What Is Deposit Financing?
- This type of financing comes into play when you have purchased a home, but your deposit is tied up in the sale of your current home.
- A deposit is different from a down payment and demonstrates the buyer’s good faith to close on their purchase agreement. If you find yourself needing these temporary funds, there are options available.
- How it Works:
• A firm sale contract for your current home must be provided.
• The funds leant are secured against your current home.
• The amount borrowed for your deposit on your new home must be paid back in full once the sale of your current home completes.
- Keep in mind if the completion date of your current home falls after completion of your newly purchased home, you may then require bridge financing for your down payment as well.
- It’s that easy!