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Texas mortgage bridge loans are similar to bridge loans that are offered in other states. A bridge mortgage loan is useful if you have a current house for sale and have found the “home of your dreams” but don’t want to make an offer on it contingent upon the sale of your current home. If you stand a good chance of losing the new home to a buyer that’s ready to jump in and make the sale ahead of you, you’ll need to come up with financing quickly to purchase the new home.

Texas mortgage bridge loans allow you to take out a temporary mortgage on the equity you have in your for-sale home and use that money for a down payment on the new home you want to buy. This will enable you to close on your new home before you even sell your for-sale home. This loan “bridges” the gap between the money that you have on hand and the money that you need in order to purchase the new home you want to buy. So in essence you have two mortgages. One is on the home that is still for-sale and the other is on the new home.

To qualify for a bridge loan, you must have a solid income and good credit. Generally, bridge loans are made for six-month or one-year terms and the additional costs of interest, fees, points, etc. can be higher than traditional 30 year fixed loans. Sometimes, the rates are as high as 2% points more.

There are basically two variations of Texas mortgage bridge loans:

1) The first variation bridge loan will allow you to pay off the mortgage completely on your for-sale home and provide you with the cash needed to make a down payment on the new home. With this variation bridge loan you will not be required to make any monthly payments. At the time the for-sale property is sold, the proceeds will be used to completely pay off the bridge loan including the accumulated interest.

2) The second variation bridge loan, similar to the one described above, allows you to take out a temporary mortgage on the equity you have in your for-sale home and use that money for a down payment on the new home you want to buy. However, you will not be required to make monthly payments on the loan but instead make a payment in full when your for-sale property sells.

Bridge loans became common during the past real estate boom to purchase residential properties in the hot housing market. Before this period bridge loans were mainly the provenience of the commercial real estate market. Because of the demand for bridge loans, many Texan lenders made these loans available to the local market. Below are some lenders you may want to check out:

1) Residential Texas mortgage bridge loans:
- Prudential Texas Properties at www.prudentialtexas.com
- Summit Lending Group at www.texasmortgagecenter.com

2) Commercial Texas mortgage bridge loans:
- CD Reed Mortgage Bankers at www.cdreed.com
- Urban Coyote Funding at www.uslandfunds.com

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