When it comes time to finance your new home and you still have a loan on another home you own but plan to sell, you are likely to run into the term bridge financing.  This is a special type of financing that can help solve the cash flow problems created by the need to complete the purchase of one home before you complete the sale of the other. Filling In The Gap It can be difficult to get the sale of your current home to coincide perfectly with the purchase of the new one in order to avoid a problem with cash flow.  If you have a sale closing in 90 days on the old home, but find that you need a short escrow to close the deal on the new home, this can create a gap in cash flow. Bridge financing allows you to close that gap and provides for the time period between the new purchase and the sale that will eventually provide the needed cash for that purchase. Down Payments And More Most people don’t have enough cash on hand to pay the down payment on a new home prior to closing on the sale of the […]
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