Rocket Mortgage, a division of Rocket Companies (NYSE: RKT), announced the addition of bridge loans to its product offerings.
According to a statement from the Detroit-headquartered company, the new product “allows current homeowners to use equity to compete shoulder-to-shoulder with cash buyers – allowing them to purchase their next primary residence before selling their current one.” Rocket Mortgage’s bridge loan gives homeowners up to six months to sell their home, with interest-only payments throughout that period.
Homeowners can qualify for the new bridge loans provided that they have listed their residence, are under contract with a listing agent or have a guaranteed buyout agreement in place and have an associated Rocket Mortgage purchase loan.
“Buying and selling a home at the same time can be one of the most stressful parts of the journey,” said Bill Banfield, chief business officer and economist at Rocket. “Rocket Mortgage’s new bridge loan alleviates this by helping people purchase on their terms – not the market’s. It removes one of the biggest barriers to moving: immediate access to the equity in their current property. With this new flexibility, buyers can quickly and confidently secure their next home.”
