Frequently Asked Questions
What is a bridge loan and how does Properly help me get one?
What is a bridge loan?
If the sale of your existing home closes after the date that your purchase of your new home closes, you may not have the cash on hand that you need to come up with the down payment to close on your new home, since your equity is tied up in your current home. In these cases, homeowners usually get a bridge loan, which is a temporary loan that helps to “bridge” the gap between when your current home is sold and your new home is purchased. A bank will let you use the equity in your current home to pay for the down payment on your new home, even though you haven’t technically unlocked the equity in your sale yet.
Why do I need Properly to get a bridge loan?
Traditionally, to get a bridge loan, you first need to list your home on the market, host buyers for showing, and then finalize the sale with a signed contract from a buyer commiting to purchasing your home.
Properly solves the need to sell your home to secure a bridge loan. Properly’s Sale Assurance acts as a temporary replacement for a traditional sale, allowing you to qualify for a mortgage and bridge loan to buy your next home without needing to sell - or even list - your current home first.
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