Specialty Lending
A bridge loan is short-term financing — typically 6 to 12 months — that uses the equity in your current home to fund the down payment or full purchase price of your next one. You close on the new home first, then sell the old home on your own timeline, and the bridge loan is paid off from the sale proceeds. Bridge loans are used both by consumers moving up or relocating (bridging the timing gap between sale and purchase) and by real estate investors who need fast capital to lock in a deal before traditional financing can close. Rates are meaningfully higher than standard mortgages — usually 8–12% — because the loan is short-term and the lender takes on timing risk. Some bridge programs structure the payment as interest-only during the bridge period; others accrue interest and pay it all at payoff. The tradeoff is worth it when speed and certainty beat the rate premium, which is almost always the case in competitive markets or time-sensitive deals.
A bridge loan uses equity in your current home (or an investment property) to fund part or all of your new purchase — so you’re not waiting on a sale before you can buy.
These are short-term loans, typically 6 to 12 months, designed to be paid off once your current property sells or you secure permanent long-term financing.
Rates run 8–12% — meaningfully higher than standard mortgages — reflecting the short term and timing risk the lender absorbs.
Bridge loans are typically interest-only during the bridge period, with the full principal due at payoff. Some programs structure as deferred interest (accrues until payoff).
Different structures exist: fast-turn preferred bridge (1–2 business days), standard bridge with appraisal, and extended bridge for longer timelines.
Lenders underwrite to both properties — your current home’s equity and the new home’s purchase price — plus your income and credit profile.
Needs to make a non-contingent offer on the new home but hasn’t sold the current one yet. Bridge loan provides the down payment from current home equity; pays off when current home sells.
Starting a new job in 30 days in a different city; selling the current home takes 60–90 days in normal conditions. Bridge closes the gap so you can move when the job requires.
Found a deal at $350k that needs to close in 10 days; traditional DSCR or conventional financing takes 30–45 days. Bridge funds the purchase fast; investor refinances to long-term DSCR after stabilization.
Bought with a bridge, rehabbing property, won’t qualify for long-term financing until stabilized. Bridge extends the window until rental income and appraisal support a DSCR refinance.
Signed contract on new construction with a 4-month build timeline. Bridge funds the down payment from current home equity; closes on current home near completion of the new home.
Current home value $600k with $300k mortgage → $300k equity. Bridge advances $250k (about 83% of equity) at 10% interest-only. Monthly payment about $2,083 during bridge. Current home sells 90 days later; bridge paid off from net sale proceeds.
Investor buys $400k distressed property with a 10-day bridge close at 11%. Loan amount $320k (80% of purchase). Interest-only monthly payment about $2,933 for 6 months. Investor rehabs, stabilizes, and refinances to 30-year DSCR at 7.75% permanent rate.
Consumer uses bridge with a guaranteed offer backstop on current home. Bridge amount $280k at 9.5%. Current home doesn’t sell in 150 days; guaranteed offer triggers at pre-agreed price of $570k (slight discount to market estimate). Bridge pays off cleanly from that sale.
Example figures use illustrative rates and are for educational purposes only. Actual rates, terms, and costs depend on credit profile, market conditions, and property specifics.
Buy Before You Sell programs (Contingency Buster, Trade-In Mortgage) bundle the bridge-style mechanism with a guaranteed offer and coordinated marketing of the departing home. Standard bridge is simpler, faster, and cheaper when you don’t need the full bundled service.
HELOC is cheaper (typically prime + margin, currently ~8.5%) and has longer payoff flexibility. But HELOC requires qualifying with the full new-purchase mortgage plus the HELOC payment, and must close before listing. Bridge is purpose-built for the move and excludes the current mortgage from the new-purchase qualifying.
Hard money is similar in structure (short term, higher rate) but typically targeted at investment and distressed property. Consumer bridge is a cleaner option for owner-occupied moves.
Cash-out refi on current home can access equity at lower long-term rates, but it requires a full refinance, resets your rate on the existing balance, and takes 30–45 days. Bridge is faster and purpose-built for short-term use.
Explore the programs bridge loans — buy before selling your home are most often compared against, plus the Specialty Lending hub for the full lineup and today's mortgage rates for current pricing context.
The preferred bridge path can often be approved within one to two business days. Standard and extended options may take a bit longer depending on the complexity and documentation needed.
Bridge loan structures vary, but many options are designed to minimize your payment burden during the overlap period. We’ll help you understand exactly what to expect before you commit.
That depends on the structure. The guaranteed offer option protects you in that scenario — if your home hasn’t sold by the end of the bridge period, there’s a backstop offer in place so you’re not left holding two properties indefinitely.
Most bridge loans price in the 8–12% range — significantly higher than standard 30-year mortgages. The rate premium reflects the short term, the lender’s timing risk, and the speed of execution.
Consumer bridge programs typically require 25% or more equity in your departing home. Investor bridge may allow less equity on distressed or value-add deals depending on the program.
Yes. Investor-focused bridge programs are common for buyers who need fast closings on distressed, off-market, or BRRRR-strategy deals. Rates are slightly higher than consumer bridge in most cases.
Typical fees include 1–3 points at origination (1–3% of the loan amount), plus underwriting, appraisal, and title fees. Exit fees are rare but some programs charge them if the loan is paid off very early.
Most programs allow extensions, typically 3 months at a time, in exchange for a fee (often 1% of the balance per extension). Plan for the possibility even if you expect a fast sale.
If the bridge loan is secured by your primary residence and used to acquire another primary residence, the interest is generally deductible as mortgage interest subject to standard IRS rules. Consult your CPA on specifics.
Yes — some bridge programs specifically support renovation or fix-and-flip use cases. For most consumer bridge scenarios, though, the loan is tied to a home purchase.
Before committing to a bridge, model the new home's permanent payment in the mortgage calculator so you know what the long-term payment looks like once the bridge pays off.