Home Buying Story 007 • Cañon City Home Purchase
A bridge loan on their existing home gave these buyers the funds to purchase their next home in Cañon City before selling. The process took about two weeks, and they bought without a home-sale contingency.
By Michael Shotnik | Broker & Owner, Milestone Home Mortgage | NMLS 218281
The obstacle was monthly income qualification, not the absence of home equity. These homeowners wanted to buy their next home in Cañon City before selling their existing home. A home equity line of credit was not workable because their monthly income did not support that option. Instead of treating that as the end of the conversation, we looked at a different financing structure.
See how a bridge loan on the buyers’ existing home funded their Cañon City purchase before selling, without a home-sale contingency. Michael walks through the income challenge, the financing sequence, and the result.
These details describe this completed financing transaction, not a promise of identical terms or results for another borrower.
The goal
Buy the next home in Cañon City before selling
The collateral
The existing home they were leaving, not the Cañon City purchase
Income documentation
Not required for this bridge loan
Bridge term and payments
12-month term; no monthly bridge-loan payments required during that term
Property valuation
AVM completed; no traditional appraisal required
Start to finish
Approximately two weeks
Purchase structure
Cash purchase in Cañon City using bridge-loan proceeds; no home-sale contingency
Other transaction detail
No real estate agent involved
No monthly payments does not mean no interest or costs. The bridge loan still requires repayment under its loan documents, including any applicable interest and fees. Property taxes, insurance, and any other continuing obligations are separate.
A home equity line of credit, or HELOC, was one of the options we explored on the home they were leaving. It could have provided access to equity, but the income qualification did not work for these homeowners.
That distinction mattered. Their goal was not necessarily to obtain a HELOC. Their goal was to purchase the next home without waiting for the current home to sell. Once we separated the goal from that particular loan product, we could evaluate another path.
We arranged a bridge loan secured by the existing home the buyers were leaving. The proceeds funded their next home purchase in Cañon City. The program used for this transaction did not require income documentation or monthly bridge-loan payments during its 12-month term.
The lender also accepted an automated valuation model, or AVM, instead of requiring a traditional appraisal. An AVM is a computerized estimate of property value. The property was still evaluated; this was not a transaction with no valuation review.
The important difference was the structure: we could access equity in the old home without forcing these borrowers through the HELOC income qualification that had not worked for them. These features were specific to the selected program and approved transaction.
We closed the bridge loan before the Cañon City purchase closing. That sequence put the funds in place first, so the homeowners could use them to buy the next property without taking out a purchase mortgage on it.
FIRST
The departing home secured the borrowing.
THEN
The bridge proceeds were available before the purchase closing.
NEXT
The buyers paid for their next home in Cañon City using those funds.
In everyday terms, they could essentially write a check for the new home. That does not mean they bought without borrowing. The borrowing was secured by the home they were leaving, rather than the home they were purchasing.
The financing process took about two weeks from start to finish. But speed was only part of the result.
Because the buyers did not need their existing home to sell before completing the Cañon City purchase, they did not have to submit an offer contingent on that sale. They negotiated favorable purchase terms without asking the seller to wait for their existing home to sell.
They went from an income-qualification roadblock to buying their next home with funds already arranged and no home-sale contingency.
Not qualifying for one product does not automatically mean the entire purchase is out of reach. In this case, a HELOC was not the solution, but a properly structured bridge loan was.
At Milestone Home Mortgage, we look at the goal, available equity, documentation, cash needs, timing, costs, and repayment plan together. We have options for a wide range of situations, and sometimes a little creativity makes a meaningful difference. The right answer still has to fit the borrower and the program requirements.
No. Those were features of the program used in this transaction. Another bridge loan may require different documentation, payments, valuation, credit, or equity standards. This story is not a blanket promise of no-documentation financing.
No. An automated property valuation was completed. A traditional appraisal was not required for this bridge loan. Other properties and programs may require one.
A delayed sale does not erase the loan’s repayment deadline. Before choosing a bridge loan, review the maturity date, payoff amount, interest, fees, sale expectations, and a realistic backup plan. Do not assume an extension or refinance will be available. Failing to repay a loan secured by your home can put that home at risk.
No. This story describes proceeding without a home-sale contingency. It does not say that the buyers waived inspections, title review, or every other contract condition.
That was the approximate result here, not a guaranteed closing period. The property, program, valuation, title work, documentation, and closing coordination affect the timeline.
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Independent education: the Consumer Financial Protection Bureau explains automated property valuations and the risks of a large payment at the end of a loan. These resources explain general concepts, not the terms or approval of this individual transaction.
Before assuming your move has to wait, let’s talk through the full picture. A no-pressure consultation can help identify the options worth comparing for your equity, timing, and financing needs.
Privacy and important context: This real transaction has been anonymized. Names, exact addresses, and unnecessary identifying information are omitted. The case study is educational, not a rate quote, loan approval, or commitment to lend. Program features, documentation, costs, eligibility, valuation, and timelines vary and may change. No monthly payment requirement does not mean no interest, fees, or repayment obligation. Financing is subject to applicable borrower, property, lender, and investor requirements. Not all applicants or properties qualify. Michael Shotnik, NMLS 218281. Milestone Home Mortgage, LLC. Equal Housing Opportunity.
Michael and Melissa are always a pleasure to work with. They are extremely responsive, professional and work hard to get the best loan for us. I would recommend Colorado Mortgage to anyone. Thank you for another great experience!
Milestone Home Mortgage LLC NMLS #2588937. Michael Shotnik NMLS: 218281, CO License: 100017466. Not licensed in Alaska or New York. To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.
