Moving from one home to the next.
You found the next house, but you haven't sold the one you live in. Bridge financing may help with the timing in between. Theresa can help you work out whether it fits your situation.
Short-term financing between two homes
A bridge loan, sometimes called a swing loan, is generally a short-term loan used to cover the gap between two real estate transactions. In a buy-before-you-sell situation, it's typically tied to the equity in your current home.
Depending on the program, it may let qualified homeowners reach some of that equity before the current home sells and put it toward the next purchase. Once the existing home sells, the proceeds are generally used to pay off the bridge loan according to its terms.
Because it's meant to be temporary, a bridge loan looks very different from a traditional long-term mortgage. And it isn't automatically the right answer for everyone.
Your equity is in the house, not the bank
Many homeowners can afford the next home on paper. The money they planned to use is simply still inside the current one. That usually leaves a few choices.
Sell first
And hope the right next home shows up in time.
Make a contingent offer
An offer that depends on selling your current home first.
Carry both homes
Hold both properties at once until the first one sells.
Bridge financing
Reach some of your equity before the sale, if you qualify for a program that fits.
The basic shape of a bridge
Programs vary, but bridge financing tends to follow a pattern like this.
- Look at your current equityThe estimated value of your home, minus the mortgage and any other liens already on it.
- See what may be availableEach bridge program has its own loan-to-value, loan amount, property and qualification requirements, so gross equity isn't the same as what you can borrow.
- Put eligible funds toward the next homeDepending on the program and structure, the funds may help with the new purchase.
- Buy the next homeYou move forward with the new mortgage rather than necessarily waiting on the sale.
- Sell the current homeThe bridge loan and other liens are typically paid off from the sale according to their terms. The remaining proceeds are yours.
What shapes the answer
Bridge scenarios are a numbers exercise and a timing exercise at the same time. Theresa looks at all of it before suggesting a direction.
- Your home's value and what you owe. Together these set your gross equity.
- Program limits. Lenders leave a share of equity in the property, so not all of it is available.
- Costs and fees. Closing costs and fees are part of the picture.
- Your qualifying income and the new price. Both loans have to make sense together.
- Your exit strategy. What happens if the sale takes longer than you expect.
Planning your move with Theresa
Share both homes
The home you own, the home you want, and your timeline.
Run the real numbers
What's actually available, not just an equity estimate.
Compare the paths
Bridge financing alongside your other options, with the exit planned.
Move forward
She guides you through both transactions to closing.
Frequently asked
Can I buy a house before selling my current home?
Potentially. It's the most common reason homeowners ask about bridge financing. Whether it works for you depends on the program, your home's value, existing liens and other requirements, so Theresa would rather run your actual numbers than assume.
Is a bridge loan the same as a HELOC?
No. A bridge loan is short-term financing structured around getting you from one home to the next, and it's generally paid off when your current home sells. A HELOC is a revolving line of credit secured by your home. The right choice depends on your timeline and your plans.
Can I use bridge funds toward the down payment on my next home?
Potentially. Whether those funds count as an eligible source of money depends on the requirements of the bridge program and of the mortgage you're using for the new home.
How much equity do I need?
It varies by program. Lenders have to leave enough equity in the property based on that program's limits, and fees and closing costs factor in too. Theresa will look at your home's value, your existing liens and your income before giving you a number.
What if my current home takes longer to sell than expected?
That's exactly why the exit strategy gets discussed up front. Each program has its own repayment terms, so you'll talk through your expected sale timeline, and what happens if it stretches, before you commit to anything.
Ask the Huntress
Send Theresa the details on the home you own and the home you want, and she'll map out what may actually be available and how the move could come together.
(913) 705-0049