“I have to sell before I can buy.”
Your Equity Can Go First
A bridge loan or a HELOC on your current home can fund the next purchase before your sale closes.
Finding the right house before yours sells is stressful. A bridge loan uses the equity in your current home to fund the next purchase, so you can make a strong offer without waiting on a sale.
A bridge loan is short term financing that uses the equity in your current home to help you buy your next home before your current one sells. It usually lasts about 6 to 12 months and is paid off when your current home sells.
A bridge loan is set up against the home you own now. The lender looks at your home's value and what you owe, then lends against the equity so you can use it toward the down payment on your next home. When your current home sells, the sale pays off the bridge loan.
Because it's short term, rates and fees are usually higher than a regular mortgage. Some bridge loans have interest only payments or payments that are deferred until your home sells. You'll still need strong credit and enough income to show you can handle both homes for a while.
A bridge loan makes sense when you've found your next home and you can't wait for your current one to sell. It lets you make an offer without a home sale contingency, which can be the difference in winning the house.
It works best when your current home has plenty of equity and you're confident it will sell quickly. A well priced home in a good location is the safest setup, because the shorter the bridge, the less it costs.
If you haven't listed yet, a HELOC on your current home is often cheaper and does the same job. And if your home might sit for a while, think hard before using a bridge loan, because carrying two homes longer than planned is where it gets expensive.
“I have to sell before I can buy.”
A bridge loan or a HELOC on your current home can fund the next purchase before your sale closes.
“A contingent offer is just as strong.”
Offers that depend on your sale can lose to buyers who don’t need one. A bridge lets you skip the contingency.
“A bridge loan is free money until I sell.”
Rates and fees are usually higher, and if your home doesn’t sell in time, it can get expensive.
The order matters. Here’s how buying before you sell usually plays out.
The bridge loan is set up against the home you own now, based on its value and what you owe.
You use the bridge funds toward the down payment and make an offer that isn’t contingent on selling.
You move into the new home and sell the old one empty, often staged and easier to show.
When your old home sells, the proceeds pay off the bridge loan, usually within 6 to 12 months.
A bridge loan isn’t the only path. Here’s how it compares.
My take: if you know you’ll move in the next year, look at a HELOC on your current home before you list. Once the sign goes in the yard, that door usually closes.
Handle these before you shop for the next home.
A bridge loan works best when your current home sells quickly. Price it right from day one.
Know what it costs to carry both homes if the sale takes longer than you expect.
If you haven’t listed yet, a HELOC can be a cheaper way to do the same thing.
Know your options if the bridge term runs out before your home sells.
Here’s exactly what happens after you reach out.
Tell us the price range you’re shopping, your credit range, and how much you have saved. We start with a soft credit check, so your score isn’t touched.
Start My Pre-ApprovalSend your pay stubs, W2s, and bank statements. We compare your loan options side by side and send a letter with your max price to hand your Realtor.
Start My Pre-ApprovalOnce you’re under contract, we order the appraisal, work with title, and take your file through underwriting to closing day.
Start My Pre-Approval
A bridge loan is short term financing that uses the equity in your current home to help you buy your next home before your current one sells. It usually lasts about 6 to 12 months and is paid off when your current home sells.
Usually about 6 to 12 months. It's designed to cover the gap between buying your new home and selling your old one.
You may. Depending on how the bridge loan is set up, you could be carrying your current mortgage, the bridge loan, and your new mortgage until your old home sells. Many bridge loans have interest only or deferred payments to ease that.
Usually, yes. Rates and fees are typically higher than a standard mortgage because the loan is short term. You're paying for the ability to buy without a home sale contingency.
It depends on your current home's value, what you owe, and the lender's limits. Many lenders cap the combined loans at around 80% of your current home's value.
That's the main risk. If your home takes longer to sell than the bridge term, you may need an extension, which can cost more, or you may need to drop your price. Price your current home to sell before you lean on a bridge loan.
Sometimes. If you open a HELOC on your current home before you list it, you can use it toward your next down payment, often at a lower cost. Many lenders won't open a HELOC once your home is listed, so timing matters.
You can, but sellers often prefer offers that don't depend on you selling first. A bridge loan lets you make a stronger, non contingent offer.
Yes. Lenders usually want strong credit, solid equity, and enough income to show you can handle the payments while both homes are in play.
These are the options homeowners compare it with when buying before they sell.
Open a line on your current home before you list it.
Learn More EquityA fixed lump sum from your equity with a fixed payment.
Learn More RefinanceReplace your mortgage and take cash for the next down payment.
Learn More BuyCompare every purchase loan for the next home.
Learn More BuyGet pre-approved for the next home before you shop.
Learn More BuyKeeping the current home? Finance the next one as a second home.
Learn MoreFifteen minutes gets you a real number instead of a guess, and the soft credit check costs your score nothing.
Real Closings
Real families we have helped get from pre-approval to keys in hand.
Pick one and I'll match you to the right loan, the real numbers, and the next step. Takes about 60 seconds — no credit pull, no obligation.