Has Anyone Ever done A bridge Loan?

[Stupid Fast]

As some of you know I am trying to buy a new house. I had a contingent contract on a house that Myself and my wife both loved. Someone has made a non-contingent offer on the house and I have til Sunday @ 5:00pm to drop my contigency and execute the contract. The problem is that I have not sold my House yet. My question is has anyone done a bridge loan? How did it work out? Was it costly? I don't know what to do.
Eric

[Stab-n-Steer]

SF,
A bridge loan is a very common solution in your situation. Depending on your credit rating, one should be fairly easy to get. I would imagine you are pre-qualified for the money required to buy your new home. Here in California an offer will not even be considered unless you are pre-qualified. Talk to your lender and they should be able to help you out.
Good luck,
S&S
[ January 11, 2003, 09:13 AM: Message edited by: Stab-n-Steer ]

[liberator222000]

It comes down to cash reserves. If you have cash staying power you should be ok. Take a serious look at your ability to pay all your bills through the estimated payment period and make a few assumptions. What is I lost my job or I got sick 30 days after close? Could I still manage the payments. Most of the time it works out.

[Jordy]

Nope. Never bought a bridge. Can't help you. Good luck though. Is this bridge in Brooklyn by any chance??? :D :D :D

[HighRoller]

Sorry I can't help you.I bought the Brooklyn Bridge some time ago and paid cash so I didn't need a loan.The guy sold it to me for pretty cheap.What a nice guy.

[Stupid Fast]

jordanpaulk:
Nope. Never bought a bridge. Can't help you. Good luck though. Is this bridge in Brooklyn by any chance??? :D :D :D No This one:
http://www.corna.com/our_portfolio/miscellaneous/images/pictures/cscc-pedestrian_bridge-larger.jpg http://www.corna.com/our_portfolio/miscellaneous/images/pictures/cscc-pedestrian_bridge.jpg
[ January 11, 2003, 11:03 AM: Message edited by: Stupid Fast ]

[burbanite]

Stupid Fast,
why not ask your lender about buying the house on a land contract, you could then re-finance it at a later date.
I did this with mine within the last few weeks, 4.25% 3 yr. ARM, can't go above 6.25%. If it looks like the rates are going to shift upwards quickly there is plenty of equity in the house to re-finance again and roll the pre-payment penalty (small) into the loan or pay it out of cash reserves.
The monthly payments on the land contract (aka rent) are tax deductible as it is interest only, it was back dated to May of 2002 when I moved in. I took no money to closing (got $1200 cash back), re- financed the whole asking price (appraised at $70,000 more) and pay $39/month more to own it than to rent it and have the tax benefit.
Everyones situation is different of course but as my girlfriend is a mortgage broker we were able to get the most out of it because of her knowledge.

[Stupid Fast]

I am nevouse about selling my current house. The market in the area is way down. It should pick up in a month or so but I don't want to risk not selling my house. Land contract? I have heard of this but how does it work?
P.S. This place would be perfect for a 25x30 "shed" for my toys. frown

[C-2]

Here's an idea...offer more money (to quash the non-contingent offer) and suggest a lease-option to the seller? Lease the home you want to buy from the seller with six month terms and purchase option at the end of six months (or even 12 if you could get it). That way, if by chance your current home doesn’t sell, you won’t have hell to pay for it. The seller is also protected, assuming they will take the risk of sustaining a market value decrease. Downside is moving your stuff around if the deal falls through. Hard to get the seller on board though, thus the offer of more money.
Real estate is at its prime across the board, analysts say it won’t get any better. Taking on a bridge loan will cost you money, and with the threat of war, I wouldn’t count on anything in the near future until the conflict is over.
Good luck on it,
C2

[NEW 2 RIVER]

no but I have some ocean front property in arizona for sale
:D
j/k
seriously I hope you are able to make things work
I am trying to find a house right now and it is a chore.

[Jetboatguru]

Eric, check your PM's

[burbanite]

Stupid Fast:
Land contract? I have heard of this but how does it work?
P.S. This place would be perfect for a 25x30 "shed" for my toys. :( Well, the easiest way to describe it would be that the seller and you agree (through a contract) for you to buy the house.
You pay them an agreed amount of money per month for a set term (as short as you want - we backdated it to when I started renting) at the end of which you refinance, (this is one of the keys here), the balance of the agreed price.
A little different spin on the rent to own thing in that as the land contract is technically an interest only deal it is fully tax deductible for you and does not incur a tax liability for the owners as it is not rental income.
I know it sounds a little complicated but it took me less than five minutes to do the contract and the re-fi was also a breeze.
For my situation it worked out great and I got into a house with no money down which, following my divorce, looked unlikely for a long time to come.

[Jesse James]

I am a mortgage banker by trade and if the seller is willing to do the land contract it is a good option if you have to have the house. You can go to any title ins. company and ask for a copy of a blank land contract or contract for deed and then fill it in. You can also go to office depot and buy one for $5 it is on a disk and you can alter it as many times as neccesary. Or if you would like to drop me an e-mail I will fax you one :D