Bridge Loan
A bridge loan from NASB can help with the short-term financing of your new home while you are selling your current one.
Use your current home's equity to pay for your new one.
Sometimes you find a new home to purchase before your current one sells. This is when a bridge loan, sometimes called a "swing loan," comes in handy when you do your home purchase with NASB. This short-term loan allows you to tap into the equity you've built up to have cash now for a down payment, moving expenses, or getting your home ready to sell.
Bridge Loan Guidelines and Requirements
To qualify for a bridge loan, there are certain requirements and guidelines to consider:
- Only available with an approved NASB purchase transaction
- Must be used in conjunction with a primary or secondary home purchase
- Full appraisal required
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Minimum loan amount of $175,000 required to apply*
Not available in Texas
Bridge Loan FAQs
What is a bridge loan?
A bridge loan allows you to access the equity in the home you currently live in, so you can make an offer on a new house with needing a sale contingency. Here's a blog that explains more about bridge loans.
How do bridge loans work?
The easiest way to think of how a bridge loan works is to provide you with the cash to pay off what you still owe on your current mortgage, plus a little more for a down payment on the new home. The loans are generally short-term.
What are the pros of a bridge loan?
- It makes cash available, so you get the home you want without waiting to sell or needing a sale contingency.
- It puts odds in your favor in a competitive market.
- If you don’t have cash for a down payment.
- Interest-only payments until your home is sold.
What are the cons of a bridge loan?
- May have to pay for an appraisal, along with associated closing costs and fees.
- Might own two homes with two mortgage payments for a while.
- Higher interest rates than conventional loans.
- Lenders usually require at least 20% home equity.
How do I qualify for a bridge loan?
To qualify for a bridge loan, the loan amount must be at least $175,000, it must be used in conjunction with a primary or secondary home purchase, and a full appraisal is required.
What is the minimum required loan amount?
A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.
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