Are you thinking that it's time to build a new home?
Do you want to renovate your current home?
Is there time between your purchase closing and your sale?
If so, you may consider what many other homeowners have found beneficial: short-term bridge financing options.
Unlock your home-buying power with a home construction loan or bridge loan from CNB St. Louis Bank. Our competitively priced loans and financing options can help put your mind at ease during oftentimes stressful transitions.
Key Features Include:
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Competitive variable rate for the term of construction
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Easily converts to any of the permanent mortgage programs offered by CNB
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The amount of credit can be up to 80% of the value of the property
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Reduced rate for automatic debit of payments from a CNB deposit account
To learn more, contact our construction and bridge loan specialist:
Inquire Now
What is a Bridge Loan?
A bridge loan (swing loan) is a short-term loan designed to help you move forward when timing doesn't always line up perfectly. Whether you're purchasing a new property before your old home sells or navigating a business transition, a bridge loan can provide temporary access to working capital. This way, you don't have to put your plans on hold.
At its core, bridge financing is an interim financing option designed to clear the way during moments when decisions need to be made quickly.
How Do Bridge Loans Work?
Bridge financing covers the gap between today's needs and tomorrow's funding.
For example, you may use a bridge loan to move ahead with a purchase while you're waiting on proceeds from an existing home's sale or other long-term financing solutions. Once that next step is complete, homeowners typically use those funds to repay the bridge loan.
Because every situation is different, bridge loan terms and approval will depend on factors like your:
- Credit history/credit score
- Debt-to-income ratio
- Available collateral
- Individual repayment plan
At CNB St. Louis Bank, we believe these moments shouldn't feel confusing. Our team takes the time to walk you through your options, so you understand exactly how everything fits together.
What are the Benefits of a Bridge Loan?
Bridge financing can help bring momentum to time-sensitive decisions.
Potential benefits of bridge loans include:
- Access to upfront funds when timing matters most
- Flexibility to move forward without waiting on other transactions
- The ability to act on opportunities with more confidence
For many people, the biggest advantage to this short-term financing solution isn't just the financing; it's having the ability to take the next step without unnecessary delays.
What are the Disadvantages of a Bridge Loan?
Bridge loans can be helpful, but they're not the right fit for every situation.
Possible cons of bridge loans include:
- Short-term nature, which requires a clear repayment plan
- Qualification and collateral requirements, which vary by borrower
- Timing risk, especially if your expected source of repayment is delayed
- Added financial responsibility during the loan period
How Long Does it Take to Get Approved for a Bridge Loan?
Approval timelines can vary depending on the exact situation and the details of the transaction.
In some cases, bridge financing may move more quickly that traditional long-term loans. However, approval is not always guaranteed, and you should be prepared to provide financial information and a clear repayment strategy.
Working with a local lender who understands your goals can help make the process more straightforward.
How Long Does Bridge Financing Typically Last?
Bridge financing is a temporary financing solution. The loan typically remains in place until a specific milestone is reached, such as selling a property or securing permanent financing. The exact timeline will vary based on the exact situation and the loan structure, though.
At CNB St. Louis Bank, we know milestone moments often come with pressure. That's why we focus on helping you understand your options and timing so that you can move forward with a plan, not guesswork.
Let's Talk
Disclaimers: Business banking products and services are subject to approval. Terms, conditions, and fees may change. Please contact a CNB St. Louis Bank representative for current account details and eligibility requirements.