What it is
A bridge loan addresses a specific timing problem: the equity you need for the next purchase is locked inside the home you have not sold yet.
The loan draws on that equity, commonly up to 80% of the current home’s value less the existing mortgage, to fund the down payment on the new purchase. When the first home sells, the proceeds repay the bridge.
The trade-offs are the cost and the deadline. Short-term financing is priced higher than a 30-year purchase loan, and you carry both payments until the sale closes. In return, you can make an offer that does not depend on selling first.
Who it fits
- Move-up buyers in fast-moving markets
- Sellers who need current equity for the next down payment
- Buyers who cannot make an offer contingent on a sale
- Anyone facing tight purchase and sale timing
How it runs
- 1Equity AnalysisWe estimate the equity available in your current home after the existing mortgage.
- 2ApplyAn application focused on equity, the ability to carry both payments, and the exit plan.
- 3Close On The BridgeThe bridge funds before or at the same time as the new purchase.
- 4Sell & Pay OffWhen the first home sells, the bridge is repaid from the proceeds.
Questions
What does a bridge loan cost?
Bridge financing is short-term money and is priced above a standard purchase mortgage, with its own closing costs. Because the term is short, the total interest paid is usually smaller than the rate alone suggests, but the fees are real and should be counted.
How long do I have to sell?
Most bridge loans run 6 to 12 months. Some programs allow an extension, usually for a fee.
Can I carry two mortgages at once?
That is the point of the structure, and underwriting confirms you can carry both for the bridge period before approving it.
What if my home does not sell?
A bridge loan has a hard maturity date. If the sale takes longer, the options are an extension where the program allows one, or a refinance into a long-term loan. Settle the exit plan before taking the bridge, since you are carrying both payments until the first home sells.
Other programmes
Fixed Rate Mortgage
A predictable rate and payment for the life of the loan.
FHA Home Loan
Government-insured loans with 3.5% down and flexible credit guidelines.
VA Home Loan
$0 down, no monthly mortgage insurance, reusable entitlement.
Rehab Loan
Finance the purchase and renovation of a home in a single mortgage.
USDA Loan
0% down loans for eligible rural and suburban homes.
Jumbo Home Loan
Financing for homes priced above the conforming loan limit.