Trading up to a larger home or down to a smaller one involves more than simply buying a first home. Two home sales need to take place to accomplish your move: the sale of your current home and the purchase of a new one. Ideally you'd like to coordinate the two transactions so that you don't have to move twice. One way to accomplish this is with a swing loan.
A swing loan enables you to borrow a portion of the equity in your current home to use for a down payment on a new home. This is a simple, fast, short term loan. Rates and terms are customized to the borrower's current situation and can even involve several properties for collateral. This is definitely an area where the creativity of Heartland Credit Union mortgage professionals can help.
- Maximum Loan-to-Value ratio of 80%
- Simple interest only
- Up to a 6-month term
- Your bridge loan and your home loan stay with us
Swing loans are available to those who have made application for a mortgage loan to purchase a new home. The proceeds from the swing loan are usually used solely for the down payment and improvements on the new home purchase.