Bridge loans are a form of short-term financing used to pay off a homeowner’s current mortgage prior to the sale of their home. The bridge-to-construction loan frees up the home’s equity for use toward the construction costs on the homeowner’s new home. When the current home sells, the proceeds are used to pay off the bridge loan.

Terms vary from lender to lender, but most bridge loans have terms of six months or less. Their purpose is to bridge a financing gap, not to provide long-term use of the money. Leaders bridge-to-construction loan starts with a nine month term and can be extended for another six months if construction takes longer. 

People choose bridge loans for a variety of reasons. The most common reasons are as follows:

• Your dream home comes on the market and you don’t want to miss out on buying it.
• You have equity in your current home but don’t have enough cash for a down payment on your next home.
• You fear that your purchase offer won’t be accepted with a sale contingency for your current home.
• You need to relocate for a new job.
• Your family has outgrown (or will soon outgrow) your current home.
• You don’t have a temporary housing solution between homes.

What all these things have in common is the need for help transitioning into a new home. Leaders Credit Union understands that life doesn’t always play out according to plan – and we’re here to help.

One of the features of Leaders’ bridge loans is that they don’t include a penalty for early repayment. If you sell your current home more quickly than anticipated, you’ll save on interest by repaying your bridge loan early.

Leaders Credit Union offers bridge loans with interest-only payments. Our goal is to keep your monthly payments low, so that you can afford your new mortgage and have a stress-free transition.

Yes. We strive to make the loan application process as simple as possible. You can start the application process by clicking here.