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Bridge Loans
Buy Before You Sell – Buy, Move, Then Sell!
Use funds from the equity of your current house toward the purchase of the new home, without selling first
Buy Before You Sell Bridge Loan Qualification Guidelines
- Buy Before Your Sell Bridge Loan Approval Process:
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- If property is more than 5 years old, a conditional approval is needed (if property is less than 5 years old, move directly to full approval process):
- Conditional Approval (1 business day):
- Loan Officer Questionnaire
- Realtor Property Questionnaire
- Lising Price
- Listing price, expected sales price, days on market
- 10 photos or use listing photos (if no photos, get range of equity unlock instead of exact figure)
- Information on square footage, rooms, bathrooms, HOA, etc.
- Agent commissions
- Full approval (1-4 business days):
- Loan application
- Most recent mortgage statement
- Current HOI
- Lender pre-approval
- Credit Report
- Signed Borrowers Authorization
- Inspection (use third party, can take time) with no pre-paid cost to the homeowner
- Receive a Buy Before You Sell Program Agreement, contingency-free offer on departing residence that establishes the:
- The Equity Unlock Amount, which is the equity amount from the current residence that can be used towards their new home purchase
- The Loan Payoff Value, which is the total amount of outstanding loans, including the Equity Unlock  This is the net amount that the Lender will pay if needing to purchase your home at 90 days
- Program Fee the greater of 2.40% of the sales price of the current house/departing residence or $9,000
- Conditional Approval (1 business day):
- If property is more than 5 years old, a conditional approval is needed (if property is less than 5 years old, move directly to full approval process):
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- Borrower Credit Qualification:
- Must obtain loan approval for the new first trust mortgage loan through Millennial Home Loans
- Loan type: Conventional and Jumbo Loan programs only. No FHA, VA, and USDA
- Borrower has to have a minimum of 620 credit score
- DU Approval on new home loan. No manual underwrite
- Borrower Credit Qualification:
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- Departing Property Guideline and Requirements:
- Has to be valued at $250K – $2.5M (Maximum Equity Unlock is $2M)
- Property must be less than 2 acres and zoned as residential
- Home has to be no less than 750 square feet and contain at least one bedroom and one bathroom
- Liens from solar panels financing must be fully paid, but solar lease does not need to be fully paid off (payoff will be accounted for in the loan structuring )
- Not occupied by tenants during or after purchase
- No lease holds, no outstanding life estates, trusts will need trust agreements to review before approval
- Not eligible for FHA, USDA or VA financing (incoming/purchasing property)
- Not eligible if current home or new home is second home or investment property
- Eligible properties are single-family homes, townhomes and condos (note that for Condos, HOAs require additional approval)
- Must have access to public roads and utilities (water and electricity)
- Not a short-sale or pre-foreclosure, and no active foreclosure or bankruptcies
- Not be subject to any leases, including tenancy, oil/gas/mineral rights
- Current home can’t be in community with ongoing construction
- New purchase must have Certificate of Occupancy if new build
- No ongoing renovations affecting bathroom, kitchen, drywall, or landscaping
- No major defects in or ongoing repairs or upgrades to foundation, framing, roof, electrical, plumbing. HVAC, fireplace, and chimney
- Property must be approved before 115 days on market
- Expected days on market is less than 90 days from listing to pending sale
- Departing Property Guideline and Requirements:
- Cost: The greater of 2.40% of the sale price of the departing residence property or $9,000
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