Who it is for
- Move-up buyers in competitive markets who cannot win with a sale contingency
- Homeowners with substantial equity and a marketable current home
- Relocating buyers who must secure housing on a deadline
- Buyers who want to move once, not twice
Typical Buy-Before-You-Sell Bridge Loans requirements
| Mechanism | Bridge loan, HELOC on departing home, or equity-unlock purchase programs |
|---|---|
| Term | Typically 6-12 months |
| Repayment | Repaid from the sale of the departing home |
| Qualifying | May require qualifying with both payments (program-dependent) |
| Equity needed | Substantial equity in the departing home |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Establish the value of your current home and the accessible equity.
- Choose the structure: a dedicated bridge loan, a HELOC drawn for the down payment, or a buy-before-you-sell program with a partner offer.
- Buy the new home without a sale contingency, the strongest offer position.
- Move once, then list and sell the departing home.
- Repay the bridge from sale proceeds; some programs then recast the new mortgage to the lower balance.
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Pros and cons
Advantages
- Non-contingent offers win in competitive markets
- Move once instead of selling, renting, then buying
- No rushed sale of the current home under pressure
Trade-offs
- Carrying two housing payments during the overlap
- Bridge financing costs: rates, fees, or program charges
- If the old home does not sell, the bridge term can expire under pressure
- Requires significant equity to work
Documents you’ll need
- Current home valuation / listing analysis
- Existing mortgage statement
- New home purchase contract
- Standard income, asset, credit, and ID documents
Buy-Before-You-Sell Bridge Loans FAQ
Do I have to qualify with both mortgage payments?
It depends on the program. Some require it; others exclude the departing payment with a strong listing history or program guarantees. This is the first question to ask any bridge lender.
What if my current home does not sell before the bridge term ends?
Extensions may be available at a cost, but the real protection is pricing the departing home to sell. Bridge products assume a marketable home, overpricing it breaks the plan.
Bridge loan vs. HELOC for the down payment?
A HELOC on the current home is often cheaper and more flexible if you have the equity and can qualify. Dedicated bridge products help when HELOC qualification or timing does not work.
What is a recast after the sale?
Some programs apply the departing home’s proceeds to the new mortgage and "recast" (re-amortize) it at the lower balance, dropping your payment without refinancing.
How much does a bridge loan cost?
Typically 1-2% in fees plus interest-only payments at rates above conventional. On a $100,000 bridge for 6 months, expect several thousand in total cost.
How long do I get to sell?
Usually 6-12 months. Extensions exist but cost more. Price the departing home to sell, not to test the market.
Can I bridge if my current home is not listed yet?
Some programs allow it with a strong valuation. Most want to see a listing agreement or a clear sale plan.
Do bridge loans work for condos?
Yes, if the condo is warrantable and marketable. Hard-to-sell condos make weak bridge collateral.
What if I buy first and rates drop?
You can refinance the new mortgage after the bridge is repaid. Some programs even include a free recast when the old home’s proceeds hit.
How Buy-Before-You-Sell Bridge Loans compare
| Buy-Before-You-Sell Bridge Loans | Bridge Loans | HELOCs & Home Equity Loans | Cash-Out Refinance | |
|---|---|---|---|---|
| Best for | Move-up buyers in competitive markets who cannot win with a sale contingency | Buying before a sale or 1031 closes | Owners with a low-rate first mortgage | Paying off high-interest debt |
| Down payment | , | , | , | , |
| Credit | , | , | , | , |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.
HELOCs & Home Equity Loans
A HELOC (home equity line of credit) and a home equity loan both let you borrow against your home while keeping your current first mortgage.
Cash-Out Refinance
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash, commonly up to 80% of your home’s value on a primary residence.
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.