Bridge Loans
Buy your next home before your current one sells.
A bridge loan is short term financing secured by the equity in the home you are leaving. It gives you the cash for a down payment now so you can write an offer that is not contingent on selling first.
In a competitive market, removing the sale contingency is often what separates an accepted offer from a rejected one.
How the timing works
We size the bridge against the equity in your current home, you close on the new home, then the bridge is paid off from the proceeds when your existing home sells. In many cases you can move once instead of twice.
- Makes a non contingent offer possible
- You control the move out timeline
- Payoff comes from the sale proceeds
Qualifying considerations
Underwriting looks at the equity in the departing residence, the strength of your new loan, and your ability to carry both obligations for the bridge period if the sale takes longer than expected.
Costs to plan for
Bridge financing carries a higher rate than a standard mortgage and has its own origination and closing costs. Weigh that against the value of winning the home you want.
Documents to gather
We work the bridge and the new purchase loan at the same time.
- Mortgage statement and payoff for the departing home
- Listing agreement or market analysis
- Standard income and asset documentation for the new loan
- Purchase contract on the new home
Advantages
- Compete without a sale contingency
- Avoid a temporary rental or double move
- Sell your current home after you have moved out
- Flexible short term structure
Things to consider
- Higher rate and fees than permanent financing
- You carry two loans until the sale closes
- Requires meaningful equity in the departing home
- Timeline pressure if the sale is slow
Common questions
What if my house does not sell in time?
Most bridge programs allow an extension or a refinance into longer term financing. We plan the exit before you commit.
How much can I bridge?
It depends on the equity in your current home and the combined loan to value limits of the program.
Can I use a bridge for an investment property?
Often yes, though terms and pricing differ from an owner occupied bridge.
Program disclaimers
- * Higher interest rates apply
- ** For a 30-year, fixed-rate loan
- Program details are informational only and are not an offer for extension of credit or a commitment to lend. Terms are subject to change without notice.
Ready to explore Bridge Loans financing?
Start a conversation with a licensed loan officer, or begin your application whenever you're ready.