Recent News and Articles on the Keywords: bridge financing + bridge + financing  Related to the article below (Last Update: 8/4/2008)

Mirabela makes first drawing under financing package FOXBusiness - Mirabela Nickel Limited (TSX: MNB, ASX: MBN) is pleased to announce it has drawn down US$50m under the US$80m bridge financing facility recently announced ... Mirabela Nickel makes first drawing under financing package ... RTT News Mirabela takes out $US50m loan WA Business News (subscription) all 10 news articles »  ASX:MBN - TSE:MNB - BCS Atlantan who headed $14M investment scheme sent to prison Bizjournals.com, NC - At the time, Christou actually operated a mortgage brokerage firm Atlas Mortgage Inc. He claimed his bridge loan financing business grew out of his ... Equus Total Return, Inc. Provides Financing for Clean Portable ... MarketWatch - This bridge financing creates a platform with an ideal partner enabling Trulite to continue to reach performance milestones and to commercialize our ...EQS - PINK:TRUL RELM Uses Unique Financing Structure for Pending Acquisitions FOXBusiness - Aug 2, 2008 To facilitate the closing of the Company's larger acquisition, the nucleus of which is a hotel property, RELM is negotiating bridge financing with ...PINK:RELM - OTC:CMTX CNNMoney.com The rise and fall of Jimmy Cayne CNNMoney.com - Perhaps unfairly, he will probably go down in the annals of finance as the Nero of the credit crisis. Instead of fiddling while Bear Stearns burned, ... Jimmy Cayne's Latest Own-Goal Conde Nast Portfolio Bear Stearns' Cayne was near death in Sept-Fortune guardian.co.uk all 40 news articles » ? Gov. Patrick signs $3 billion plan to speed bridge repair across ... The Republican - MassLive.com, MA - The law calls for some creative financing. The state will borrow $1.1 billion against future federal transportation aid to the state. ... Hindalco may downsize rights issue Economic Times, India - To finance this, it had taken bridge loans of $3.03 billion from a host of banks. These loans need to be refinanced by November. ...BOM:500440 HCP Announces Second Quarter 2008 Results WELT ONLINE, Germany - FINANCING TRANSACTIONS In April 2008, in connection with HCP?s addition to the S&P 500 Index, we issued 17 million shares of our common stock. ... HCP Announces Second Quarter 2008 Results Business Wire (press release) all 20 news articles »  HCP - THC State-Owned SPV To Take Over As Second Penang Bridge Concession Holder Bernama, Malaysia - ... holder of the Second Penang Bridge, which in turn will give out the contract to build the link, Second Finance Minister Nor Mohamed Yakcop said Monday. ... Govt To Form Task Force To Enhance Women's Role In Economic ... Bernama Malaysia's Economic Growth To Moderate In Second Half, Says Nor ... Bernama all 3 news articles » Altra Holdings Announces Record Financial Results for the Second ... MarketWatch - ... net of tax -- 180 -- 180 Bridge financing fee on TB Woods acquisition, net of tax -- 282 -- 282 Deferred financing expense eliminated on pay down of TB ...AIMC

What is bridge financing?

Homebuyers who already own a home often use the equity in their home for a down payment on a new home. (The equity is the difference between the current value of a property and the loans secured against it.) One way to do this is to sell the existing home first, then buy the new one. Another way is to use bridge financing (also called "swing" or "interim" financing).

A bridge loan is a short-term loan that is secured against the property that is being sold. One problem with most bridge loans is that the loan is usually due in six months. Six months may seem like plenty of time to sell a home. But if the market were to change, you could end up owning two homes for longer than you anticipated. So you should make sure that the holder of the bridge loan will grant you an extension if necessary.

Years ago a homebuyer bought a new home using bridge financing. She then put her home on the market. She was unable to sell it in time to pay back the bridge loan. In order to avoid foreclosure, she put the new home on the market. The new home sold quickly, but the seller lost a lot of money. And she ended up back where she started -- in the home she'd hoped to sell.

In order to qualify to buy a new home using bridge financing, you need to satisfy the lender of the bridge loan and your new mortgage lender that you are qualified to handle the temporary financial burden of owning two homes. Some bridge loans are interest-only loans. And some have deferred payments. With this type of loan, the interest payments accrue and are paid back to the lender when the bridge loan is paid off. This lowers the amount of your monthly payments and makes qualification easier.

To make it even easier to qualify, some mortgage lenders will give you credit for rental income on the home you're selling. In this case, you may have to provide the lender with a signed lease agreement. Be aware that fabricating a lease if the property is not really going to be rented can be considered lender fraud, a serious crime.

Most lenders won't give you a bridge loan for the entire amount of the equity in your home. The amount of the bridge loan plus the remaining balance on your mortgage usually can't exceed 80 percent of the value of your home. And if you already have a second mortgage on your home, you may have difficulty finding a lender who will give you a bridge loan.

FIRST-TIME TIP: Another way to create bridge financing is to structure the financing on the new home with a combination of a first mortgage and a second mortgage. You'll keep the first mortgage for the long-term. You can pay the second mortgage off when your old home sells. The beauty of this scheme is that most second mortgages have a long term; many are due in 15 years. So this relieves the anxiety of having to pay the loan off before you're ready. You will need to have at least enough cash to make a 10 percent down payment. Also, make sure that the second mortgage doesn't have a prepayment penalty.

Buyers who have a line of credit secured against the home they're selling often use that to provide down payment funds. Some lenders, however, have restrictions against this.

In a soft market, the seller may be willing to do bridge financing for you.