Rocket Mortgage has announced the introduction of bridge loans, a financial product aimed at helping homeowners navigate the competitive housing market. The new offering allows current homeowners to leverage their home equity to purchase a new primary residence before selling their existing one. This strategy provides financial flexibility and reduces the uncertainty associated with contingent offers.
According to Rocket Mortgage, many buyers face challenges due to high home prices and limited housing inventory, often needing to sell their current homes before making new purchases. The company notes that the average homeowner possesses $181,000 in untapped equity, which can be utilized for down payments or closing costs through these bridge loans.
Bill Banfield, Chief Business Officer and Economist at Rocket Mortgage, stated: “Buying and selling a home at the same time can be one of the most stressful parts of the journey. Rocket Mortgage’s new bridge loan alleviates this by helping people purchase on their terms – not the market’s."
The company highlighted that several areas in the United States remain highly competitive for buyers. In San Jose, 67.1% of homes sold above asking price in February. Other cities like Oakland, San Francisco, and Newark also saw more than half of properties selling for over list price.
Bridge loans offer advantages even in less competitive markets by allowing buyers to avoid double moves and temporary housing while securing favorable offers on their existing properties. These loans provide clients up to six months to sell their homes with interest-only payments during this period.
Eligibility for a bridge loan requires having a listed home or being under contract with a listing agent or guaranteed buyout agreement. Additionally, clients must have an associated Rocket Mortgage purchase loan.
This initiative is part of Rocket's broader mission to facilitate homeownership by removing financial barriers. Earlier this year, they launched RocketRentRewards, enabling first-time buyers to earn lender credits based on past rent payments.
For further details about bridge loans from Rocket Mortgage, visit www.rocketmortgage.com.