One of the biggest impediments for current homeowners to repurchasing another home; I (most often) they haven’t sold their current residence.
Few sellers want to accept contingent offers.
In turn, many move-up homeowners stay stuck in homes that no longer suit their needs until they find a situation that will accept contingent offers.
Agents and MLOs Out
Another factor is that typical “bridge loans” are high-rate and high-fee, and with so many paragraphs of fine print, only “highly motivated” buyers who can pay exorbitant costs apply.
That’s changing!
Currently, I have two wholesalers who underwrite bridge loans to meet Fannie Mae guidelines. They produced funded transactions, deeds of trust, and transactional paper trails.
I feel they’re solid enough to take their loan offerings to my readership.
Here is how it all shakes out.
Loan Limits: $2 Million.
Qualifying: Full Doc and Ez Qual (no stated income)
Min. Fico: 740
Min down: 20%
Sources of down: Cash, HELOC, 401k
Rates: Currently in the high 6s
Term: 30, 15. and 5-year fixed.
Fine Print: None and Pre-Pay Penalties.
Costs: 1-1.5 points with $1300 in underwriting fees.
COE: 21-25 days from the date of application.
Call Me!
I pick up the phone!
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