Bridge Loan

Transition to Your New Home

The process of moving to a new home can be both exciting and stressful. Between selling your current place, purchasing a new one, and eventually hauling your possessions from one to the other - there's a lot to consider. That's where a Bridge Loan from Plains Commerce Bank comes in handy.

A Bridge Loan is a type of mortgage loan that lets you borrow against the equity of your current home to cover the down payment of a new home you'd like to purchase, bridging the "gap" between them.

Benefits of Bridge Loans

The great thing is, you don't need to sell your current home before taking out a Bridge Loan, which benefits you as a buyer and a seller:

As a buyer, the Bridge Loan gets you the necessary funds to close on your new home faster and with fewer contingencies.

As a seller, the Bridge Loan affords you more time to prepare your current home for the market, ensuring you sell for all its worth.

And last but certainly not least, the Bridge Loan reduces the stress of moving for you and your family, allowing for a more gradual transition to your new place.

If you're considering selling your current home to purchase a new one, and you've built up some equity over the years, a Bridge Loan could help significantly simplify your next move.

Please contact our mortgage team to learn more, or start your application below.

Apply Now

Program Highlights

6-month balloon with interest-only payments*

85% maximum loan-to-value (LTV)

Competitive rates calculated by credit score

Origination fee: $1000 (or 1% if loan is less than $100,000)

Bridge the Gap with Plains Commerce

Our Bridge Loan program exists to offer you a smoother transition to your new life in your new home. Our mortgage team is ready to help when you're ready to bridge the gap.

To contact us, Get in Touch

Loan Logistics

Loan will be originated by a Plains Commerce Bank in-house mortgage banker
Credit score of 680 or above
Max debt-to-income (DTI) ratio of 45%; must include payments for departing residence, bridge loan, and new residence
Desktop appraisal with an exterior inspection will be obtained to value the subject property**
Only requires a title search (unless bridge loan will be in a 1st lien position) closed with a mobile notary
Purchase file loan type must be conventional*
Rate locks valid 30 days. Rates will not be extended or
re-locked. Expired rate will be determined by current market rate at the time of the final closing date.
Bridge loan must be attached to borrower’s current primary
residence and must be either a single-family home, a condo, or a townhome. No other property types are allowed.

Exceptions may be approved on a case-by-case basis - contact your Mortgage Banker to inquire on a specific scenario.
Payment Example (80% LTV): A loan of $100,000 for 6 months with no downpayment at a simple interest rate of 4.50% would yield an interest-only payment amount of $382.19 per month and one final payment of $100,382.19 with an annual percentage rate (APR) of 5.575%. Based on a CLTV less than or equal to 80%. The payments do not include amounts for taxes and insurance and the actual payment obligation will be greater.

Payment Example (90% LTV): A loan of $100,000 for 6 months with no downpayment at a simple interest rate of 5.50% would yield an interest-only payment amount of $467.12 per month and one final payment of $100,467.12 with an annual percentage rate (APR) of 6.587%. Based on a CLTV less than or equal to 90%. The payments do not include amounts for taxes and insurance and the actual payment obligation will be greater.

*Bridge loans are not available in all states. Other restrictions and limitations may apply and rates are subject to change. Rates, terms and conditions along with underwriting are subject to change.

**Renewal must be completed prior to maturity.

**Maximum bridge loan amount is $500,000. Bridge loans of $400,000 or greater will require a full 3rd party appraisal at borrower’s expense – appraisal deposit to be collected from borrower prior to ordering the appraisal. In such cases, please allow for additional time to complete the bridge loan origination process.

All credit and loan programs are subject to credit approval.