Cross Collateral Loans: The New Bridge Loan

You may remember the old term, Bridge Loan.  Well, something like this has returned, but it has a new name.  The Cross-Collateral Loan may be the perfect scenario for you when looking to purchase your next home, whether it’s existing or new construction.

The Cross-Collateral Loan allows you to use the equity in your current home to purchase or construct a new home, while only obtaining one loan against the new property and the current property combined.  Once you sell your current home and the principle balance is reduced to a pre-determined amount, your current home is released and your loan for the new property is re-amortized over the remaining term.

This scenario can save you time and help secure a new property without having to negotiate the purchase with a contingency on your current home.  It also give you a little more flexibility when writing an offer on a home, since you won’t have to make it contingent on the sale of your current home.  This is a real bonus in today’s competitive market.

Highlights include:

One loan!  Which secures your new home and your current home.

You may be able to borrow up to 100% of the purchase price of the new home plus closing costs.

Terms available include 30-year and 15-year Fixed Rate Mortgages.  3-year, 5-year, and 7-year Adjustable Rate Mortgages.

For more details and to start your loan application today, don’t hesitate to give me a call at 360-901-3210. 

Lloyd White, Jr., your community lender.