Is there such a thing called a “bridge loan” ?
Posted March 6th, 2009 by admin 5 Comments »
James P asked:
I am looking into building a house. The problem is say I own a house worth x dollars and I owe less than the value of the house. I took out a home equity line of credit for the balance of the homes value. Now the problem is that land costs roughly the whole amount of the line of credit so if I buy the land I will have no money to start construction on the land I would now own. Is there a loan the banks can give me with next to no payments until the new house is built so I can sell the first to pay off the line of credit and the first mortgage?
I am looking into building a house. The problem is say I own a house worth x dollars and I owe less than the value of the house. I took out a home equity line of credit for the balance of the homes value. Now the problem is that land costs roughly the whole amount of the line of credit so if I buy the land I will have no money to start construction on the land I would now own. Is there a loan the banks can give me with next to no payments until the new house is built so I can sell the first to pay off the line of credit and the first mortgage?
