Does the property I already own have to be free and clear?

No. It needs equity. If it has a first mortgage that is current, we take a 2nd trust deed on it and a 1st on the new purchase, or we pay off the existing loan if that works better.

Can I release the cross later?

Yes. Once the loan is paid down so the remaining property or properties carry it at no more than 65% loan-to-value, or the crossed property is sold and the proceeds applied, the trust deed on it is reconveyed.

Cross-collateral bridge loan for a purchase

Q: Can I buy a property with no money down using equity in another property?

Yes. MyBridge Loans records a trust deed on both the property being bought and one or more properties the borrower already owns. The combined loan is sized at up to 65% of the combined value, which can exceed 100% of the purchase price of the new property.

MyBridge Loans funds purchases with little or no cash down by taking a trust deed on the new property and on one or more properties the borrower already owns. The combined loan is sized at up to 65% of the combined value, so it can exceed 100% of the purchase price. No minimum FICO, no income documentation. Same-day answer on any scenario. Typical funding in two weeks.

How the math works

Buying a $1,000,000 property. You own a rental worth $800,000 with a $200,000 first mortgage. Combined value $1,800,000, times 65%, is $1,170,000. Minus the $200,000 existing first leaves $970,000 available. That covers 97% of the purchase and most of the closing costs. We record a 1st trust deed on the new property and a 2nd on the rental, behind its existing first, which stays in place.

When it fits

Buying before selling. Cross the house you are selling, buy the next one now, release the cross when the old one closes.
An auction, off-market, or short-fuse purchase where there is no time to raise a down payment.
Keeping cash in the business instead of tying it up in a down payment.
A property that will not appraise high enough on its own, carried by equity elsewhere.

What we need to say yes

Addresses and values of every property, and what is owed on each.
Any existing first mortgage on a crossed property is current, no lates in 12 months, no forbearance.
A business purpose. The new property is an investment, or the funds go to a business use.
An exit: sale of one of the properties, refinance, or a business event.

Terms

1st trust deeds 9.5% to 10.99% and up; the 2nd on the crossed property prices with the package. Interest-only payments. Usually 1.5 to 2 lender points plus broker, 3-year note, 3 to 6 month prepayment penalty. Loans from $100,000 to $4,000,000 and up. Underwriting $1,995, no processing fee, third-party appraisal on each property, title, escrow and credit at cost. Exceptions available.

Funded examples

City and state only, no borrower information.

Newport Beach and Laguna Beach, CA. $4,500,000 purchase, two single-family residences, 43% combined LTV, 10.875%, 3-month note, 810 FICO.
Newport Beach, CA with a Koloa, HI cross. $4,500,000 1st trust deed on a single-family residence, 55.46% LTV.
Bellevue, WA. $3,000,000 purchase with commercial and single-family crosses, 50% LTV, 12-month note.
Snoqualmie, WA. $1,675,000 single-family residence with a cross, 60.4% LTV.
Big Bear, CA with an Agoura Hills, CA cross. $1,532,500 bridge, 55% LTV.
Irvine, CA. $1,319,990 purchase, 1st trust deed crossed with two other homes.
Lake Forest, CA with a San Francisco, CA cross. $1,100,000 purchase, 9.5%, 4-month note, 754 FICO.
Mission Viejo, CA. $1,030,000 1st trust deed crossing two properties.
Covina, CA with a Glendale, CA cross. $887,000 purchase, 65% LTV, 9.5%, 12-month note, 720 FICO.
Monrovia, CA with a Santa Margarita, CA cross. $850,000 purchase, 35% LTV, 10.5%, 6-month note, 798 FICO.
Phoenix, AZ. $400,000 2nd trust deed on a condo crossed with two other condos.

How to get a quote

Send the purchase address and price, plus the address, value, and amount owed for each property you would cross, along with FICO and exit, to the scenario form, or call 949-463-9898. You get a yes, no, or what's missing the same day.