A swing loan is a mortgage vehicle that the bank offers to assist borrowers in the transition of changing homes. In this type of loan product, two homes are taken as collateral (The residence being purchased and the residence that they are moving from, which is now for sale). The customer must possess the income necessary to support the total debt amount. The combined collateral must also support the loan to value guidelines of the bank. The product is generally used when the customer has not been able to sell their current home, yet they are purchasing a new one and need the equity in their original home to support the down payment. Please see one of our mortgage specialists for more details.