Question:

What are secured bridge loans?

Answer:

What secured bridge loans are is simply loans secured by some property. Either the property to sell, or the property to buy is used to secure the loan.

Many people would go out and sign for a new home and a new mortgage and then they would find out that their old home wouldn't sell as quickly as they thought it would. At that point, they have signed an agreement and made a down payment and now they cannot sell their house. If they back off, they will lose the down payment and all the costs related with buying a new home - together, this may range from 5 to 20 percent of the house value.

This is when a secured bridge loan kicks in. The bridge loan can be secured on the new or the old property, and the lender will like to know that the buyer has enough money to carry on payments for two mortgages and a bridge loan for a while until the current property sells.

Some lenders say that using secured bridge loans is essentially difficult to cope with for long, as you are paying three loans on two properties.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage