Is a bridge loan right for you?
Bridge loans let homebuyers take out a loan against their current home in order to make the down payment on their new home. A bridge loan may be a good option for you if you want to purchase a new home before your current home has sold.
Benefits of a bridge loan
- 6-month balloon term with interest only monthly payments
- Option to renew for an additional 6 months for a $2,000 fee
- $250,000 maximum loan amount
- 90% maximum combined loan-to-value (CLTV) ratio
- Interest Rate of 4.50% if < 80% CLTV
- Interest Rate of 5.50% if > 80% CLTV
- Borrower is responsible for all associated loan fees and closing costs
- $500 origination fee
Bridge loan terms and eligibility requirements
- Borrower must be working through the Colorado Lending Team to obtain a primary residence purchase loan
- Collateral must be borrower’s current primary residence
- Transunion credit score of 680 or above
- Debt-to-income (DTI) ratio of 50% or less