Navigating the home-buying process can be challenging, especially when financing becomes a hurdle. Two loan options that offer flexibility and ease for buyers and investors are Bridge Loans and DSCR (Debt Service Coverage Ratio) Loans.
These specialized loan programs allow homeowners to purchase a new property before selling their existing one and help investors qualify for financing based on rental income rather than personal credit. If you’re looking to move up to your dream home or expand your investment portfolio, tune in to amazing talkshow between Linda Peltz, Clovis realtor and Kyle Poulin below
Bridge Loans: The Key to Home Buying
A Bridge Loan provides temporary financing that enables homebuyers to purchase a new home without selling their current one first. This loan bridges the financial gap, eliminating the need for a sale contingency.
How Bridge Loans Work
- Borrowers use the equity in their existing home as collateral for the loan.
- Funds from the bridge loan can be used as a down payment on a new property.
- The loan is repaid once the existing home sells, typically within 6 to 12 months.
Real-Life Scenario
Imagine a family searching for a new home in a competitive market. They find their perfect house, but their current home hasn’t sold yet. Rather than risking losing their dream home, they use a bridge loan to buy the new house without waiting for their home to sell. Once their old home sells, they repay the bridge loan, making the process seamless and stress-free.
DSCR Loans: A Game-Changer for Real Estate Investors
For real estate investors, securing a traditional mortgage can be difficult due to income verification requirements. DSCR Loans offer a unique solution by focusing on a property’s potential rental income rather than the borrower’s personal income.
How DSCR Loans Work
- Instead of using W-2s or tax returns, lenders assess the property’s rental income potential.
- The required down payment is typically 20-25%, but credit score requirements are more flexible.
- Competitive interest rates make these loans an attractive option for both new and experienced investors.
Why DSCR Loans Matter
An investor looking to buy multiple rental properties can qualify based on expected rental income rather than their personal debt-to-income ratio. This makes it easier to scale an investment portfolio without being held back by traditional lending restrictions.
Bridge Financing Programs
The Bridge Loan Program offers a seamless financing solution for homebuyers who want to purchase a new home before selling their current one. By leveraging the equity in their existing property, buyers can make a non-contingent offer, increasing their chances of securing their dream home in a competitive market.
The program provides Loan-to-Value (LTV) ratios of up to 75%, ensuring flexibility based on home value. Unlike traditional loans, this bridge loan has no monthly payments, requiring only a single balloon payment after 12 months or once the original home is sold. With fast and flexible financing, buyers can access funds quickly, avoiding delays and stress during the transition.
This exclusive program is available only when purchasing a new home, making it an ideal option for those looking to move up without financial roadblocks. If you’re navigating a home sale and purchase simultaneously, Kyle Poulin at Van Patten Mortgage can help you explore whether bridge financing is the right fit for your situation.
Work With Experts, Kyle Poulin & Van Patten Mortgage
Finding the right mortgage solution can make all the difference in a competitive market. Kyle Poulin and the Van Patten Mortgage team specialize in niche loans, offering expert guidance on Bridge Loans, DSCR Loans, and more.
With over 35 years of experience, they have the tools and knowledge to secure the best financing for your needs. Don’t let financing delays hold you back—contact Kyle Poulin today and take the next step toward your dream home or investment success!
Kyle Poulin
Cell (925)818-1092
Office (916)290-4118
Linda Peltz Realtor
DRE# 01997670 | eXp Realty of California, Inc
559-353-4556
lwpproperty@gmail.com
