Fast Short-Term Financing

Bridge Loans

Quick, short-term financing that bridges the gap between selling your current home and buying your next one. Get approved in days, close in 2 weeks, and make non-contingent offers with confidence.

0 Days to Approval
0- Month Terms
0% Max LTV Combined
0 Days to Close
Understanding Bridge Loans

What is a Bridge Loan?

A Bridge Loan is a short-term financing solution that helps homeowners purchase a new property before selling their existing home. It "bridges" the financial gap during the transition period, allowing you to make non-contingent offers and compete with cash buyers without waiting for your current home to sell.

Bridge loans typically last 6-12 months and use your existing home's equity as collateral. You can borrow up to 70 to 75% of your current home's value, giving you the funds needed for a down payment on your new property. Once your old home sells, you pay off the bridge loan.

92% of bridge loan borrowers successfully transition to their new home

Close in 14 Days

Fast approval and funding lets you compete with cash buyers and avoid contingencies.

Common Scenarios

When to Use a Bridge Loan

Perfect solutions for homeowners in transition

Buying First

Purchase Before Selling

Found your dream home but haven't sold your current one yet

  • Make non-contingent offers
  • Compete with cash buyers
  • Avoid temporary housing
  • Move on your timeline
  • No rush to sell at discount
Typical Duration 6-12 months
Max LTV 80% combined
Competitive Markets

Hot Market Advantage

Win bidding wars in competitive seller's markets

  • Remove sale contingency
  • Stronger offer position
  • Fast closing timeline
  • Seller preference advantage
  • Lock in rates before they rise
Approval Speed 5-7 days
Closing Speed 14-21 days
Home Improvements

Renovation Before Sale

Fund improvements to maximize your home's sale price

  • Renovate before listing
  • Increase sale value
  • Quick access to equity
  • Sell for top dollar
  • ROI on improvements
Loan Purpose Purchase or Reno
Interest Interest-only
Loan Features

Bridge Loan Benefits

Fast, flexible financing for seamless transitions

7
Days to Approve
6-12
Month Terms
70-75%
Max Combined LTV
0%
Down on Old Home
How It Works

Bridge Loan Process

  • Step 1: Apply and get approved (5-7 days)
  • Step 2: Receive bridge loan funds based on current home equity
  • Step 3: Use funds for down payment on new home
  • Step 4: Make interest-only payments during transition
  • Step 5: Sell your current home
  • Step 6: Pay off bridge loan with sale proceeds
  • Step 7: Refinance or keep permanent financing on new home
Pro Tip: List your current home before or immediately after closing on the new one
Requirements

Qualification Criteria

  • Credit Score: Minimum 680-700
  • Current home equity: At least 20%
  • Debt-to-income ratio: Below 43%
  • Proof of ability to carry two mortgages
  • Current home must be listed or list within 30 days
  • Good payment history on existing mortgage
  • Sufficient assets for closing costs
  • Clear exit strategy (sale agreement preferred)
Secured Loan
Your current home serves as collateral
Cost Comparison

Bridge Loan vs Other Options

Understanding your financing alternatives

Feature Bridge Loan Home Equity Loan HELOC Sale Contingency
Approval Speed 5-7 days 2-4 weeks 2-4 weeks N/A
Closing Speed 14-21 days 30-45 days 30-45 days Depends on sale
Interest Rate 9-12% 7-9% 8-10% 0%
Loan Term 6-12 months 5-30 years 10-30 years N/A
Payment Type Interest-only Principal + Interest Interest-only/P+I N/A
Offer Strength Very Strong Moderate Moderate Weak
Best For Buying before selling Debt consolidation Flexible access Buyer's market
Note: Bridge loans have higher rates but offer speed and flexibility. Consider your timeline and market conditions when choosing.
Application Process

How to Apply

Fast-track approval process in just 4 steps

1
Initial Application & Documentation

Submit application with proof of current home value, existing mortgage balance, income verification, and credit authorization. Process takes 1-2 days.

2
Home Appraisal & Equity Verification

Lender orders appraisal of your current home to confirm value and available equity. Appraisal typically completed within 3-5 days.

3
Underwriting & Approval

Underwriter reviews your ability to carry two mortgages, verifies exit strategy, and issues conditional or final approval. Takes 2-3 days.

4
Closing & Funding

Sign loan documents, closing costs are due (typically 2-5% of loan amount), and funds are transferred. Ready to make your new home purchase!

Required Documents
  • Current mortgage statement
  • Recent pay stubs (30 days)
  • Bank statements (2 months)
  • Tax returns (2 years)
  • Government-issued ID
  • Purchase agreement (if available)
Common Questions

Frequently Asked Questions

What happens if my current home doesn't sell in 6 months?
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Most bridge loans offer extensions for 3-6 additional months (sometimes with a fee). Alternatively, you can refinance the bridge loan into a traditional loan or HELOC. Some lenders offer 12-month initial terms. Plan to list your home immediately and price competitively to avoid needing an extension.
Do I need to make payments on both mortgages?
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Yes, you'll make your regular payment on the existing mortgage plus interest-only payments on the bridge loan. However, you'll need to qualify showing you can afford both. Once your old home sells, you pay off both the bridge loan and old mortgage with the sale proceeds.
How much equity do I need in my current home?
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Typically you need at least 20% equity in your current home. Lenders will loan up to 80% of your home's value minus your existing mortgage. For example, if your home is worth $400k with a $250k mortgage, you have $150k equity and could potentially borrow up to $70k bridge loan.
Can I get a bridge loan if I haven't found a new home yet?
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Some lenders offer "blanket" bridge loans where you get approved first, then find your new home within a certain timeframe. Others require a signed purchase agreement before final approval. Pre-approval helps you shop with confidence, but final approval typically requires the new property details and address.
What are the typical closing costs for a bridge loan?
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Bridge loan closing costs typically range from 2-5% of the loan amount. This includes origination fees (1-2%), appraisal fees ($400-600), title insurance, recording fees, and attorney fees. Some lenders offer "no closing cost" options where fees are rolled into the interest rate or loan balance.
Can I use a bridge loan for investment properties?
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Most bridge loans are designed for primary residences, but some lenders offer bridge financing for investment properties or second homes. The terms may be less favorable with higher interest rates and lower loan-to-value ratios. You'll need to demonstrate strong financial reserves and rental income potential.
What's the difference between a bridge loan and a home equity loan?
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Bridge loans are short-term (6-12 months) with interest-only payments, designed specifically for buying before selling. Home equity loans are long-term (5-30 years) with principal and interest payments. Bridge loans close faster (2-3 weeks vs 30-45 days) but have higher interest rates. Bridge loans are specifically structured to be paid off when you sell your current home.
Will a bridge loan affect my credit score?
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Initially, your credit score may drop slightly due to the credit inquiry and increased debt load. However, if you make timely payments and successfully pay off the loan when your home sells, the impact is temporary. Missing payments can significantly damage your credit score, so ensure you can afford both mortgage payments.

Ready to Get Started?

Get approved in days and buy your dream home

David Kulick NMLS # 1034355
Contact +1 (360) 710-9704
Email dkulick@coast2coastml.com

This page is for demonstration purposes only. All rates, terms, and figures are examples and subject to change.

Bridge loans are short-term financing with higher rates than traditional mortgages. You must qualify to carry two mortgages simultaneously. Failure to sell your current home could result in financial difficulty. Consult with a licensed mortgage professional. Equal Housing Lender.

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