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Bridge loans
Buy the next house before you've sold this one, so that your offer isn't carrying a contingency that sellers are free to pass over.
Last reviewed 22 August 2026 · Mark Ruhl, NMLS #105591
The problem this solves
You own a house with real equity in it, and you've found the next one. But your down payment is locked up inside the current house, and an offer contingent on selling it is an offer that most sellers will simply pass over.
A bridge loan borrows against your current home's equity so you can buy first and sell after. You move once instead of twice, you're not camping somewhere temporary in between, and your offer gets to compete on its merits.
How it actually works
The lender advances funds secured by your existing home, often up to 80% of the combined value across both properties, and you use that money as the down payment on the new one. Then when the old house sells, the proceeds pay off the bridge. Terms are short, commonly six to twelve months, and they're typically interest-only.
What it costs, and the honest risk
Bridge financing prices above a standard mortgage, and there are closing costs on a loan you'll only hold for months rather than years. What that premium buys you is a stronger offer and a single move. So whether it's worth paying depends on how much a non-contingent offer is worth in your particular situation, which in a competitive segment is quite a lot, and in a slow one is considerably less.
If the old house doesn't sell, you're carrying two mortgages plus the bridge. That's the whole risk, and it isn't theoretical. Before I write one of these I want to see a realistic pricing analysis on your current home rather than an optimistic one, and I'd rather talk you out of a bridge than watch that happen to you.
Alternatives worth comparing first
- A HELOC on your current home, opened before you list it. Often cheaper than a bridge, but it has to be in place before the house goes on the market, because lenders won't open one on a listed property.
- A contingent offer, if the market is soft enough that sellers will take one.
- Sell first and rent briefly. The cheapest option, and the most annoying one.
- A buy-before-you-sell program from an iBuyer. Convenient, and you pay for the convenience.
I'll run all of these with you. Frequently the HELOC wins, and nobody had even mentioned it to you.
Common questions
How much can I borrow?
It depends on the equity in your current home and on the combined loan-to-value the lender will allow across both properties. Send me both numbers and I'll tell you.
How fast can it close?
Faster than a purchase mortgage, but not instantly. Start the conversation before you're writing offers rather than after.
What if I get an offer on my house first?
Then you may not need the bridge at all, which is a good outcome. Nothing is wasted by having the conversation early.
Is this the right one for you?
Tell me the situation in plain language and I'll tell you which program actually fits, including the times when the answer turns out to be a different one than the page you're reading.