Most homeowners use the equity in their current home as the down payment for their next home. Properties in Baltimore, Owings Mills, and other hot communities in Maryland go fast, and the competition is fierce. One way to make your offer more competitive is to waive the home sale contingency. A bridge loan can eliminate the need to waive the home sale contingency. In a nutshell, a bridge loan known as CMG’s Instant Equity Program gives you instant access to your home’s equity before you sell to buy a new home. It is a simple solution to bridge the gap between selling your current home and purchasing a new home.
At Community Mortgage Group in Owings Mills, our bridge loan program or Instant Equity Loan Program allows homebuyers to purchase a new primary residence using the equity in their current home for the down payment and closing costs making their offer more competitive.
CMG’s Instant Equity program is a type of short-term financing that helps you “bridge” the financial gap between the time it takes to sell your present home and buy a new one.
“We looked at homes for months and made offers on at least five different properties. The other people we were competing with were waiving all the contingencies and had cash for their down payment and closing costs. Our offers were not as good, even though we had a beautiful home to sell in Garrison, MD. We took a little break and started working with the team at Community Mortgage Group, and they told us about the Instant Equity/Bridge Loan program. The next offer we made was accepted!”
-G. Peterson.
How does CMG’s Instant Equity/Bridge Loan work?
CMG’s bridge loan uses your current home as collateral for a type of “second mortgage” for the down payment and closing costs on a new home. A borrower will often pay the loan off quickly once their home sells with no prepayment penalties.
Positives:
- Perfect for a seller’s market. It makes a buyer’s offer more competitive by removing contingencies.
- It may help avoid Private Mortgage Insurance (PMI) by putting down 20% or more for a down payment.
- Quick financing. It can be faster to qualify for an Instant Equity/Bridge Loan. In addition, you already have the application process started when you apply for your first mortgage.
Negatives:
- Rates can sometimes be higher than most conventional loans but keep in mind this is a short-term loan.
- Must meet lender requirements for qualifying.
Working with Community Mortgage Group – Owings Mills branch on an Instant Equity/Bridge Loan is easy because our local underwriting team approves all these loans in-house. Remember that not all lenders offer an Instant Equity/Bridge Loan program. An Instant Equity/Bridge Loan is a value-added service for CMG borrowers Owings Mills designed to make them more competitive in the current market.
Taking advantage of our Instant Equity/Bridge Loan Program may be the best strategy when you want to waive the home sale contingency. Contact our loan officers to determine if an Instant Equity/Bridge Loan is right for you.
