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 typically have 6-12 month terms, interest-only payments, and are repaid when your departing home sells.
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 (6-12 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 little as 2-3 weeks 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.
Licensed in Oregon & California · NMLS #1498678
From the Blog
Further Reading
ResidentialI 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.
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.
Bridge LoansThe Bridge Loan Advantage: How Oregon & California Movers Buy Before They Sell
Moving between Oregon and California — or relocating within either state — forces most buyers into a brutal catch-22: you can't buy without selling, but you can't sell without somewhere to go. A bridge loan dissolves that dilemma. Here's how it works, what it costs, and when it's the smartest move you can make.