I’m Travis Buis, a loan officer with Elite Home Lending in Myrtle Beach. A bridge loan in Myrtle Beach usually comes up for one reason. Someone is moving to the coast, or moving up, and their current home hasn’t sold yet.
What is a bridge loan?
It’s short-term financing that uses the equity in the home you own now to help buy the next one. It bridges the gap between buying and selling.
Once your current home sells, that sale pays the bridge loan off. Then you’re left with a regular mortgage on the new place.
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When does a bridge loan in Myrtle Beach make sense?
Who uses one here?
Mostly buyers relocating from the Northeast or the Midwest whose home back there hasn’t closed. Local owners moving up use them too, when they’ve found the right house and don’t want to lose it while they wait on their own sale.
It also helps when a seller won’t accept an offer that depends on you selling first. On a property with other interest, dropping that contingency is sometimes the only way to be taken seriously.
What does it really cost?
You’re carrying two properties at once. That’s the honest headline, so I ask people to think it through rather than just qualifying them.
Bridge financing is short-term by design, and short-term money costs more than a standard mortgage. Expect origination fees, an appraisal and closing costs on top of the rate. The real question isn’t whether it’s expensive. It’s whether it costs less than losing the house you want.
Who qualifies for a bridge loan?
Lenders look at three things.
- Equity in your current home. This is what the loan leans on, so you need a meaningful amount of it.
- Your ability to carry both payments for a while, measured through your income, debts and credit.
- A believable sale. The more certain your current home’s sale looks, the easier the approval.
Documents look much like a regular purchase: income records, bank statements, your current mortgage statement and, ideally, the listing or sale contract on the home you’re leaving.
What has to be true before I’d recommend one?
Your exit has to be real. If your current home is under contract with a solid buyer, that’s real. If it isn’t listed yet and you’re hoping the market cooperates, that’s a wish. In that case I’d rather tell you no than watch you carry two mortgages into a slow winter.
Timing matters here more than in most places. Think about what time of year your current home will be on the market.
What are the alternatives?
Sometimes a HELOC on the home you’re leaving does the same job for less. Other times, a contingent offer or a later closing date solves it without any extra loan.
If you’re relocating, get pre-qualified early. I’ll map out whether you need a bridge at all before you start touring houses.
Bridge loan FAQ
Why would someone get a bridge loan?
To buy a new home before the current one sells, often when relocating or when a seller won’t accept an offer that depends on selling first.
What are the downsides of a bridge loan?
It costs more than a standard mortgage, and you carry two properties until the first one sells. If that sale stalls, the pressure builds quickly.
Is a bridge loan hard to get?
It depends mostly on the equity in your current home, your ability to carry both payments, and how certain the sale looks.
Is there a cheaper option than a bridge loan?
Sometimes. A HELOC on your current home, a contingent offer or a later closing date can solve the same problem for less.
