Don’t Miss the Spring Buying Season – Bridge Loans Are Opening Doors

I have noticed that things are picking up on the purchase side of the market, and buyers are becoming increasingly mobile. It is the spring buying season, and I hope you are not missing out. 

There are so many things I watch when it comes to the spring market and staying on top of what is happening. Lately, we have been getting daily calls about bridge loans and opening escrows with bridge financing, either as the primary plan or as a backup. 

I recently had two listing agents who do a decent amount of business tell me they had never been involved in a bridge loan transaction. Another agent questioned me up and down about how buyers qualify, how we can do a loan with no appraisal in certain cases, and how we can close quickly. 

I am always here to help. 

A bridge loan can make a lot of sense when the perfect house comes up, the buyer wants it, and they have not listed their current home yet. With bridge financing, they may be able to write a non-contingent offer, move quickly, and avoid missing out on the right property. 

Buying a home is often an emotional and time-sensitive decision. When the right house comes up, sometimes you need to strike while the iron is hot and make it happen. 

A transaction may even start as a bridge loan, and if your client sells their current home in time, it may simply become a normal transaction - with the bridge loan hanging in the background as a backup plan. 

So, if you have never been involved in a bridge loan transaction, here is what you may be missing: 

Generally, depending on the situation:

• No appraisal required
• No income documentation needed
• Bank statements are not be necessary
• No pay stubs required
• A credit score does not have to be perfect
• The title needs to be clear
• We typically need 20% equity or more after accounting for the loan
• The bridge loan can potentially be placed on the purchase property, the sale property, or both
• Rates are currently in the 7s
• Fees vary depending on the situation, and we explain everything clearly to our clients from the very beginning

This can be one of the easiest loan options available when structured correctly. 

When your buyer finds the perfect home but has not sold yet, don’t assume they are stuck. Call me. Let’s talk through the options and see whether a bridge loan makes sense. 

I am always here to help you and your clients compete, move quickly, and make the deal happen. 

Interest Rates

Interest rates are on the naughty list today. Something about a war in the Middle East blocking the Strait of Hormuz. Same stuff, different day, and tomorrow we will ease up or double down. Yes, the war is dictating interest rates!   

Loan Programs Snapshot

• Government loans (FHA/VA/USDA): in the 5s
• Conventional (≤ $832,750): high 5’s / low 6s
• High-balance: mid 6s
• Jumbo: Low to Mid6s
• ARMs: 5s - 6s

Additional options:

• Bank statement loans (10% down+)
• P&L loans (20% down, no bank statements)
• 0% down options (620+ score)
• DSCR loans (15% down)
• Bridge loans (~7.99%)
• Buydowns (3/2/1, 2/1, 1/0)

Rates subject to change without notice. 

Condo Update

• Good news: None today
• Bad news: Diamondhead – Stevenson Ranch  –  Fannie doesn't like them right now.  I believe there are some repairs going on due to SB-326.    

We love your Non-Warrantable Condo loans!!

Need help checking a condo? Call me, and we can look it up in real time.
Also: 

Full California "naughty list" available here:

https://mikemeena.com/non-warrantable-condos/

Let's Connect

If you - or your clients, friends, or family - need guidance, I'm here.

📞 661-291-2222 (Direct)

📞 661-714-6258 (Cell)

📞 661-260-2970 ext. 2222 (Office)

📧 Mike@AugustaFinancial.com

Sincerely,