Rebecca Richardson - Mortgage Consultant
3 Loan Alternatives that can Unlock Your Homebuying Dreams
Most homebuyers may be aware of the different types of mortgage like a conventional, FHA, VA, USDA, and a couple of other types of loans. But if you already own a home, there are a few more options that could benefit you.
Building a Bridge
You want to buy a 🏠 but still have a 🏠 to sell? Let’s say you can qualify for the new mortgage even with your current payment but you want to use the 💵 from your current home as a down payment. What is available for you?
Solution: A bridge loan
With a bridge loan you can: 👉 Borrow up to a combined loan value of 90%
👉 Payments are interest only
👉 The loan can last for up to 12 months
👉 You can borrow up to $250k
If you already own your home but want to make a new home happen and feel stuck, this might be the perfect solution.
And if you are thinking of buying. Give me a follow. I’ll show you how to understand it all and save money along the way.
Cash flow your way to a new house
So, you want to buy an investment property but not sure what kind of loan you want, the tax consequences of renting the home out short or long term or if you could even qualify.
Enter the cashflow loan. Also known as a DSCR (debt service coverage ratio) loan, you qualify based on the property’s cash flow instead of your personal income.
What down payment is needed? You will need at least 20% but also you can close it in the name of your LLC.
Not too late to renovate
You are thinking of buying a new 🏠 but the current interest rate climate has you second guessing yourself. You have decided not to sell because you love the neighborhood but still want some of the things you’d get with the new house – like a larger kitchen, additional space for a home office or a new outdoor living space.
That’s where doing a renovation and a renovation loan can come to the rescue.
Here’s how a renovation loan works:
✅ Decide what improvements you want to make
✅ Choose a general contractor and get a bid for the improvements
✅ Lender will vet the builder
✅ Appraiser will appraise the home as if the work was already done
✅ Max loan amount will be determined based on the appraised value and loan type
✅ As long as that’s enough to pay off your current mortgage and cover the renovation you’re good to go.
Not sure what route to take to get the keys to your dream home? That’s where working with a trusted lender pays off.