Bridge Financing:

• Is a BRIDGE of the equity on their current home.
• Must have a firm sale on their existing residence.
• Can finance to a maximum (depending on lender) of 95% of sale price less existing financing.

Cost Is:

• Prime plus 2% - 5% - accruing per day.
• Plus a set up fee - minimum $250.00.
• No monthly payment usually required unless it runs longer than 60 days - total owing taken from closing proceeds.

Interim Financing - Creative Financing:

• If there is no sale.
• Availability depends on financing on current residence.
• Can only finance up to 75% on principal residence: open mortgage or secured line of credit.
• Probably have to increase mortgage on purchase, or put a secured line of credit behind the mortgage.
• Cost can be expensive - higher rates and fees.