Q: "We hear the word Bridge Loan frequently. Just what type of loan is this?"

A: A "Bridge Loan" is a type of financing that is secured by the home you currently own. This home is generally listed for sale. A Bridge Loan is used to finance the 2nd home that you wish to buy & this loan is paid off when the first home sells. Be an informed borrower when it comes to this type of loan. Ask about the interest costs, the up-front fees, & especially, what happens if your first home stays on the market - Unsold - longer than you had anticipated?

Q: "I have a car payment. Will this reduce my ability to qualify for a home loan?"

A: A car payment will generally reduce the loan amount that you can qualify for. There are some loan programs (not all) that look at the remaining amount of car payments and whether you have a good credit. If you have approximately 6 to 10 payments left, your automobile debt may not count against you. the reasoning is that you car loan will be paid off soon after you move into your home.

Q: "My child was in a serious auto accident & spend many months in the hospital. We were forced to declare bankruptcy due to medical bills. Is there a chance that I can still get a home loan?"

A: If your credit was good prior to the extended hospitalization, lenders will often look at your situation with understanding. Though it generally takes two years of good credit after declaring bankruptcy to qualify for a mortgage, it you have maintained good credit since that time, some lenders will be willing to discuss a home loan with you a year after you have declared the bankruptcy.

Q: "I am a school teacher who has worked a summer job with the same employer for the last 5 years. Will this extra income help me qualify for a home loan?"

A: Under many loan programs, the answer is Yes if the income is regular & the employer can verify that you will continue to return to the position.

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