Bridge Loans Explained: How to Buy Before You Sell
The problem it solves
You want to buy the next house, but your down payment is trapped in the current one. A sale-contingent offer is weak in a competitive market, and selling first means moving twice or renting in between. A bridge loan borrows against the equity you already have so you can close on the new home now.
How it typically works
- A lender appraises your current home and calculates available equity after your existing mortgage.
- They advance a portion of that equity — as a second lien on the current home, or sometimes a loan secured by both properties.
- You use the proceeds for the down payment (and possibly closing costs) on the new home.
- Your current home sells; the bridge loan is repaid from the proceeds at closing.
Terms of six to twelve months are common. Many are interest-only during the term; some defer payments until the sale.
What it costs
More than a 30-year mortgage — the lender is taking short-term risk on two properties. Expect a higher rate, an origination fee, and closing costs on the bridge itself. Because the loan is short, the total dollars are often less alarming than the rate suggests, but you should see the full cost in writing before you commit.
Who qualifies
Lenders generally want:
- Meaningful equity in the current home (combined loan-to-value caps across both properties are common)
- Solid credit and the income to carry both payments for the bridge period, or a program that qualifies on the exit
- A clear exit — a listing agreement, a contract, or a realistic sale timeline
Alternatives to ask about
- HELOC on your current home — often cheaper, but usually must be opened before you list the home.
- Buy-before-you-sell programs — specialty lenders and some brokerages advance the down payment and take a fee.
- Recasting — buy with a smaller down payment now, then make a lump-sum payment and recast the new loan after the sale (if the lender allows it).
- A sale-contingent offer — free, but weakest in a seller's market.
Where Quickie Mortgages fits
Bridge financing is not universal — many retail lenders do not offer it. We match you with licensed lenders who do, so you spend your time comparing structures instead of hunting for one.
Questions people ask
Can I get a bridge loan if my home is not listed yet?
Some lenders require a listing or a contract; others only require a plan to sell. Ask early — it changes which lenders will work with you.
What happens if my home does not sell in time?
Most bridge lenders offer an extension for a fee, and some allow the bridge to convert to longer-term financing. Discuss the fallback before you sign, not after.