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A bridge loan allows a borrower to use the equity in their current home as the down payment for new owner-occupied home purchase. Third Federal offers a bridge Loan with a one-year term with no principal or interest payments for up to 12 months. Borrowers with sufficient equity in their home may also elect to pay off their current mortgage loan with a portion of the funds from the bridge loan which allows borrowers to eliminate their current mortgage payment, so you only have one payment while you are selling your home. Approval for this product is contingent on Third Federal financing the new home.

With this Bridge Loan, Third Federal will lend a maximum of 80% of the value of your current home, minus the existing first mortgage. If there are any existing second mortgages or equity lines of credit, these loans can be paid off through the proceeds of the Bridge Loan. The maximum loan amount is $300,000.

With Third Federal's Bridge Loan, no payments are required until either your home sells or the loan reaches the one year maturity. At this time, your payoff will consist of the principal balance plus accrued interest (Interest is calculated on a daily basis). However, you may make payments on this loan at any time.

Third Federal's Bridge Loan offers NO prepayment penalty and NO appraisal fees. There is a $595 closing cost for the bridge loan, which will be funded through the bridge loan.  Customers are responsible for doc stamps and intangible taxes if required by the state.

Bridge loans are available in all purchase markets in FL, GA, IL, IN, KY, MD, MI, MO, NC, NJ, OH, PA, SC, TN, and VA.

Borrowers will not be able to apply for the bridge loan online at Third Federal.  However, on the online purchase mortgage application, borrowers will be asked if they are interested in a bridge loan.  If the answer is yes, a note will be added in the additional comments section so loan administrators are aware of the interest and can talk to borrowers about the loan and take the application over the phone.