What Is a Bridge Loan?
A bridge loan is short-term financing that lets you buy a new home before selling your current one. It 'bridges' the gap between your two transactions, eliminating the need for a sale contingency — which makes your offer far more competitive. Bridge loans run 1-24 months with interest-only payments and no prepayment penalty, and are repaid when your departing home sells. You can borrow up to 80% LTV on the departing home, or up to 100% financing on the new home when cross-collateralized, case by case.
Key Facts
How Does a Bridge Loan Work?
A bridge loan uses the equity in your current home as collateral. You receive funds to cover the down payment (and sometimes more) on your new home, make interest-only payments during the bridge period, and repay the bridge loan in full when your current home closes. This allows you to make a non-contingent offer, move on your timeline, and avoid the stress of selling before buying.
When Should You Use a Bridge Loan?
Bridge loans are most valuable in competitive housing markets where sellers don't want to accept offers with sale contingencies. They're also ideal when you need to move quickly for a job relocation, want to avoid temporary housing, or found a dream home that won't last on the market. If you have significant equity in your current home, a bridge loan can be a powerful strategic tool.
What Does a Bridge Loan Cost?
Bridge loan rates are typically higher than standard mortgage rates — often in the 8-10% range — but the term is short (1-24 months), so the total interest cost is manageable. Most bridge loans also charge an origination fee of 1-2%. The key question isn't whether the bridge loan costs money, but whether it helps you win a home you'd otherwise lose — and at what price difference.
Bridge Loan vs. HELOC
A HELOC (Home Equity Line of Credit) is another way to access your equity, but HELOCs take 30-45 days to set up and have strict DTI requirements. Bridge loans can close in as few as 10 days and are underwritten differently — focusing on equity and the exit strategy (sale of the departing home) rather than traditional income documentation. For time-sensitive purchases, bridge loans are typically the better tool.
Realtor Referral
Bridge loans only work if both sides of the move are coordinated.
The bridge financing is the easy part. The hard part is having a realtor on the sell-side who lists, prices, and times the existing-home sale to match the new-home purchase window. We can introduce you to OR/CA realtors who've worked our bridge deals and know how to coordinate the dual closings.
No directory. No paid placements. No RESPA-restricted referral fees. We've worked alongside these pros on real Oregon and California deals — we'll make a personal email introduction so you can interview them yourself.
Or email us directly:
Licensed in Oregon & California · NMLS #1498678
From the Blog
Further Reading
Bridge LoansI Found My Dream Home But Haven't Sold Mine Yet — A Step-by-Step Guide to Buying Before You Sell in 2026
You found the house. It checks every box. But your current home hasn't sold yet — and the seller won't wait. Here's a calm, honest walkthrough of every option you have to buy before you sell, what each one actually costs, and how to decide which strategy fits your situation.
Loan TypesBuy First, Sell Later: How a Tiburon Couple Moved to Healdsburg and Recast Their Mortgage
A real case study: a couple buying a $2.125M Healdsburg home didn't want to sell their Tiburon condo until they moved. We paired a maximum $897,000 conventional loan with a $500,000 pledged asset line their financial advisor arranged, then planned a recast after the condo sale to bring the mortgage to about $300,000 with the same rate and term.
Bridge LoansBridge Loans: Buy Your Next Home Before Selling Your Current One
In a competitive market, waiting to sell before you buy can cost you the home you want. A bridge loan lets you make a non-contingent offer using your existing equity — here's how it works.