Bridge Financing Program
RMG understands that sometimes you might need short-term assistance to purchase a new home before the closing date of the current residence.
Our Bridge Financing Program is a smart, temporary financing solution to bridge the purchase of the second property. This short-term loan can provide peace of mind, allowing customers to borrow against the value of their current home to secure a new home.
Bridge Financing is interim financing used to “bridge” your down payment that is not available at the time of closing. The down payment is not available because it is coming from the net sale proceeds of an existing property wherein the closing date falls after the purchase of your new property. In this case, you would carry two mortgages for a small period of time.
The maximum term for a bridge loan is 45 days (or 120 days upon exception if RMG secures a collateral bridge loan by way of a second mortgage). The minimum bridge mortgage amount is $5,000.00 and the maximum is the lesser of the purchase price less the mortgage amount OR the sale price less the existing mortgage balance less 7.00% of the sale price as estimated closing costs. Bridge loans that exceed $150,000.00 must be registered as collateral second mortgages on your first property.
A processing fee will be deducted from the bridge loan funds.