One of the specialty products we offer at Grandview Lending are bridge loans. This is a type of short-term financing you can use in situations where you want to buy one house while you are still selling another.

There are a lot of myths and misconceptions about bridge loans, however, which can stop some people from even realizing that this convenient financing solution is available to them. Let’s go over a few of those now.

1. Bridge loans don’t exist. A lot of people actually think that bridge loans themselves are a myth—that they literally do not exist. As such, they do not even try very hard to find them. This is understandable. The majority of lenders and brokers do not offer bridge loans. But that does not mean that bridge loans are not real. Bridge loans definitely exist; we regularly connect people with them throughout the state of Indiana. They just require specialized expertise that a lot of companies simply do not have.
2. Bridge loans are challenging to qualify for. Another common myth about bridge loans is the belief that qualifying for them is hard. You might even be under the impression that you require a perfect credit score to do so. But this is not true. You do need to have a healthy credit score, but it does not have to be flawless. You also will need to meet a collateral requirement. Usually, that is the equity in the home you still own. Before you assume you do not qualify, it is well worth taking the time to find out. We can help you quickly and easily assess your eligibility.
3. Bridge loans are expensive. Another misconception about bridge loans concerns their costs. Many people believe that they have high interest rates and fees, including prepayment penalties. But bridge loans do not have to be expensive. If you have strong qualifications when you apply, then you can qualify for competitive interest rates. Not all bridge loans have prepayment penalties or excessive fees either.
4. Bridge loans are a last resort. Many people are under the impression that you should only apply for a bridge loan if you have no other option. But that is because they have bought into some of the other myths we just went over. If you believed that bridge loans really were super hard to qualify for and expensive, then of course you would treat them as a last resort. But now that you know that is not the case, you have no reason to consider bridge loans a last resort. Instead, you can treat them as what they are: a specialized loan product that can be the right fit in terms of your convenience and your finances when you are buying one home before selling another.

Apply for a Bridge Loan in Indiana

We can help you find out if you qualify for a bridge loan anywhere in Indiana. To get started, please call (317) 255-0062 to schedule your consultation.