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Routing Number: 307070021
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Routing Number: 307070021

Swing Loan

 

What is a Swing Loan?

Buying a new home should be exciting—not stressful. With a Swing Loan, you don’t have to wait until your current home sells to move forward.

This flexible financing option lets you buy your next home first, using the equity in your existing property as collateral. That means no rushed sales, no double moves—just a smooth transition into your next chapter.

 

 

How It Helps You

Buying a home is a big decision, and we want to make it easier for you. Here’s how it works in your favor:

  • Buy First, Sell When You’re Ready – Find your dream home now and sell your current home within 12 month of purchasing your new home.
  • Skip the Temporary Move – Avoid the hassle and expense of moving twice.
  • Use Your Home’s Equity to Your Advantage – Get the financing you need without draining your savings.
  • Competitive Rates & Flexible Terms – More borrowing power, better options for you.
  • Less Pressure, More Time – Sell your home when the time is right, not when the market dictates.

Happy Couple with moving boxes

 

 

Why Choose a Swing Loan?

  • More Financial Flexibility – Secure a new home without the stress of selling first.
  • Keep More Money in Your Pocket – Avoid private mortgage insurance (PMI) by leveraging your existing assets.
  • Easier Loan Management – One loan, one monthly payment—less paperwork, more peace of mind.
  • Perfect for Growing Families, Empty Nesters, & Retirees – Move at your own pace without the pressure of a closing window.
 

 

Real-Life Example of a Swing Loan

Let’s explore a real-life scenario to see how Jordan used a swing loan when purchasing his new home. Instead of waiting to sell his current home, he uses the equity in his townhouse as collateral to secure financing for the new purchase.

This approach helps bridge the gap between selling and buying—let's dive into his situation and break down the numbers together. 

Meet Jordan.

Jordan owns a townhouse in Colorado Springs valued at $450,000 and has an outstanding mortgage balance of $150,000. Jordan is looking to purchase a new home priced at $600,000 but hasn't yet sold the current townhouse.

Instead of waiting to sell the townhouse, Jordan approached our credit union for a Swing Loan to facilitate the new home purchase.

Here's how the Swing Loan works:

  • New Home Purchase: Jordan secures a mortgage of $600,000 for the new home.
  • Collateral Arrangement: Both the new home and the existing townhouse are used as collateral for this mortgage.
  • Total Secured Debt: The combined collateral value is $1,050,000 (new home at $600,000 + townhouse at $450,000), securing the total debt of $750,000 (new mortgage of $600,000 + existing mortgage balance of $150,000).


Benefits for Jordan:

  • Immediate Purchase: Jordan can proceed with buying the new home without waiting to sell the current townhouse.
  • Potentially Better Terms: Using both properties as collateral may offer more favorable loan terms due to the increased security for the lender.
  • Flexibility: Jordan will sell the townhouse within the 12 month period. We will use the proceeds to pay down the mortgage and modify the final terms releasing the townhouse from the collateral agreement.
  • Convenience: Jordan doesn’t have to worry about a perfectly timed sale of the townhouse to avoid the hassle of moving two times.

Swing Loan

Important Consideration: If Jordan defaults on the loan, the credit union has the right to claim both the new home and the existing townhouse to recover the outstanding debt.

Check the Value of Your Home

Curious about the equity in your home? Use this tool to look up the value of any Colorado home! 

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Is a Swing Loan Right for You?

If you're looking to upgrade, downsize, or relocate, a Swing Loan can help you:

  • Take advantage of a great home-buying opportunity, even if your current home isn’t sold
  • Gives you up to 12 months to sell your current home—allowing you to move on your terms without the pressure of rushed sales or double moves.

Apply Now Schedule An Appointment

 

 
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Disclosures

Membership requirements apply. Restrictions and requirements apply. Program subject to change. Equal Housing Lender. Air Academy Federal Credit Union: NMLS #454287.