Bridge Loans in Colorado: Buy Your Next Home Before Selling Your Current One!
The home you want shouldn't have to wait for the home you have to sell!
What if you could purchase your next home, access the equity you've worked hard to build, and avoid the stress of juggling two mortgage payments?
At 5280 Financial Group, we're helping Colorado homeowners do exactly that with bridge loan solutions designed to make moving easier, more flexible, and financially smarter.
And here's the exciting part: Not all bridge loans are created equal!
First, Let's Answer Six Questions Homeowners Are Asking
- What is a bridge loan?
A bridge loan is short-term financing that allows qualified homeowners to access equity in their current home before selling it. Those funds can help with the down payment and closing costs on their next home.
- Can I buy a new home before selling my current house?
Absolutely! Bridge financing may allow you to purchase your next home without waiting for your existing property to sell.
- Do I have to make two mortgage payments with a bridge loan?
Not with the right program! One of our lending partners offers no required monthly mortgage payments on your existing home during the approved bridge period. Another finances six months of your existing mortgage payments.
- Will my existing mortgage payment count against my debt-to-income ratio?
Under our participating bridge and purchase lending programs, the existing mortgage payment is excluded from the qualifying debt-to-income ratio (DTI) for eligible borrowers purchasing their next home.
- How much equity can I access with a bridge loan?
Our bridge loan programs offer financing up to 75% of your current home's value, including your existing mortgage balance, subject to lender guidelines.
- What happens when my current home sells?
Your existing mortgage, bridge loan, accumulated interest, and applicable payoff charges are paid from the sale proceeds. After real estate commissions and closing expenses, the remaining equity is yours!
Don't Let the Home You Have Hold You Back From the Home You Want!
Picture this.
You've found the perfect home. The neighborhood is exactly where you want to be, the layout checks every box, and you can already imagine yourself sitting on the back patio enjoying your morning coffee.
There's just one problem.
You haven't sold your current home yet!
Most of your down payment funds are tied up in your existing property's equity.
Do you sell first and hope your dream home is still available? Make an offer contingent on selling? Or try qualifying for two mortgages?
Here's something I always tell my clients:
You may have more options than you realize!
That's where a properly structured bridge loan can make a tremendous difference.
How Does a Bridge Loan Work?
Think of a bridge loan as a financial bridge connecting the home you own today with the home you want tomorrow.
Let's say your current home is worth $650,000, and your mortgage balance is $300,000.
You've built approximately $350,000 in equity. That's fantastic!
Our bridge lending partners offer financing up to 75% of your home's value, subject to program guidelines.
Here's how those numbers could look:
- Current home value: $650,000
- 75% financing limit: $487,500
- Existing mortgage balance: $300,000
- Potential additional financing: $187,500
That potentially gives you access to $187,500 before applicable fees, reserves, and adjustments to help purchase your next home!
And here's where our programs become especially exciting.
Two Bridge Loan Options Designed Around YOU!
Option #1: No Monthly Mortgage Payments for Up to 12 Months!
Imagine purchasing your next home without having to make monthly mortgage payments on your existing property during the approved bridge loan period.
That's exactly what our first lending partner offers!
Here's what makes this program attractive:
- No monthly mortgage payments required from the homeowner on the existing property during the approved bridge period.
- Interest accumulates on the outstanding bridge financing at 0.2% daily until repayment.
- Up to 12 months to sell your existing home.
- Financing up to 75% of your home's value, including existing mortgage debt.
- The existing mortgage payment is excluded from the qualifying DTI under the participating purchase lender's program.
- If your property hasn't sold within 12 months, the bridge lender offers a refinancing pathway, subject to its terms and qualification requirements.
The existing mortgage remains in place, and all outstanding obligations must ultimately be satisfied.
Think about that! You can move forward with your next purchase while giving yourself time to sell your existing property without making its monthly mortgage payments during the approved period.
Now that's financial flexibility!
Option #2: Six Months of Your Existing Mortgage Payments Financed!
Our second bridge lending partner takes a different approach, and it's another option I really like!
Instead of suspending the homeowner's payment requirement, this program finances six months of existing mortgage payments directly into the bridge loan.
Let's say your current mortgage payment is $2,500 per month.
Our bridge lender can finance $15,000 to cover six months of those payments.
You use those funds to continue making your existing mortgage payments while your property is on the market.
Additional benefits include:
- Up to 75% of your home's value in combined secured financing.
- Six months of existing mortgage payments funded through the bridge loan.
- Existing mortgage payments excluded from qualifying DTI under the participating purchase lender's program.
- Greater flexibility with your regular monthly cash flow.
Remember, the payment reserve is borrowed money, so it increases your financing balance and must eventually be repaid with applicable interest and fees.
But for qualified homeowners, this can make the transition between properties considerably easier.
Why Is the DTI Advantage Such a Big Deal?
Here's something homeowners often overlook.
Even with excellent credit and substantial home equity, qualifying for another mortgage can become difficult when a lender counts both housing payments.
Imagine your current mortgage is $2,500 monthly, and your new mortgage payment is $3,500.
That's potentially $6,000 in monthly housing obligations before considering other debts!
With our participating lending programs, your existing mortgage payment is excluded from your qualifying DTI on the new home purchase.
That can provide meaningful additional qualifying flexibility.
Of course, borrowers must still satisfy the new mortgage's income, asset, credit, and other underwriting requirements.
What Happens to Your Equity When Your Home Sells?
Here's a question I hear frequently:
Do I lose my remaining equity because I used a bridge loan?
Absolutely not!
When your home sells, the proceeds are used to pay off your existing mortgage, bridge financing, accumulated interest, and applicable payoff charges.
After real estate commissions and closing expenses, you keep the remaining proceeds!
The bridge loan simply allows you to access part of your equity earlier to help make your next move possible.
The 5280 Advantage: We Don't Have to Use the Same Lender for Both Loans!
Here's where I believe 5280 really changes the game.
Many bridge loan providers want both transactions: the bridge loan AND your new purchase mortgage.
NOT US!
Our bridge lending partners focus on the bridge financing, leaving 5280 free to independently shop your permanent purchase mortgage among our available lenders.
Why is that important?
Because your long-term mortgage rate can affect your finances for years!
In certain comparable loan scenarios, we've identified opportunities for purchase mortgage rates approximately 1 to 1.25 percentage points or more lower than alternative bridge-program purchase financing.
While those differences aren't guaranteed, they demonstrate the value of having more options.
And our bridge lender works hand-in-hand with the purchase lender to help coordinate everything.
Two financing solutions. One coordinated strategy. More options for YOU!
Colorado Real Estate Agents: This Could Be Your Next Game Changer!
Agents, how many times have you had a buyer find the perfect home, only to discover they couldn't purchase it until their existing property sold?
Or had a seller hesitate because your buyer needed a home-sale contingency?
A bridge loan could be the solution!
Our programs may help qualified buyers access their equity, manage existing mortgage payments, improve qualifying flexibility, and potentially make stronger purchase offers.
And because we're an independent mortgage broker, we're able to shop their permanent financing rather than locking them into a single bridge provider's purchase mortgage options.
More options for your buyers. More flexibility in your transactions. More opportunities to get clients home!
Let's Build Your Bridge to What's Next!
Buying your next home should be exciting, not stressful.
You've worked hard to build equity. Why not explore whether that equity can help you make your next move?
At 5280 Financial Group, we believe great mortgage advice starts with understanding your goals, exploring your options, and developing a strategy that makes financial sense.
Don't let the home you have hold you back from the home you want!
Whether you're a homeowner planning your next move or a real estate agent helping a client navigate buying before selling, I'd welcome the opportunity to help.
