Bridge Loans

The Simple Bridge is our home equity bridge loan program, providing Windsor Mortgage conventional purchase loan clients with the option to access the equity in an existing primary residence as a source of funds for the downpayment on the purchase of a new primary residence. This product will be offered in most states Windsor Mortgage operates, available to individuals working through Windsor Mortgage to obtain a primary residence purchase loan.

Program Highlights

  • $250,000 maximum loan amount
  • 6-month balloon term with interest-only monthly payments
  • Option to renew an additional 6-months for a $,2000 fee
  • 90% maximum combined loan-to-value (CLTV) ratio
  • An interest rate of 4.50% (5.575% APR) if less than or equal to 80% CLTV
  • Interest rate of 5.50% (6.587% APR) if greater than 80% CLTV
  • Associated closing costs can be rolled into the bridge and paid out of loan proceeds

Logistics

  • The loan will be originated by a Plains Commerce Bank
  • The borrower does not need to have future primary residence identified to qualify for a bridge loan
  • Desktop appraisal with an exterior inspection will be obtained to value the subject property
  • Only requires a title search (unless bridge loan will be in a 1st lien position) closed with a mobile notary

Terms & Qualifications

  • The broker/correspondent must be working through Windsor Mortgage to obtain a conventional primary residence purchase loan
  • Collateral must be the borrower's current primary residence
  • A credit score of 680 or above
  • The max debt-to-income (DTI) ratio of 50%; must include payments for departing residence, bridge loan, and new residence
Payment Example (80% LTV): A loan of $100,000 for 6 months at a simple interest rate of 4.50% would yield an interest-only payment amount of $382.19 per month and one final payment of $100,382.19 with an annual percentage rate (APR) of 5.575%. Based on a CLTV less than or equal to 80%. The payments do not include amounts for taxes and insurance and the actual payment obligation will be greater. Loans are subject to credit approval.
Payment Example (90% LTV): A loan of $100,000 for 6 months at a simple interest rate of 5.50% would yield an interest-only payment amount of $467.12 per month and one final payment of $100,467.12 with an annual percentage rate (APR) of 6.587%. Based on a CLTV less than or equal to 90%. The payments do not include amounts for taxes and insurance and the actual payment obligation will be greater.
Exceptions may be approved on case-by-case basis – contact your Account Executive to inquire on a specific scenario.
Loans are subject to credit approval. For real estate mortgage professionals only. Not intended for distribution to consumers or other third parties.

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