How to Buy Your Next Orlando Home Before Selling Your Current One
A look at how bridge financing works for move-up buyers in a competitive Orlando resale market.
By Ryan Kennedy, NMLS #1434300 · Orlando Mortgage Broker, Icon Mortgage Group
A look at how bridge financing works for move-up buyers in a competitive Orlando resale market.
By Ryan Kennedy, NMLS #1434300 · Orlando Mortgage Broker, Icon Mortgage Group
One of the hardest parts of moving up in Orlando's housing market is timing: sell first and risk having nowhere to live, or buy first and risk carrying two mortgages. A bridge loan is designed to solve exactly that problem.
A bridge loan is short-term financing secured against the equity in your current home, used to fund the down payment or purchase of your next home before your existing home sells. Once your current home closes, the bridge loan is typically paid off from the sale proceeds.
A contingent offer — one that depends on your current home selling first — can lose out to a buyer who can close without contingencies. A bridge loan lets you make a stronger, non-contingent offer without having to sell first and find temporary housing in between.
Requirements vary by lender, but most bridge loan programs want your current home at least ready to list, if not already on the market, along with enough equity to support the bridge amount.
It depends on how much equity you have, how confident you are in your current home's timeline to sell, and how competitive the specific move-up purchase is. It's worth running the numbers before you assume you have to sell first.