Bridge Loans
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Bridge Loans
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Re: Bridge Loans
#2[deleted]
Re: Bridge Loans
#3Sometimes a tunnel loan is faster.
Re: Bridge Loans
#4Oh, I remember when these were popular for dot-com who just needed to get to the next round.
Many did not. And a loan has baggage that equity doesn't.
Edit: Bridge loans were also really popular to stretch home buying power in 2006,2007. Hmmm.
Re: Bridge Loans
#5Sometimes a tunnel loan is faster.
Maybe you could explain what that is?
Re: Bridge Loans
#6Payday loans of the startup world
Re: Bridge Loans
#7Re: Bridge Loans
#8Oh, I remember when these were popular for dot-com who just needed to get to the next round. Many did not. And a loan has baggage that equity doesn't. Edit: Bridge loans were also really popular to stretch home buying power in 2006,2007. Hmmm.
I think the most common usage in personal home buying is to get from closing of your new home to the closing of your existing home.
Usually you want to close on your purchase of a new home a bit earlier then you close on the sale your existing home so that you (1) Have a place to live (2) can do a single move instead of a double move.
The down side is that you can't transfer the equity of your current home to your new home. Bridge loans get you over this gap with small risk so the price isn't to much. You basically get a separate loan for your current house's equity that is paid off at closing.
The issue would be if the sale of you current home fell through for some reason, hence the issues in 2008 when there were so many unsold homes on the market.
Re: Bridge Loans
#9Oh, I remember when these were popular for dot-com who just needed to get to the next round. Many did not. And a loan has baggage that equity doesn't. Edit: Bridge loans were also really popular to stretch home buying power in 2006,2007. Hmmm.
I think the most common usage in personal home buying is to get from closing of your new home to the closing of your existing home. Usually you want to close on your purchase of a new home a bit earlier then you close on the sale your existing home so that you (1) Have a place to live (2) can do a single move instead of a double move. The down side is that you can't transfer the equity of your current home to your ne…
I should have been more clear. The housing bridge loans I'm talking about were for first mortgage, on SISA, and pushed by LOs. They really stretch the borrower.
The case you describe also happens, I'm just talking about a different case.
Re: Bridge Loans
#10Before building a bridge make sure you can see the other side of the river is there
Building on a hunch won't cut it