I’d like to share on this blog some stories where we have helped individuals, families, and businesses in their short-term financing needs. I think these stories help demonstrate scenarios in which hard money might be the right answer for you as well.
The first thing I’d like to share is how you can use a hard money or private money loan while transitioning from one home to another. Selling a home can be very stressful. One of the most stressful things about selling a home is timing the sale of your existing home while simultaneously purchasing a new home. We have helped many families lighten this stress with a temporary bridge loan using the equity from your existing home to purchase the new home. What this means is we would make a cross-collateralized loan on both the existing and new homes, which allows you to leverage the equity in both homes before you sell the existing home. Then when your existing home sells, you pay off the bridge loan from the proceeds of the sale.
In one particular situation we had a borrower that had an incredible opportunity to purchase a home, however the borrower’s current home was not ready to sell as it needed some repairs and a little TLC. Instead of losing the opportunity for the borrower to purchase his dream home, he was able to borrow against both properties simultaneously, secure the new home, and then pay off the bridge loan when the home was repaired and sold.
Please call Primary Source Lending if you have a similar circumstance. We would love to see if we can help you out.