Post by: pianoman9701 on February 18, 2022, 09:49:31 AM
Post by: bornhunter on February 18, 2022, 10:08:10 AM
Post by: Igor on February 18, 2022, 10:16:45 AM
John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?
Great question! That's where I am right now.......needing a short-term loan.
Post by: pianoman9701 on February 18, 2022, 10:29:50 AM
John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?
I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.
Post by: fly-by on February 18, 2022, 10:37:41 AM
John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?
I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.
Does this assume your have no loan on your primary residence? I assume Banner has a 100 CLTV limit.
Post by: pianoman9701 on February 18, 2022, 10:54:36 AM
I was assuming that. Thanks for pointing that out. If you have a balance on your current mortgage, Banner will lend you up to 80%LTV, combined 1st and HELOC.John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?
I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.
Does this assume your have no loan on your primary residence? I assume Banner has a 100 CLTV limit.
Post by: pianoman9701 on February 18, 2022, 11:16:38 AM
Post by: jackelope on February 18, 2022, 12:08:11 PM
I was assuming that. Thanks for pointing that out. If you have a balance on your current mortgage, Banner will lend you up to 80%LTV, combined 1st and HELOC.John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?
I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.
Does this assume your have no loan on your primary residence? I assume Banner has a 100 CLTV limit.
Would this be different than a bridge loan?
Maybe a better question is how is this different than a bridge loan?
Post by: pianoman9701 on February 18, 2022, 12:28:48 PM
I was assuming that. Thanks for pointing that out. If you have a balance on your current mortgage, Banner will lend you up to 80%LTV, combined 1st and HELOC.John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?
I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.
Does this assume your have no loan on your primary residence? I assume Banner has a 100 CLTV limit.
Would this be different than a bridge loan?
Maybe a better question is how is this different than a bridge loan?
In this instance, the HELOC is being used as a bridge loan. A bridge loan normally has a time limit of six months to a year, whereas a HELOC does not. HELOC rates could be as much as 5% lower than a bridge (But over such a short term, the interest rate means little). Closing costs would likely also be lower on a HELOC
Post by: jackelope on February 18, 2022, 12:44:44 PM