Huge Surge in NYC Bridge Loans
Bridge loans in NYC have seen a surge in 2018.
In 2007 we all saw the financial crisis and housing collapse where millions of people lost their homes, and it is clear that more are in a positive mood to buy rather then sell, this is a psychological phenomena.
Looking back to 2007 and prior to that, one can see a large number of home buyers obtained bridge loans to give them the money they need to purchase a house, because they had to wait until their current home would sell, with the rough market, that was not an easy task. The consumer lost enjoyment in owning more than a single home at a time, and at the same time, majority of financial institutions (banks) did not care too much on giving out home loans due to the market conditions.
Bridge Loans NYC are now making a huge comeback, as of the date of this post we are seeing an increase amount of hard money and bridge loan requests from around the USA, though the majority coming from New York City and abroad.
Gathered data currently shows a 148 percent increase in volume for bridge loans compared to a year ago. If we look closer at the data, we can see that about 18 percent of purchase loans actually involve in what way or another a bridge loan, this is a huge indicator of where the economy is heading.
The next question would be why? Well, from what we see, what is happening in the housing industry and market is that home sales have increased tremendously and the market is sizzling hot. If you look at middle-class areas, you will notice that buyers do not want to give up on their perfect home dream of owning a house, while, at the same time, sellers will not give a chance to a seller that is not well financed and proven so prior to accepting an offer, since there are so many buyers out there, and the risk of losing a sale is not worth it. On the other hand, where some home owners choose to sell their home prior to purchasing one, and in likely scenario the home sells before a new one is bought, the entire family is forced to rent a home until the transaction completes, not a fun situation to be in, especially with the burden of moving and the costs associated with it.
That is where a bridge loan comes to the rescue and resolves this problem. The bridge loans allows the buyer/borrower to borrow against the actual value of their 1st home, that they are selling. Utilizing this method, they can pay the mortgage off in full on their current house and use the rest of the funds towards the new purchase of the 2nd home. The great news about bridge loans, is that you are not required to start making payments until you sell your 1st home. This allows you to use the equity of your 1st house prior to the sale. Take for example a situation where you would own a home with the value of $550,000 and currently have a mortgage balance of $150,000. If you allowed yourself to get a bridge loan for say $450,000, you would pay off the original loan of $400,000 and still have $50,000 to use towards your down payment on your new house.
It is not easy to find a bridge loans, especially when you need it quick. That is where we come in, with a simple phone call, we can get you approved within 24 hours usually, and get you the funds as quickly as 7 days to help you close/sell. Why? because we are a private lender, and it is our own money we are giving out, our own rules, and no red tape and nonsense rules involved.
Give us a call, let us help you get your hard money or bridge loan, no matter where you are, and if you are from NYC, let us know, we can usually speed up the already quick process.