A bridge loan essentially helps fund your new home purchase. For example, you might use it to cover closing costs for a new mortgage. … A financing contingency is a contract clause that allows a buyer to get back money put down without penalty in the case the buyer cannot secure financing.
Regarding this, is a bridge loan worth it?
A bridge loan may be a good option for you if you want to purchase a new home before your current home has sold. … Bridge loans also tend to have high interest rates and only last for between six months and a year, so they’re best for borrowers who expect their current home to sell quickly.
That said, you can generally expect lenders to require a credit score that’s considered good or excellent to get approved. Also, you’ll likely need a low debt-to-income ratio to prove your ability to manage two mortgages and a bridge loan for a short period.
In respect to this, what is the shortest mortgage term you can get?
5 years