MEP’s Instant Equity/Bridge Loan Program helps homebuyers
Buying a home in South Carolina can be a nerve-wracking experience due to the lack of inventory in the current market. One of the hurdles many homeowners encounter is the financial barrier, specifically coming up with the funds for a down payment and closing costs on a new property without selling their current property.
Luckily, the MEP’s Instant Equity/Bridge Loan Program is here to help. This type of financing is designed to assist homeowners in bridging the financial gap between selling their current home and buying a new one.
MEP’s Instant Equity/Bridge Loan Program uses the equity from their current home as collateral for a “second mortgage.” This second mortgage is used for a new home’s down payment and closing costs. The loan is short-term.
Now, let’s dive into the benefits of MEP’s Instant Equity/Bridge Loan Program. Firstly, this loan program helps make a buyer’s offer more competitive, especially in a seller’s market. In a hot housing market, having the funds for a down payment and closing costs not contingent on a home sale is incredibly advantageous for homebuyers trying to win a bidding war. Homebuyers can have a strategic advantage with the removal of contingencies. Second, this loan program may help avoid private mortgage insurance (PMI) by allowing buyers to pay at least 20% of the purchase price as a down payment.
Private mortgage insurance is a type of mortgage insurance they might be required to pay for if they have a conventional loan and they make a down payment of less than 20% of the home’s purchase price. This premium is usually added to their monthly mortgage payment or can be paid with a one-time up-front premium at closing.
While rates can be higher than some conventional loans, this is offset by the short-term nature of the loan. In the long run, buyers could save a lot of money since they are not paying PMI, leading to long-term savings.
An Instant Equity/Bridge loan is a great way for homebuyers to access their equity before selling their current home and an excellent alternative to a HELOC. The funds for the down payment and closing costs are sent directly to the closing. There are no prepayment penalties, allowing buyers to pay off the loan in full before it is due.
MEP’s Instant Equity/Bridge Loan Program is a great option for South Carolina homebuyers needing bridge financing. Choosing the right financing option is crucial in ensuring a smooth homebuying journey. With MEP’s Instant Equity/Bridge Loan Program, homebuyers can bridge the financial gap and secure their dream home.
Contact one of our experienced loan officers near you to get started!
