1-877- 292-7350 jhurst@hurstlending.com

Bridge Loans

Loan solutions if you struggle to qualify for a new home.

Home Buying Solutions

Never miss out on the perfect home because you don’t qualify.

What is a Bridge Loan?

Homeowners often find themselves in a precarious position when they’re looking to buy a new house, but haven’t sold their current home. A bridge loan bridges the potential gap between selling one home and buying another. A bridge loan can give homeowners the cash they need to close on their dream house, when they need it.

A bridge loan is provides a financial bridge for a short period of time–typically for six to 12 months. Interest rates are a bit higher than a 15 or 30 year mortgage. Since the loan timeline is so short, the actual amount of interest paid over the course of the loan is relatively small. 

Bridge loans are a tool, and not designed to fit every homebuying scenario. They were created for when a homeowner has not yet sold their current house, but needs funds to close on their new one. Of course, there are other situations where a bridge loan might be useful.

Increased Convenience

Avoid the inconvenience of moving twice. Balancing the timing of closing on a home sale and a home purchase is incredibly difficult. Often, people end up having to pay for short-term housing solutions if their house sells before their new house is ready. Bridge loans allow homeowners to purchase their next home when they want it, and sell on their own timetable.

Get the Funding You Need

By applying equity from your existing home to your new one, you may be able to reduce your new mortgage below the higher-rate “jumbo loan” level.  Or, you may just want to minimize that new mortgage overall and save yourself thousands of interest from less than desirable mortgage terms. When it comes to taking on more debt, the more you can do to apply your payments to the principal as opposed to the accumulated interest the better. Taking a bridge loan now to set yourself up for financial success in the future is an idea worth considering for many. 

A bridge loan can be structured to address a variety of specific needs.  For example, a bridge loan could be designed to pay off the existing mortgage plus an extra amount for the down payment on the new home. Being able to put down a larger down payment can lead to lower monthly expenses and can save the borrower thousands of dollars in interest over the lifetime of the loan. A bridge loan can also be used as a third loan with the sole purpose of using those funds for the down payment on the new property.

In this case, it is important to be aware that in taking out a bridge loan, you will have three loans on your properties at one time; the mortgage for your current home, the bridge loan, and the mortgage on your future home. You probably won’t need to make payments on the bridge loan – that will be paid off in full when your current house sells.  However, you WILL still be responsible for both mortgage payments each month.  As such, before you begin the process of applying for a bridge loan, it is important that you take the time to ensure that you have a high enough credit score and enough cash reserves to cover the payments you agree to. . A good rule of thumb is that you should be able to carry the two mortgages comfortably for 6 months. Ideally, 6 months is an overestimation, but when it comes to loans and finances it’s always a good idea to plan for the worst case scenario.

Bridge loans are a useful financial tool that many homeowners are not aware of. While a bridge loan is not perfect for every situation, it can be a financial godsend when utilized correctly. Homeowners who are in the process, or considering beginning the process, of purchasing a new home should do their research and decide if a bridge loan is right for them. The real estate market is as competitive as ever, and utilizing bridge loans to create more enticing offers for sellers is a proven way of winning bidding wars. Take the first step towards realizing your real estate dreams  and visit www.hurstlending.com to learn more about our bridge loan services. Hurst Lending is a bridge loan lender that is based in Dallas Texas.

How it Works

Complete Your Application

Get approved for both a short-term loan and long-term home loan from us in a single step. Get started now!

Use Our Funds To Buy Your New Home

We provide you a short-term loan to pay cash for your new home.

Move On Your Schedule

Move when it makes sense for you – no interim housing, no storage, no stressful contingencies.

Refinance Your Short Term Loan

We will promptly refinance your into a long term loan as soon as possible, after your closing..

Easy to Qualify

Liberal debt to income ratios that don’t count old house payment against you.

I’ve worked with Jay Hurst on several loans for my homes over the years, for purchases and refinancing - and just completed one that was a long time planning. Jay is extremely knowledgeable and helpful, and was able to help advise me thru a lot of the nuance the options for my recent purchase, and provide a lot of clarity for me.Great guy to have on your side, and great rates!.

Kevin B.

Hurst Lending was very easy to work with and stayed in constant contact with me throughout the loan process so I never had to wonder what the status of the loan was.

Naomi R.

Reviews

Hurst Lending
4.9
Based on 45 reviews
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Bridge Loan Pricing

Low Up Front Costs

  • $495 fee to set up your Short-Term Loan and allocate Funds for your use.
  • We provide you a Proof of Funds Letter that you have funds available to make a Cash Offer.

Pay Cash for New Home

  • Draw against the Short-Term loan to close on your new home.
  • We just charge a simple 1% origination for the amount you draw from the line of credit.
  • The $495 up front fee will be credited toward these closing costs.

Best Rates for Short Term Line of Credit

  • Our Short-Term loans rates start at 6.99%
  • Payments on our Short-Term loan may be deferred for up to 3 months to give you time to sell your old home.
  • Your Short-Term loan must be paid off at the earliest of when your old house sells or within 6 to 10 months.

Solutions

That Help

You

ATTRACT

Your cash offer will gain attention and rise to the top of the other offers.

CLOSE

Close on time – your funds are guaranteed by Hurst Lending.

WIN

Your cash offer removes financial contingencies and is less risk for the seller.

MOVE

Move into your new home on your new schedule.

Frequently Asked Questions

How do I get started?

It’s quick and easy. Get approved for both a short-term loan and long-term home loan from us in a single step.

What if I can't qualify for the old house payment and mortgage on the new house?

We are lending our own funds for your short term line of credit/loan.  We use common sense underwriting criteria that factors in the equity from your old home and use liberal debt to income ratios to enable you to qualify to purchase a new home before your old house sells.

Once I am approved, how do I make a cash offer for my new home?

Use our funds to purchase your new home.  We provide you a short-term line of credit/loan to enable you to pay cash for your new home.  We will provide you and a proof of funds letter showing that we have funds allocated for you use to purchase your new home.

Can you explain the proof of funds letter?

When we send you a proof of funds letter that means you are FULLY underwritten for a line of credit.  This is very similar to a commercial line of credit issued by banks.  These funds are FULLY available for you to use to purchase a property.  The funds are simply waiting for an executed contract, along with an appraisal and clear title to be released to the purchaser.

Is this truly a cash transaction?

It is! The funds are waiting. The proof of funds letter is as good as if the funds are in your bank account.

From the seller’s point of view, is there anything negative about this transaction?

No. The seller will not have to worry about your loan falling out due to DTI, Job History, Buyer Self Employment, or any of the usual reasons a mortgage loan falls through. The short-term loan/line or credit or cash offer also eliminates the need for contingent contracts. This is a cost-free advantage to the Seller.

How long does it take to close this kind of transaction?

As quickly as we can get an appraisal and clear title.  Everything else has been completed and the money is waiting.  The line of credit is secured by the new property being purchased.

When can I move into my new home?
You just make payments on your old home until it sells. Payments on our Short-Term loan may be deferred for up to 3 months to give you time to sell your old home. Deferred Payments are added to the principal balance of your short-term loan. Your Short-Term loan must be paid off at the earliest of when your old house sells or within 1 year.
When can I refinance out of the short term loan?
  • You just make payments on your old home until it sells.  Payments on our Short-Term loan may be deferred for up to 3 months to give you time to sell your old home.  Deferred Payments are added to the principal balance of your short-term loan.
  • Your Short-Term loan must be paid off at the earliest of when your old house sells or within 1 year.
What is the cost of using our By Before You Sell program?
We charge a simple 1% Origination fee when you draw against your short term loan and the approximate cost to refinance you into a long term loan (after you old house sells) is .25% to .5% in extra fees* related to using Hurst Lending to refinance out of the short term loan.
Am I required to use Hurst Lending to refinance out of the short term loan?
We would love to help you refinance out of our short-term line of credit/loan but this is not required. If you use us for your refinance, we will apply a lender credit to your refinance to help keep you closing costs as low as possible.

How Much Does it Cost?

Up Front Costs

  • $495 to set up your Loan
  • Your funds are allocate
  • Proof of Funds Letter provided

Pay Cash For New Home

  • Draw against the Short-Term loan
  • Close on your new home
  • 1% origination fee
  • Initial $495 credited toward costs

Line of Credit Rates

  • Short-Term loans rates start at 6.99%
  • Payments deferred for 3 months
  • Loan is paid off in 6 to 10 months

About Hurst Lending

We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process. Have you ever experienced the frustration of Losing your dream home in a bidding war; Trying to buy before you sell; Had your buyer fallout; or Being on a fixed income and needing your equity to purchase a new home? Our Industry-leading suite of Domination Loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.

Over $1 Billion in Loans Funded

And we're just getting started!

We're Expanding

Offering loans in Alabama, Colorado, Florida, Georgia, Idaho, Iowa, Louisiana, Oklahoma, Oregon, Pennsylvania, Virginia, Texas and Washington.

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