Rocket Mortgage is now offering bridge loans – a new product that allows homeowners looking to buy a new home to use their equity to compete shoulder-to-shoulder with cash buyers.
The strategic solution is designed to help buyers wrestle back control in today’s competitive housing market, allowing them to purchase their next primary residence before selling their current one, Rocket says in a release.
This provides both financial flexibility and eliminates the uncertainty and reluctance of home sellers that often comes with so-called “contingent” offers.
With high home prices and tight housing inventory, many buyers struggle to compete without first selling – leading to delays and missed opportunities. Yet the average homeowner has $181,000 in untapped equity, a powerful resource to make a strong offer.
Rocket Mortgage’s bridge loan unlocks that equity upfront, providing funds for a down payment or closing costs in the interim.
“Buying and selling a home at the same time can be one of the most stressful parts of the journey,” says Bill Banfield, chief business officer and economist at Rocket. “Rocket Mortgage’s new bridge loan alleviates this by helping people purchase on their terms – not the market’s. It removes one of the biggest barriers to moving: immediate access to the equity in their current property. With this new flexibility, buyers can quickly and confidently secure their next home.”
Rocket Mortgage’s bridge loan gives clients up to six months to sell their home, with interest-only payments throughout that period. To qualify, clients must have their home listed, be under contract with a listing agent or have a guaranteed buyout agreement in place. The client must also have an associated Rocket Mortgage purchase loan to be eligible.