April 3rd, 2017 2:48 PM by Andrew Liu, President NMLS#249736
Mr. Young was in a hurry to purchase a home.
His wife was about to give birth to their first child, and coincidently, the expiration date on lease to their rental home was also due very soon. He faced a dilemma: If he renewed his lease, he did not think he would move his family in the next few years, as with the new born it would be extremely difficulty to move.
However, he had the down payment saved and his wife was really wishing to settle into a home before the baby was born, so that they can raise their child without having to move again. The problem was, he did not qualify for a loan: He had just started his new job, he had barely been there a few months. Without a job history, no lender was willing to lend him money for a home, and take on that risk.
Mr. young came to see me. After the interview, I provided him with a solution: Take on a Bridge Loan to acquire the home first. Although, the bridge loan carried high interest rate, it nevertheless had no prepaid penalty, and could get him into a house right away without the job history documentation. Once Mr. Young built up his job history, I would help him to refinance out the bridge loan and into a conventional loan.
That is exactly what happened! A few months after taking a bridge loan and buying a home for his family, Mr. Young got out of this high interest rate loan, applied for and received a conventional loan and cut his monthly mortgage payment in half.
Mr. Young is absolutely a happy camper now!