The 0% Interest Rate Bridge Loan

Are you looking to move up, or move down but your downpayment is tied to the equity in your current home? Bridge Loans are a big deal right now with inventory being so tight. 

What is a bridge loan?

Purchase Bridge Loans: are used when a borrower wants to purchase a new property before selling their existing property. The loan provides temporary financing to cover the purchase until the sale of the current property is finalized. Once the sale is complete, the borrower can pay off the bridge loan.

At Fresh Home Loan we aren’t a bank, we are independent mortgage brokers that work for you, the people, and we have quite a few options for bridge loans including this really cool 0% interest true bridge loan.

How does it work?

Well as we get you pre-approved to purchase your new home, we fill out a few parameters from the bridge loan to see how much money we can take out of your current home. You can borrow up to 80% of the value of your home and the interest rate for the loan is 0%.  This means when you are in escrow, purchasing your new home, this loan won’t affect your debt-to-income ratio.  

So, let’s just use an example of a house worth 1M. and lets say you have a first mortgage of 500,000.  This would free up $300,000 in cash to use as a down payment in towards your new home. 

Then once we close escrow on your new house, you have 90 days to sell the existing residence. With inventory being so tight in California, that is plenty of time to sell you house at a maximum value.

Keep in mind, you won’t be living there, so you can stage the property and really have it at its peak marketing value without the stress of selling first and renting, or moving twice etc. 

Then once your house sells our investor will take 2.4% of the purchase price as a fee for the bridge loan.  Now that might seem pretty hefty, and I don’t necessarily disagree with that, but there are several huge benefits here, and I will say the first one is a

1 – Lack of Stress – When using your equity as a down payment 

2 – Fast Funds! The down payment of your new home will be there 5 days before closing.   

3 – 0% Interest Rate!  This loan does not affect you qualifying for the purchase of your new home.

4 – Time! This loan allows you time to stage the departing home and get maximum value as you unpack in your new home!

Now I am sure you may have a lot of questions so feel free to give us a call, send us a message, and we will be happy to answer them.

For more information you can visit:

I am Garrick Werdmuller, President, and CEO of Fresh Home Loan, “Independent Mortgage Brokers that Work for the People” and we are here to help you.

All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104 

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Garrick Werdmuller
(510) 282-5456