The Equity Bridge Loan from American Advantage Mortgage Company

American Advantage introduces the Equity Bridge Loan to help current home-owners unlock the equity in their current home to purchase a new home—avoid a home sale contingency clause.

One of the greatest obstacles to buying a new home is the down payment, which represents a significant capital outlay for most home buyers. For buyers who currently own a home, the funds they need for a down payment is often as close as their current home, but traditionally, getting those funds meant selling your current home first.

The Equity Bridge Loan allows you to borrow against your current home's equity to make the down payment on your new home — before your old home has sold!

Here’s how it works:

1. Use the Equity Bridge Loan from American Advantage to get the funds you need to purchase your new home from your current home before it is sold.
2. Make your down payment on the purchase of the new home using the funds obtained with the Equity Bridge Loan.
3. Payoff the Equity Bridge Loan when your old home is sold; you can also apply the proceeds from the sale to the loan for the new home.
4. Make no out-of-pocket payments on your old home for 6 to 9 months; make payments on the new home only. If you pay off the Equity Bridge Loan before the 6 or 9 months have elapsed, a refund of the remaining funds in escrow is credited with the payoff.

Here are a few of the benefits to the Equity Bridge Loan from American Advantage Mortgage Company:

• Buyers qualify for a new purchase without counting the old house payments or bridge financing!
• Easier to qualify for “more home” on a new purchase
• Home sale contingency-free approval; avoids the snag of a contingency clause
• Allows 12 months for the old home to sell
• Old home sale need not be a “distress sale”
• Mortgage payment on purchase only
• 80% loan-to-value ratio to $500,000
• 70% loan-to-value ratio to $600,000

Call today to find out how to more about this helpful new loan program can be used in an overall financing strategy that ensures you will be in your new home soon!

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