Bridge loan eases the transition for move-up buyer

Mortgage adviser: Brenda Wyatt, All California Mortgage.

Property type: Singlefamily residence in Oakland’s Redwood Heights neighborhood.

Loan type: Jumbo. Purchase price:

$950,000.

Down payment: 20

percent.

Rate: 4.625 percent.

Backstory: My clients were selling their existing home and they wanted to purchase a larger home. A problem arose when their potential buyer had to drop out two weeks into the deal because the lender declined them.

During approval of my clients’ new purchase loan, I stepped in and added a bridge loan to their primary residence, allowing them to use the money as down payment on the new purchase.

Bridge loans are temporary loans that “bridge” the gap between the sales price of a new home and the home buyer’s new mortgage in the event the buyer’s existing home hasn’t yet sold before closing.

With their cash flow freed up, the buyers were able to make upgrades to the new property before moving in, then properly stage their old property upon moving out.