Home Loans
Bridge Loans
You found the right home but have not sold yours yet. A bridge loan lets you move forward without waiting. It uses the equity in your current home to fund the purchase of your next one so you can buy on your timeline, not the market’s.
Buy First.
Sell When You Are Ready
No Rush
To Sell
Strong
Offer Position
What Is a Bridge Loan?
A bridge loan is a short-term financing solution that uses the equity in your current home to fund the purchase of your next one. It bridges the gap between buying a new home and selling the one you already own. Instead of making a contingent offer that sellers often reject, or rushing to sell at a lower price just to free up cash, a bridge loan lets you move forward on your terms.
Bridge loans are typically interest-only and designed to be paid off once your current home sells. The timeline is usually 6 to 12 months, though some programs allow longer. They are not a long-term financing solution but a strategic tool to help you navigate one of the most stressful parts of the move-up process without sacrificing your position in the market.
What it does
Uses the equity in your current home to fund the purchase of your next one, so you can move forward without waiting for your sale to close first.
How it works
Bridge loans are typically interest-only and designed to be paid off once your current home sells, usually within 6 to 12 months.
Ready to Get Started?
Let's Talk Through Your Move-Up Plan
No pressure, no runaround. Todd and Aaron will look at your equity position and tell you exactly what a bridge loan could make possible.
Key Benefits
Buy Without Contingencies
Make a clean, non-contingent offer on your next home. Sellers take you seriously when you are not waiting on your current home to sell.
Sell on Your Terms
No need to accept a lowball offer just because you need to close fast. Take the time to market your home properly and get what it is worth.
Move Once, Not Twice
Skip the temporary rental in between. A bridge loan can let you move directly from your old home into your new one without a gap in the middle.
Use Equity You Already Have
Your current home is likely worth more than when you bought it. A bridge loan puts that built-up equity to work before the sale closes.
Who Is It For?
A bridge loan is the right tool when you have found a home you want to buy but your current home has not sold yet and you do not want to make a contingent offer or miss the opportunity. It works best for homeowners with meaningful equity in their current property and a clear plan to sell.
It is a strong fit for:
- Move-up buyers who need to buy before their current home sells
- Homeowners who found the right property and do not want to lose it to another buyer
- Buyers in competitive markets where contingent offers routinely get passed over
- People who want to avoid a temporary rental between selling and buying
- Homeowners with significant equity who want to put it to work before closing
- Military families facing a PCS move with a tight timeline
Good to Know
Bridge loans are short-term by design. They typically carry higher rates than a standard mortgage because of the temporary nature and the fact that you are carrying two properties at once. The cost is real, but for many buyers the value of securing the right home outweighs it.
Todd and Aaron will run the full cost comparison so you can make a clear-eyed decision before committing.
The Alternative
Lose the
House.
Without a bridge loan, most buyers in this situation either make a contingent offer that sellers reject or wait for their home to sell and lose the property they wanted. A bridge loan removes both of those outcomes from the equation.
How the Process Works
Review Your Equity Position
Todd and Aaron look at your current home value, your existing mortgage balance, and how much usable equity you have available to fund the bridge. This tells you right away how much you can work with.
Structure the Bridge and New Purchase Together
We structure both the bridge loan and your new home financing at the same time so everything works together cleanly. You know exactly what your payments look like during the overlap period.
Make Your Offer and Close on the New Home
With bridge financing in place, you can make a clean non-contingent offer. Once accepted, we close on the new home using the bridge funds for your down payment and closing costs.
Sell Your Current Home
Now that you are not under pressure to sell quickly, you can list your home properly, let the market work, and get a price you are happy with.
Pay Off the Bridge with Sale Proceeds
When your current home closes, you use the proceeds to pay off the bridge loan. Done. You are in your new home with one clean mortgage going forward.
Typical Bridge Term
6-12 Mo
Short-Term by Design
Most bridge loans are structured as interest-only for 6 to 12 months. Some programs allow up to 24 months. The loan is designed to be paid off the moment your current home sells.
Worth Knowing
You Will Carry Two Payments.
During the overlap period between buying and selling, you will have two mortgage obligations. Todd and Aaron will make sure you are comfortable with that number before you commit to anything.
Common Questions
How much can I borrow with a bridge loan?
The amount depends on the equity in your current home and the lender’s combined loan-to-value limits, which typically cap at 80% of your home’s value across all liens. If your home is worth $500,000 and you owe $200,000, you may have access to up to $200,000 in bridge financing. Todd and Aaron will run the exact calculation for your situation.
What happens if my current home does not sell within the bridge term?
Most bridge loan programs allow for an extension if your home takes longer than expected to sell. That said, it is important to go in with a realistic plan for selling your current home. Todd and Aaron will help you think through the timeline and make sure the bridge term is appropriate for your market conditions before you commit.
Do I have to make payments on the bridge loan while I own both homes?
It depends on the program. Some bridge loans are structured as interest-only during the term, meaning you make smaller monthly interest payments while carrying both properties. Others allow for deferred payments where interest accrues and is paid off when the bridge is retired. Todd and Aaron will structure the option that fits your cash flow during the overlap period.
Can I get a bridge loan if I have not listed my current home yet?
Yes. You do not need to have your current home on the market to qualify for a bridge loan. You do need to have a clear plan to sell, and lenders will look at the equity position and marketability of your current property as part of the approval. The bridge is designed to give you time to sell on your terms, not to avoid selling altogether.
Are bridge loans expensive?
Bridge loans typically carry higher rates than standard mortgages because of the short-term nature and the risk of carrying two properties. The cost is real and worth understanding clearly before you proceed. For many buyers, however, the value of securing the right home or avoiding a costly temporary rental outweighs the interest expense. Todd and Aaron will give you the full cost breakdown so you can decide with clear numbers in front of you.
Still Have Questions?
Just Ask. We Pick Up the Phone.
No automated phone trees, no waiting on hold. You get Todd or Aaron directly.
Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710