Pulaski Bank has a unique portfolio loan known as a Bridge Loan.  We review each bridge loan on a case by case basis. The concept is that we allow a buyer to purchase their next home without their current home being sold.  It is truly a 100% loan.  To make this loan a ‘smart decision’ for both the buyer and our bank, we place a lien on the buyer’s existing home.  There are no payments on the lien we place on the existing home … the payments are all included in the 100% loan on the new home.  (We call this cross collaterizing on two properties, the new home and on the equity of the existing home.)

The interesting news is that this is an interest only loan.  The loan is a 'temporary' loan, allowing you and your family to move forward with the purchase of a new home and get your lives started in your new location.  The even better news is that there is no monthly house payment during the time you own two homes, but the interest meter is running from the day you purchase your new home.  The interest will accumulate and will be paid when you sell your home along with the original bridge loan balance.  There are some Cumulative Loan to Value restrictions that might require monthly payments and I can tell you more about that if necessary (please see the Pulaski Bridge Payment Abatement loan below).

If the equity is tied up in your current home, we do allow you to roll your closing costs into the loan and create a 103% loan.
As you know, once you become 'pre approved', you can act like a cash buyer, of course, subject to an appraisal.  I have found that many of my customers realize the power of being pre approved and quick closings, and have used the bridge loan as a negotiating tool, to obtain better terms on the new home purchase.
Once you sell your current home, we collect the equity, apply it to the bridge loan balance, and refi to the loan of choice for you, whether that is a 15 year FIXED, a 5 YR ARM mortgage or a 30 Year FIXED mortgage.

The Pulaski Bridge Payment Abatement Loan
We have noted with a longer time on the market and with some home values dropping, our Pulaski Bridge Loan review is finding some buyers needing to make monthly payments, … which was one of the highlights of the original bridge loan.
Now, with changes in the market place, we have created a great loan for Buyer’s and Seller’s alike.  Rather than have a buyer ‘low ball’ a property, which is a detriment for the local community, we suggest looking at making a full price offer.  At the same time, the Buyer should negotiate that the Seller will pay “x” months of house payments.  Let’s, for example, say that is 9 months at $1,500 / month.  At closing, Pulaski Bank will create a Savings Account for the Buyer, which is funded by the Seller’s agreement to pay house payments while the Buyer is trying to sell their home!  In our example, the buyer’s savings account will be funded with $13,500 from the Seller’s proceeds.  Each month, Pulaski Bank will debit the account and apply $1,500 to the Bridge Loan.

So what if the Buyer sells their home two months after the purchase of their new home with the Pulaski Bank Bridge Loan you ask?  Pulaski Bank will apply the remaining balance of the Savings account to the bridge loan balance.  So if our buyer receives a ‘lower’ offer than they may have expected … the short fall may already be in the Pulaski Bank Savings account.