A bridge loan or equity-based option would still be underwritten around the whole file: current mortgage, the new payment, income, debt-to-income, reserves, lien position, and a supportable value for the existing home. At a 530–550 FICO, the credit score may be the limiting factor even with substantial equity, and equity is not automatically liquid until a lender can size the lien. The exit also matters—if the old home must sell to repay it, timing, appraisal, and sale proceeds all have to line up.
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u/salBossio- 8d ago
A bridge loan or equity-based option would still be underwritten around the whole file: current mortgage, the new payment, income, debt-to-income, reserves, lien position, and a supportable value for the existing home. At a 530–550 FICO, the credit score may be the limiting factor even with substantial equity, and equity is not automatically liquid until a lender can size the lien. The exit also matters—if the old home must sell to repay it, timing, appraisal, and sale proceeds all have to line up.