CLEVELAND--(BUSINESS WIRE)--As the home purchase market continues to heat up in many US markets, repeat buyers are increasingly looking to a bridge loan as a way to manage the logistics and costs of buying a home before selling their current one.
Third Federal Savings and Loan, a major residential mortgage lender, reports bridge loans volume increased 137% year over year. To address the increased demand, Third Federal has introduced a new a bridge loan to ease the homeowner’s burden of a temporary move if their home sells quickly, and the financial burden of carrying two mortgages. Under the terms of the Third Federal Bridge Loan, a borrower’s existing home payment is deferred so they only have one payment while they sell their current home.
Buying a home before selling was common practice among homeowners before the mortgage crisis. But today, with the housing market rebounding, homeowners are now faced with the dilemma of their home selling too quickly, forcing them into temporary rental housing or other short-term accommodations.
The Third Federal Bridge Loan enables qualified homebuyers to purchase before they sell by providing them with funds for a down payment, allowing them to pay off their existing mortgage so they only have one mortgage payment on their new house. Third Federal defers loan payments, further helping homebuyers qualify for their new mortgage payment with less income.
Other Third Federal Bridge Loan features include:
- Up to 12 months to sell old house
- No application, cancellation fee, or prepayment fee
- Currently 1.99% APR (principal and interest payments deferred)
- Borrow up to 80% of the property’s appraisal value
The product is available in states where Third Federal offers purchase mortgage loans, including: Ohio, Florida, North Carolina, Pennsylvania, Maryland, New Jersey, Virginia, Kentucky, Illinois, Indiana, Georgia, Missouri, and Tennessee.
The Third Federal Bridge Loan is available for single family homes, planned unit developments, and condominiums that are primary residences. Borrowers must finance their new home through Third Federal.
“With many markets facing low housing inventory, borrowers who are interested in buying a home need to act fast to have their bid accepted,” said Third Federal Chairman and CEO Marc A. Stefanski. “By taking advantage of our bridge loan, borrowers who already own a home can eliminate a barrier to buying their next home and better compete in low inventory markets.”
Third Federal Savings and Loan Association is a leading provider of savings and mortgage products, and operates under the values of love, trust, respect, a commitment to excellence and fun. Founded in Cleveland in 1938 as a mutual association by Ben and Gerome Stefanski, Third Federal’s mission is to help people achieve the dream of home ownership and financial security. It became part of a public company in 2007 and celebrated its 75th anniversary in 2013. Third Federal, which lends in 21 states and the District of Columbia, is dedicated to serving consumers with competitive rates and outstanding service. Third Federal, an equal housing lender, has 21 full service branches in Northeast Ohio, eight lending offices in Central and Southern Ohio, and 17 full service branches throughout Florida. As of March 31, 2017, the Company’s assets totaled $13.4 billion. For more information, visit thirdfederal.com.