How does a bridge loan work for buying a new home before selling?

A bridge loan is a short-term loan — typically 6–12 months — secured by the equity in your departing (current) home. It provides funds to purchase your new home without waiting for your old home to sell. Once your old home closes, the sale proceeds pay off the bridge loan. During the bridge period, you typically make interest-only payments on the bridge while still paying your existing mortgage.

What interest rates do bridge loans carry?

Bridge loans typically carry rates 1–3% higher than conventional 30-year fixed rates, reflecting their short-term nature, higher risk profile, and the additional servicing cost. They are interest-only during the bridge period, which limits the monthly payment somewhat. Factor both the higher rate and the interest-only period into your total cost calculation.

What are the main risks of using a bridge loan?

The primary risk is a delayed sale of your departing home. If your home doesn't sell before the bridge term expires, you may need to extend (at additional cost), refinance the bridge into a longer-term loan, or face a default situation while carrying two mortgages simultaneously. Bridge loans work best when your departing home is well-priced and actively listed in a reasonably liquid market.

How do I qualify for a bridge loan in Oregon or California?

Qualification centers on the equity in your departing home rather than income alone. Most lenders look for meaningful equity — enough that the bridge amount stays at or below 80% LTV after the existing mortgage payoff — plus a credit profile in the mid-600s or higher and evidence your departing home is priced to sell. Because the loan is short-term and interest-only, the qualification bar is often more flexible than a permanent mortgage, but you'll still document the departing home's value, your existing balance, and your plan for the new purchase.

How fast can a bridge loan close?

Bridge loans are built for speed — many close in one to two weeks, and sometimes faster when the departing home already has an appraisal and clean title. That timeline is the whole point: it lets you write a non-contingent offer and compete with cash buyers in a tight Oregon or California market. To move quickly, have your departing home's mortgage statement, a recent valuation, and your purchase contract ready when you apply.

Do I have to qualify for two mortgage payments at once?

It depends on the program. Some bridge structures require you to qualify carrying both the existing mortgage and the new loan, while equity-based bridge programs focus on the departing home's equity and the exit (the pending sale) rather than layering both payments into your debt-to-income ratio. Because the bridge itself is interest-only and paid off at sale, the carrying cost is usually lower than a full second mortgage payment — but confirm the specific program's DTI treatment before you rely on it.

Can I get a bridge loan to buy a primary residence?

Yes. Buying your next primary residence before your current one sells is the most common reason homeowners in Oregon and California use a bridge loan. The bridge is secured by the equity in your departing home and provides the down payment (or full purchase funds) for the new primary residence, so you can write a non-contingent offer and move on your own timeline. Once your old home sells, the proceeds pay off the bridge. Bridge loans aren't limited to primary homes — they also work for second homes and investment purchases — but the buy-before-you-sell primary-residence move is exactly what they're designed for.

Free Calculator

Bridge Loan Calculator

Estimate your bridge loan amount (up to 80% LTV minus existing mortgage), monthly interest cost, total bridge interest over the term, and compare it against the real cost of temporary housing — so you can make the buy-before-you-sell decision with actual numbers.

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Bridge LoansView loan page

Get Started in 3 Steps

How to Use the Bridge Loan Calculator

Enter Your Departing Home Details

Input your current home's value and existing mortgage balance. The calculator determines your maximum bridge loan at 80% LTV minus the mortgage payoff.

Set Your Bridge Rate & Term

Enter your expected bridge loan interest rate and the number of months you anticipate carrying it before your old home sells.

Compare Bridge vs. Temporary Housing

Review total bridge interest cost alongside the cost of sell-first-then-buy (temporary rent + moving costs) to choose the better strategy.

Departing Home Value$650,000

$100K$2M

Existing Mortgage Balance$180,000

$0 (paid off)$585,000

Bridge Loan Amount$340,000

$0$340,000 max

Bridge Interest Rate9.0%

6.00%15.00%

Expected Bridge Term6 months

1 mo24 mo

Alt: Monthly Temp Housing Cost$3,200/mo

$500$10K

Bridge Loan Amount

$340,000

Home value × 80% minus existing mortgage

Monthly Interest

$2,550

Interest-only at 9.00% per month

Total Bridge Interest

$15,300

Over 6 months — full cost of bridging

Alt: Temp Housing Cost

$19,200

6 mo × $3,200/mo (sell-first alternative)

Bridge Saves vs. Sell-First

$3,900

Bridge interest ($15,300) is lower than temp housing ($19,200) — plus you avoid disruption

✓ Bridge wins on cost

Net home equity (value minus balance): $470,000 · Current LTV: 27.7% · Bridge uses up to 80% LTV, leaving remaining equity intact until sale.

Want a real number for your scenario?

These are estimates only. Actual bridge terms, rates, and fees depend on property appraisal, lender guidelines, and your full financial profile.

Or call 503-966-9255

Estimates are illustrative and do not constitute a commitment to lend. Bridge loan availability, LTV limits, and rates vary by lender and borrower profile. Lumen Mortgage Corporation · NMLS #1498678 · Licensed in Oregon & California.

Quick Answer

How much can I borrow with a bridge loan?

Most bridge loans lend up to 80% of your departing home's appraised value minus any outstanding mortgage balance. For example: a home worth $700,000 with a $200,000 mortgage = maximum bridge of $360,000. Bridge rates are typically 1-3% above conventional rates.

Max bridge = (Home Value x 80%) - Mortgage Balance

Term: typically 6-12 months

Interest-only payments during bridge period

Rates: 1-3% above conventional 30-year fixed

Paid off when departing home sells

Risk: delayed sale extends bridge cost

Best for: Homeowners buying a new home before selling their current one, avoiding contingent offers in competitive markets

How It Works

Understanding the Bridge Loan Calculator

A bridge loan lets you purchase your next home before your current home sells — eliminating the need for a sale contingency that could weaken your offer in a competitive market. It's secured by the equity in your departing home and structured as a short-term, interest-only loan.

Worked example: Your current home in Lake Oswego is worth $800,000 with a $250,000 mortgage. Maximum bridge at 80% LTV: ($800,000 x 0.80) - $250,000 = $390,000. You need $350,000 for the down payment on your new home. Bridge rate: 8.50%. Monthly interest-only payment: $2,479. If your old home sells in 4 months, total bridge cost is $9,917 in interest plus $3,000-$5,000 in origination fees — approximately $13,000-$15,000. Compare to sell-first-then-rent: 4 months at $3,500/month ($14,000) plus two moves ($4,000-$6,000) = $18,000-$20,000.

The calculator computes your maximum bridge amount, total interest cost, and compares bridge vs. temporary housing side by side.

Ready to apply?

Numbers look right? Explore our Bridge Loans page for eligibility details, rates, and next steps.

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About This Calculator

What the Bridge Loan Calculator is For

Bridge loans let you purchase your next home before your current one sells — but whether the math works depends on three numbers: how much equity you can access, what the interest-only payments will cost over the bridge term, and whether bridging is cheaper than the alternative (sell first, rent, then buy). This calculator handles all three. Enter your departing home's value, existing mortgage balance, bridge rate, and expected term to see your maximum bridge loan amount at 80% LTV, your monthly interest-only payment, and your total bridging cost — then compare it directly against the cost of temporary housing to see which strategy wins for your scenario.

Common Use Cases

Calculating how much bridge loan equity you can access at 80% LTV
Comparing total bridge interest against the cost of temporary housing
Deciding whether buy-before-you-sell pencils better than sell-first-then-buy

Ready to turn numbers into a loan?

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Common Questions

Bridge Loan Calculator — Frequently Asked Questions

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