Wilmington, N.C.-headquartered AAXA Discount Mortgage, a discount mortgage company, now offers bridge loan programs to homeowners who are considering purchasing real estate while their existing property is listed for sale.
One of the new products can be used to refinance any existing mortgages on the for-sale property, to pay for title expenses and any loan fees, and to cover up to nine months of mortgage interest in advance, the company says. Any remaining proceeds can be used for the purchase of a new property.
A second bridge loan product is essentially a home equity line of credit (HELOC) of up to 95% of the approved line amount for primary residences (80% for second homes). This program has no private mortgage insurance, and its interest-only payments keep payments low while the other property is on the market. AAXA adds that this HELOC bridge loan has less than $20 in lender closing costs.