Are You Buying a Home but Need To Bridge the Financing Gap Until the Old Home Sells?

Written by Posted On Monday, 02 August 2021 00:00

Ralph Waldo Emerson-“The desire of gold is not for gold. It is for the means of freedom and benefit.”

Samir and Sabba had finally found a home that would give them some rest from the busy city and the noise.  They had been visiting with a builder who called them to let them know that he had a ready-made house that had everything on their wish list.   The first buyer was supposed to close in the next two and a half weeks but had backed out due to a family emergency. So if Samir and Sabba wanted the house, they would need to buy it right away, or the builder would have to take the next offer. 

How could Samir and Sabba close in two and a half weeks on the new home if they could not sell the old one yet? They would need to use a large amount of equity from the sale of the old house to put down enough on the new home to afford the new payment.   The answer for the Sader’s was getting an equity line of credit on their old house to use for a down payment on the new home.  The Sader’s story is one example of interim financing to bridge the gap until the old house sells.

Low Inventory-High Demand Causes Interim Financing To Be More Popular  

We are experiencing a record low number of homes for sale.  At the same time, low mortgage rates and rising rental rates are driving people into the homebuying market. It is normal to walk into multiple home purchase offers on the same house. The bridge loan and other interim financing tools are wildly popular because they allow the buyer to make a home purchase offer without having to make the offer contingent on the sale of their current home. 

Advantages of Using Bridge Type Financing

1. Your peace of mind knowing you aren’t forced to sell your current home before buying your new one.
2. Your offer is more competitive if you are not making the home purchase offer contingent on the sale of your old home.
3. Your comfort level on the financing on the new home is better since you used interim loan secured on the old house, giving you  proceeds to put a substantial down payment on the new home.  The large down payment on purchasing the new home lowers the permanent mortgage and the permanent house payment. You have your loan terms where you want it.  When you sell the old house, you pay off any mortgages and the interim loan that was secured on the old house. 

Disadvantage of Using Bridge Type Financing

The borrower is required to qualify with the lenders for all of the loans on the current home and the new home. 

The borrower is required to make the payments on all mortgages secured on the two homes.  

As a real estate professional, connect with other realtors and lenders to get familiar with the various types of interim bridge loan types that can help get your home buyer and home seller closed quickly and smoothly.

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Jo Garner

“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals.”

As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want.  What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?

Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”

Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.

Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.  

Jo Garner has been in the real estate/financing business for over 25 years.  She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge

On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate.  In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 25 years.  Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.  

In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on

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