interest rate.<\/p>\n

A HELOC, on the other hand, is a revolving credit line. You draw funds as needed, pay interest only on what you use, and can access the line during a defined draw period\u2014typically 10 years. HELOCs have variable interest rates, most often tied to the prime rate, but there are some exceptions.<\/p>\n

A bridge loan<\/strong> is a short-term loan that you repay once your current home sells. It\u2019s specifically designed to help you transition from one property to another without missing out on your next home. While the interest rate may be higher, bridge loans are all about timing and flexibility.<\/p>\n

Each product has its own pros and cons, depending on your needs, financial situation, and credit history.<\/p>\n

What to Know Before Applying for a Bridge Loan<\/span><\/h2>\n

Before moving forward with a bridge loan, it\u2019s important to understand a few financial and logistical considerations.<\/p>\n

Credit requirements<\/span><\/h3>\n

Most bridge loans require a minimum credit score of 680. Lenders also review your full credit history to assess payment behavior and risk. If you\u2019re unsure where you stand, an APM Loan Advisor can help you review your credit and help you qualify for a bridge loan.<\/p>\n

Origination fees and costs<\/span><\/h3>\n

Bridge loans typically come with origination fees, appraisal fees, and other closing costs. While these can often be rolled into the loan, they should still be considered when determining your total budget. Because the loan is meant to be short-term, you\u2019ll want to weigh the costs carefully and understand how you\u2019ll repay the loan.<\/p>\n

Pros and cons<\/span><\/h3>\n

Pros:<\/strong><\/p>\n

– Allows you to make a strong, non-contingent offer on a new home.
– Avoids the pressure of selling and buying simultaneously.
– Gives you flexibility and peace of mind in your move.<\/p>\n

Cons:<\/strong><\/p>\n

– May include a higher interest rate compared with traditional loans.
– Short-term nature means quicker repayment is required.
– Can increase your debt load temporarily, which may affect new loan qualifications.<\/p>\n

When Does a Bridge Loan Make Sense?<\/span><\/h2>\n

Here are a few examples of when a bridge loan can be the right fit:<\/p>\n

– You\u2019ve found your dream home and want to move quickly, but your current home hasn\u2019t sold yet.
– You\u2019re relocating for a job and need to secure housing before you can list your existing home.
– You want to avoid making a contingent offer in a competitive housing market.<\/p>\n

In any of these cases, a bridge loan can give you the leverage and confidence to move forward without compromising your goals.<\/p>\n

Explore Your Options with APM<\/span><\/h2>\n

At APM, we understand that every homeowner\u2019s situation is unique. That\u2019s why our team of local Loan Advisors is here to guide you through your choices\u2014whether that\u2019s a bridge loan, HELOC, or home equity loan.<\/p>\n

Our mission is to create experiences that matter. As an employee-owned company, we\u2019re personally invested in helping you reach your homeownership goals with transparency, flexibility, and expert guidance.<\/p>\n

Let\u2019s talk about how we can help you bridge the gap and close with confidence. Click here <\/span>to connect with a local APM Loan Advisor today.<\/p>\n<\/div>\n