A bridge loan is short-term financing that lets you buy your next home before your current one sells. Instead of writing a contingent offer, one that depends on your current house selling first, you walk into the negotiation with a non-contingent offer, backed by financing against the equity you already have.
In a competitive market, that difference matters more than most buyers realize. A seller comparing two similar offers will almost always take the one that isn't waiting on someone else's house to sell.
A bridge loan is secured, in whole or in part, against the equity in your current home. That gives you access to funds for your down payment and purchase before you've closed on the sale of your existing property.
Once your current home sells, the proceeds go toward paying off the bridge loan. The timeline is short by design. Bridge financing is meant to cover weeks or months, not years, and most homeowners repay it as soon as their sale closes.
The exact structure varies by lender and by borrower. Some bridge loans are interest-only during the bridge period, with no payments due until your existing home sells. Others are structured differently depending on how much equity you have and how quickly you expect to sell. This is not a one-size-fits-all product, and the right structure depends on your specific situation, which is exactly why it's worth a real conversation before you assume it will or won't work for you.
One of the biggest reasons homeowners choose a bridge loan is speed. Here is how the process typically moves, though your own timeline depends on your file and your sale.
Days 1-2: The conversation and pre-approval. You share your current home's value, your remaining mortgage balance, and the home you want to buy. Our team reviews your equity and gives you a real picture of what you can offer.
Days 2-5: Application and property review. You formally apply, and we order a valuation of the home securing the loan. Because a bridge loan leans on equity rather than a long income review, the file is often lighter than a traditional purchase mortgage.
Days 5-10: Approval and closing. Once the file clears our Approval Team, you close on the bridge loan and can move forward with a non-contingent offer. Many bridge loans close in about ten days, which is what lets you compete with cash buyers.
Weeks to months later: Your home sells and the loan is repaid. Bridge loans typically carry a term of up to 12 months, but most homeowners are out well before that, repaying the loan the moment their old home closes.
Costs vary by lender and by how your loan is structured, but you should expect to see a few categories. Rather than a single sticker price, think of it as the price of buying time and certainty in a competitive market.
We never quote a rate before we understand your file. What we will do is put every cost in writing up front, so you can compare the true cost of a bridge loan against the cost of losing the home you want, or of moving twice.
These figures are illustrative only, not a quote.
Say you own a home in Fairfield worth about $600,000, with $250,000 left on your mortgage. That leaves roughly $350,000 in equity. You have found your next home, listed at $750,000, and the sellers have three offers in hand.
A contingent offer, one that waits for your Fairfield home to sell, is the weakest of the three. With a bridge loan drawn against your existing equity, you make a non-contingent offer instead, put your down payment together from that equity, and close on the new home in about ten days.
You move once. A few weeks later your Fairfield home sells, the proceeds pay off the bridge loan, and you roll into a standard mortgage on the new house. The bridge loan did one job: it removed the timing problem that would have cost you the home.
Bridge loans tend to make the most sense for homeowners who:
It's less often the right tool if you have little equity built up in your current home, or if you're not genuinely ready to list. A bridge loan solves a timing problem, not a readiness problem.
Before you commit to a bridge loan, ask your lender:
What happens if my current home takes longer to sell than expected? Understand the plan, not just the best-case timeline.
What are the total costs involved? Origination, any monthly carrying costs, closing costs on both transactions. Get the full picture in writing, not just the headline terms.
Is this loan secured against my current home, my new home, or both? This affects your risk if something goes sideways.
What's the realistic exit strategy if the sale falls through? A good lender will have already thought about the exit before you ask.
Homeowners weighing how to tap their equity often compare a bridge loan with a home equity line of credit. They solve overlapping problems in different ways, and the right answer depends on your timeline and how much certainty you need at the offer stage. We walk through the trade-offs in detail in our guide to bridge loans versus HELOCs.
If you're sitting on equity, you've found the next place, and the only thing standing between you and a strong offer is the sale of your current home, a bridge loan may be worth a serious look. If you're earlier in the process, or your equity position is tighter, it may not be the right fit yet, and a good lender should tell you that honestly, not talk you into a product that doesn't fit your situation.
Every bridge loan is different because every homeowner's equity, timeline, and next move are different. The way to find out if it fits your situation is a direct conversation about your specific numbers, not a generic quote.
You can get a real starting point without handing over your Social Security number and without a hard credit pull. Our quote flow takes about two minutes and tells you what's actually possible with the equity you have.
Get started here, or reach out and we'll walk through your actual numbers together.
We are a family-owned Connecticut lender, based in Monroe since 1998, with a 4.9-star rating across 461+ Google reviews. We offer bridge financing in Connecticut, Massachusetts, and Rhode Island.
Many bridge loans close in about ten days, because qualification leans on your existing equity rather than a long income review. Your timeline depends on your file and the property securing the loan.
Bridge loans typically carry a term of up to 12 months, but most homeowners repay much sooner, as soon as their current home sells and the proceeds come in.
It depends on how the loan is structured. Some bridge loans are interest-only, and some defer payments until your existing home sells. We will lay out the structure and every cost in writing before you commit.
This is the most important question to settle up front. A good lender plans the exit before you sign, and there are options if your sale runs long. Ask about the plan, not just the best-case timeline.
Yes. A bridge loan is secured against the equity you have built, so an existing mortgage does not rule it out. What matters is how much equity you hold relative to what you owe.
AFC Mortgage Group LLC | NMLS #2801 | Monroe, CT | Equal Housing Lender.
This article is for educational purposes only and is not a commitment to lend. It does not constitute financial, tax, or legal advice. Program guidelines, terms, and availability vary and are subject to change. All loans are subject to credit approval, property approval, and underwriting review.
Become homeowners. AFC Mortgage Group will help you navigate the loan process, secure financing, and purchase your dream home.
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