Equity in the departing property
How much is genuinely available after the existing loan and selling costs. That number sets what the bridge can be.
Buy the next one before you sell this one.
A bridge loan solves a timing problem. Your equity is real but it is locked in a property you have not sold yet, and the place you want is available now. The bridge covers the gap.
Where the gap comes from.
Selling first is cleaner financially and worse practically — you have your money but nowhere to live, and you are shopping under a deadline. Buying first is practical and harder to finance, because a lender sees two mortgages and asks how you carry both.
A bridge loan resolves that by borrowing against the equity in the property you are leaving, usually on a short interest-only term, with the sale proceeds paying it off. It also lets you make an offer that is not contingent on selling — which in a competitive market is frequently worth more than the loan costs.
- Buying a new home before the current one closes
- Making a non-contingent offer in a competitive market
- Covering a down payment locked in existing equity
- Investors moving between properties or exchanges
- Short gaps between a loan maturing and its replacement
The exit is a date, not a hope
A bridge loan is only as sound as the sale that repays it. Before arranging one we want to see a realistic view of what the departing property will sell for and how long that takes in the current market. If the sale is speculative, the bridge is speculative too.
What we look at.
Bridge underwriting is mostly about the property you are leaving, not the one you are buying.
The sale timeline
Condition, pricing, and realistic days on market. A property already listed and priced sensibly is a very different file from one not yet on the market.
Carrying capacity
What you are paying during the overlap — the bridge, the new loan, and the old one if it is still in place. It is a real cost for a real number of months.
Bridge, HELOC, or just qualifying for both?
A bridge is not always the answer. If you can qualify carrying both mortgages, that is usually cheaper and simpler. If you have substantial equity and time to arrange it, a HELOC on your current home taken out before you list can be a less expensive way to access the down payment — though most lenders will not open one on a property already listed for sale, so timing matters. We will look at all three before defaulting to the bridge.
What we will ask you for
What we will ask you for
- Address and current mortgage statement for the property you are selling
- Listing agreement or your pricing expectation, if not yet listed
- The purchase contract for the property you are buying, if you have one
- Income documentation for the new permanent loan
- Photo ID for every borrower
- Your expected timeline for the sale
Common questions.
How long is a bridge loan?
Short by design — months rather than years, sized around your expected sale. Ask what happens if the sale takes longer than planned, and what an extension costs, before you take the loan.
Do I make payments on it?
Usually interest-only, and on some programs interest can be held back from the loan proceeds so you are not paying out of pocket during the overlap. Which structure is available depends on the lender and your equity.
What if my house does not sell?
This is the risk. Options are to reduce the price, extend the bridge if the lender allows it, or refinance into longer-term financing — all of which cost money. It is why we push hard on realistic pricing before arranging one, and why we will sometimes advise selling first.
Is a bridge loan the same as hard money?
They overlap heavily but describe different things. Bridge names the purpose; hard money names how the loan qualifies — on the asset rather than on documented income. Many bridge loans are hard money loans. Some are not.
Can I use one on an investment property?
Yes, and it is common — moving between properties, covering an exchange deadline, or acquiring before disposing. Business-purpose bridge lending typically has more lender options than owner-occupied.
Tell us both properties.
The one you are leaving and the one you want. We will tell you whether a bridge is the cleanest route or whether something less expensive gets you there.