Compass Launches Bridge Loan Services to Close Gap Between Selling and Buying a Home

Real estate brokerage Compass has launched a unique new offering known as “Compass Bridge Loan Services” that solves the buy before you sell conundrum.

Many existing homeowners buy replacement properties when selling their current ones, but it can be tricky to time a sale and purchase concurrently.

Aside from mortgage lending issues, like coming up with a down payment and balancing two monthly mortgage payments, there’s also the other buyer/seller to worry about.

This can be especially challenging in a hot market where all-cash offers are the norm, or if competition makes things like contingencies hard to draw into the contract.

To alleviate these pressures, Compass has joined forced with two large mortgage lenders, Freedom Mortgage and Better, to help their home sellers get a bridge loan.

How Compass Bridge Loan Services Works

Sign listing agreement with a Compass real estate agent
Apply for a bridge loan with any bank, including their preferred lenders
Use funds to purchase replacement property and move in when you want
Sell old property and use proceeds to pay off the bridge loan

First, the home seller signs an exclusive contract with a Compass real estate agent to sell their existing home.

Next, they apply for a bridge loan with the bank of their choice, including Compass’ preferred lenders Freedom Mortgage and Better.

Once approved for the bridge loan, the home seller can move into their new home using the proceeds for down payment or to simply make monthly housing payments.

To sweeten the deal, Compass agents can “front” the first six months of bridge loan payments to keep liquidity a non-issue for the cash-constrained homeowner.

Compass has already rolled out the bridge loan service in select markets nationwide and early feedback has apparently been “overwhelmingly positive.”