Buy Before Sell with a bridge home loan custom tailored for you

A bridge loan is a short-term loan used to “bridge” a financial gap between two major transactions. It’s called a “bridge” because it helps you cross from one financial situation to another, providing temporary funding until a longer-term solution becomes available such as permanent conventional financing and/or sale of your departing residence.

Sifi Lending specializes in a variety of consumer (owner occupied purchase) bridge loan options allowing you to transition seamlessly between homes, giving you a competitive advantage on both the buy and sell side transactions.

By utilizing Buy before Sell loan strategies, sellers can unlock the equity in their current primary residence (and/or other property owned), to be used as down payment and/or closing costs to close on the purchase a new home before selling their existing home.  The new home being purchased can also be collateralized if desired to achieve maximum purchasing power.

Limited inventory in many U.S residential markets have made Buy before Sell bridge loan options a powerful financing tool allowing several competitive advantages including:

• Compete and win over multiple offer buyers by writing a Non-Contingent Offer on your new home with a Quick Close
• Avoid the cost and stress of relocating to a temporary residence while searching for a new home. Move only Once, on Your Own timeframe, and avoid unnecessary storage and labor costs
• Qualify with No Income or Employment Requirements! – Ideal for retired, self -employed, or transitioning to property in Another State. We are one of few lenders offering multi-state cross collateralizations*
• Secure additional funding and time to Make Repairs/Renovations on current home before listing, and/or to improve your new home before moving in
  • No prepayment penalties
  • List, Vacate, and Stage your home for sale After you move into your new home.

Professionally staged, vacant homes sell on average 10% higher than occupied/unstaged homes*

• • Move Out First and avoid the inconvenience and risk associated with multiple showings, open houses, and realtor/buyer traffic. Preserve your Privacy and protect your belongings

Simply put, it is much easier and quicker to sell your home than it is to find and successfully close on the new home of your dreams.  Using a SIFI Lending Consumer bridge loan solution to optimize timing and maximize your sale proceeds while transitioning to a new home putting you in the driver’s seat!

Popular Bridge Options

It is important to recognize that no two homeowner’s goals and financial situations are alike.  Factors such as current equity position, cash on hand, and overall financing qualifications and objectives vary greatly from one borrower to the next.

Sifi Lending specializes in providing a variety of customized bridge solutions to match your unique financing needs.  We are dedicated to structuring the lowest cost and most attractive financing structure that best suits YOUR situation. Some of the most common vehicles used to “bridge” a new home purchase before selling include:

Sifi Private Consumer Bridge loans

Best for homeowners looking to write the most attractive offer with no sale/financing contingency, with a quick closing, to win among other competing offers. Also ideal for sellers/buyers that are retired, self-employed, looking to upsize, downsize, or relocate. These loans do not require income or employment verification and are available on borrower’s existing home, the property being purchased, and can also include other property owned, including 2^nd home/investment homes.  The ability to structure cross collateralization on multiple properties allows borrower to maximize leverage on collective equity, often for $0 down on new property, and can also provide rehab/repair funds for either property. Short term (11 month) loan is paid off when departing residence is sold. Available for sellers/buyers of properties located in different states!*

ProptechOptions

Specialty vehicles where Sifi Lending procures a bona-fide non contingent offer on your departing residence from one of our institutional  Proptech partners.  Having this offer in place then allows you to write a non-contingent purchase offer on a new home, and obtain conventional financing without qualifying for the mortgage payment(s) on the home you are selling (Per FNMA guidelines). You would then have the ability to list and market your property for 120 days to sell at market price and retain all proceeds after sale closes less financing fee, closing costs, and any loan balances. Can be used in conjunction with 2^nd mortgage/HELOC on departing property for down payment.

Non-QM loan options                                                                      

Utilize for purchase on new home. Can be combined with bridge financing on existing home if needed for down payment. Non-QM Income/credit qualifying options are more lenient because a) Borrower can income/credit qualify on only the new purchase loan (departing residence payment not counted for qualifying) and (b) Alternative income documentation options are available compared to conventional loans.   Non QM programs carry higher rates/costs than conventional lender programs.

Traditional HELOCs/2^nd Mortgages

Often the lowest cost of capital to access departing home equity for a new home purchase, these vehicles typically only available to borrowers with stellar credit scores, who meet conventional income and employment guidelines. These programs are generally not available on already listed properties unless put in place prior to home being listed for sale.  Small early termination fees often apply when paid off. Proceeds can be used and/or combined with cash on hand to purchase new home outright, or for large down payment in conjunction with right-sized conventional permanent loan on new home.  Borrower must be able to meet traditional Debt to Income ratios by qualifying for all loans on all properties making this option more difficult to qualify for than other options.

Leveraging of Financial Assets

Pledged Asset/Stock loans – Sifi Lending has programs allowing 90% of pledged assets/stocks to access for down payment.