Bridge Loans
Short-term financing to bridge the gap between buying your new home and selling your current one
What is a Bridge Loan?
A bridge loan is a short-term financing solution that helps homeowners purchase a new property before selling their current home. This type of loan "bridges" the gap between the purchase of a new home and the sale of an existing one, providing the funds needed for a down payment and closing costs on the new property.
Bridge loans typically last 6 to 12 months and are secured by your current home. Once your existing home sells, you use the proceeds to pay off the bridge loan. This allows you to make a strong, non-contingent offer on your new home without waiting for your current property to sell.
Bridge Loan Requirements
Equity Requirements
Typically need 20-30% equity in current home
Combined loan-to-value (CLTV) usually capped at 80%
Current home must be in good condition
Loan Terms
Loan term: 6 to 12 months
Interest rates typically higher than traditional mortgages
Interest-only or deferred payment options available
Financial Qualifications
Credit score typically 680 or higher
Ability to qualify for both mortgages simultaneously
Sufficient cash reserves (6-12 months)
Documentation
Current home appraisal
Purchase contract for new home
Income verification and asset documentation
Why Choose a Bridge Loan?
We match you with the right investor program and help you close fast so you can scale your portfolio.
Buy Before You Sell
Purchase your new home without waiting for your current home to sell, avoiding temporary housing.
Competitive Offers
Make non-contingent offers that are more attractive to sellers in competitive markets.
Flexible Timing
Move on your schedule without the pressure of coordinating two closings on the same day.
Access Equity
Tap into your current home's equity for down payment and closing costs on your new home.
No Double Payments
Many bridge loans offer interest-only payments or deferred payments until your home sells.
Avoid Contingencies
Eliminate home sale contingencies that can make your offer less competitive.
How Bridge Loans Work
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Breakdown of Bridge Loan Costs: Rates, Fees & Charges
Interest Rates
Bridge loan interest rates are typically 2-3% higher than conventional mortgage rates due to the short-term nature and higher risk. Rates vary based on your credit score, loan-to-value ratio, and lender.
Current Range: 8.5% - 11.5% APR
Origination Fees
Lenders typically charge 1-2% of the loan amount as an origination fee. Some lenders may also charge processing fees, underwriting fees, and administrative costs.
Typical Range: 1.5% - 3% of loan amount
Closing Costs
Like traditional mortgages, bridge loans require closing costs including appraisal, title insurance, and recording fees. These costs are typically lower than conventional loans due to the shorter term.
Typical Range: $2,000 - $5,000
Alternatives to Bridge Loans
Home Sale Contingency
Make your new home purchase contingent on selling your current home. Less expensive but may make your offer less competitive.
Best for: Buyers in less competitive markets
Home Equity Line of Credit (HELOC)
Tap your current home's equity for down payment funds. Lower rates than bridge loans but requires carrying two mortgages.
Best for: Borrowers with significant equity
80-10-10 Piggyback Loan
Use a second mortgage for down payment on new home. Requires qualifying for two loans simultaneously.Sufficient cash
Best for: Strong credit borrowers
Rent Back Agreement
Sell your current home first and rent it back from the buyer until you close on your new home.
Best for: Flexible buyers and cooperative sellers
Ready to Explore Bridge Loan Options?
Contact us today to discuss whether a bridge loan is right for your situation. Our team has access to 260+ lenders to find you the best terms and rates.
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This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.
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NMLS #2018327
Address: 7840 S Sorrell Ln Gilbert 85298 AZ
Phone: 602-705-7983
Email: [email protected]
Disclaimer: All loans subject to qualifying factors. Not all applicants will qualify.
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