Swing/Bridge Loans Short term financing to help you bridge the gap from your existing home to your new home.
If you need temporary financing to help you purchase a new home while you wait for your current home to sell, Traditions Mortgage has a Swing Loan (also known as a Bridge Loan) product that may be right for you. This loan offers competitive rates and flexible terms to fit your situation, as well as interest-only payments.
Swing loans are also referred to as Bridge Loans because they provide the short-term financing you need to help you bridge the gap between paying off your current mortgage and putting a down payment on a new home. While this is not the only way to get the funding you need, it is one of the most common ways for homeowners to secure short-term financing when moving to a new primary residence.
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Why would you need a Swing Loan?
When you already own a home and want to buy a new one, you likely plan on using the equity you have built up in your current home as all or part of the down payment. However, if you close on the new house before you have sold your current one, you need a placeholder for the money you expect to get from the sale.
This is where the Swing Loan comes in. You may be eligible to borrow funds against your current home that can be used as all or part of the down payment on the new home. As soon as you sell your home, the profits from the sale will be used to repay the Swing Loan.
Our Swing Loan product allows you to make interest-only payments. This means you do not have to pay on the principal of the loan because the principal will be paid off when your home sells.
Swing or Bridge Loans are meant as short-term financing solutions. Most are designed to last no more than six months. Some are paid off in as little as a few weeks. Because the repayment of these loans depends on whether or not you sell your home, interest rates for Swing Loans may be higher than a regular home loan. There are many variables involved, so speak with a member of our Community Banking team about the options available for your situation.
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Who qualifies for a Swing Loan?
Just about any homeowner can apply for a Swing Loan. To qualify, you need to have at least some equity in your current home. Your current home will be held as collateral until the Swing Loan is satisfied.
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What are the benefits of a Swing/Bridge Loan from Traditions Mortgage, A Division of ACNB Bank?
There are many advantages to applying for a Swing Loan with Traditions Mortgage. They include:
- Fast approval: You can generally complete the loan approval process in less time than other loans. This allows you to act more quickly in making an offer on the new home you want.
- Avoiding an early payoff penalty: You can pay off your Swing Loan at any time without facing an early payment penalty, which is helpful since you may only need the loan for a few weeks or even days.
- Interest-only payments: By paying only the interest on the loan, you have more funds available so you don’t have to utilize your savings to bridge the gap between selling and purchasing.
A Swing Loan lets you move forward in the home-buying process even as your current home stays on the market. You can feel confident you have the means to finance your new house.
Buy a Home
Found the perfect home for your family? Let us help you buy it.
- Great for first time buyers, or experienced home buyers!
- Fixed or Variable rates available.
- We even have special offers for mortgages to save you even more money.
Refinance a Home
Want to save money and get a better interest rate? Of course you do.
- Consolidate your debt.
- Little or no out of pocket costs.
- Access equity in your home for improvements.
Build a home
We can help you build the house of your dreams.
- Buy land and build with one loan.
- One-time closing process.
- Up to 30 year terms available.
Mortgage Loans for Medical Professionals
Special home buyer program for medical professionals in their field for less than 10 years.
- Special home buyer program for new doctors, dentists, nurse practitioners, physicians assistants and more.
- Up to 100% loan-to-value (LTV).
- No monthly private mortgage insurance and as little as 3% down.
Save $200 on mortgage closing costs
Did you know that you can save $200 on closing costs?
- If you have an Advantage Rewards checking account or an Advantage Rewards Plus checking account, you're eligible to receive $200 off closing costs for residential mortgages and home equity consumer loans and lines on a primary residence.
Community Heroes Program
- Helping local heroes like teachers, fire fighters, police officers, nurses, EMTs, paramedics, and active or former military personnel purchase a home.
- Reduced monthly mortgage insurance and as little as 1% down.
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