Your new home shouldn’t wait – bridge the timing with ease
Bridge loans allow for:
- Interest-only payments during the term of the bridge loan
- Quick, local decisions
- Access to rates and applications online
How a bridge loan works
If you want to buy a new home before your current one sells, a bridge loan can cover the gap. The bridge loan pays off the mortgage on your existing home and is secured by that home until it sells. Once the sale is complete, those proceeds are used to pay off the bridge loan, which is then replaced with a traditional mortgage on your new home.
Depending on your available equity, the bridge loan can also cover your down payment and closing costs – with borrowing up to 90% of your home’s value.
Apply online or meet with a Kentucky or Indiana mortgage lender at any one of our convenient locations in Lexington, Henderson, and Cynthiana, Kentucky or Evansville, Indiana.
Bridge Loans FAQs
How does a bridge loan differ from a conventional mortgage loan?
The difference between a bridge loan and a conventional mortgage loan is that a bridge loan is a short-term or temporary loan backed by the value of your existing home that you are listing for sale. The specific goal of a bridge loan is to help you transition from home-to-home without the monetary stress of getting your current home sold before closing on the purchase of your new home.
When should you apply for a bridge loan?
If you are considering selling your existing home (or primary residence) to move to a new home, a bridge loan could be an option for you and your family.
How do I qualify for a bridge loan?
Talk to a loan officer today to learn more about bridge loan qualifications. Let us help you determine if this is a good option for you.
What are the pros and cons of a bridge loan for homebuyers?
- Allows flexibility if you want to move out of your existing home before listing it for sale.
- You can make an offer on a new home without the sale of your current home being a contingency.
- Allows you to make interest only payments during the transition period.
- The Bridge loan term is temporary and must be paid off and converted to another type of loan at maturity.
- Interest only payments means you will not be paying down on the principal during the transition period.
- You will be responsible for paying your taxes and home insurance for your existing home. With a Bridge loan, those items are not escrowed into your payment like they are with a traditional mortgage loan.
Why Choose Field & Main for Your Bridge Loan?
We’re more than a bank. We’re relationship-driven lending experts. To learn more about the relationships we build with homeowners through our lending services, get in touch with a mortgage lending expert today. Contact us online or talk with a mortgage lender at one of our convenient locations in Lexington, Henderson, or Cynthiana, Kentucky and Evansville, Indiana.
Apply in as Little as 20 Minutes
Get started on your mortgage or refinancing by filling out the online mortgage application. If you have any questions, call us at 1-888-831-1500 for assistance.