What is a Bridge Loan?
A bridge loan is a short-term loan that helps you buy a new home before selling your current one. It’s ideal for homeowners who need to move quickly and want to make strong, non-contingent offers — without waiting to sell first.
Who Should Consider a Bridge Loan?
Bridge loans are a great fit for buyers who:
- Want to buy a new home before selling their current one.
- Need to act fast in a competitive market.
- Don’t want to make monthly payments or use cash from savings.
- Want to make a cash offer without mortgage or appraisal contingencies.
How Does Your Bridge Loan Work?
Our bridge loan is structured to eliminate financial friction and maximize your buying power:
- No Monthly Payments: You don’t make any monthly payments. All interest and fees are deferred until payoff.
- No Cash Out of Pocket: You can close with zero money out of pocket — we roll all costs into the final payoff.
- No Equity Requirement: You don’t need equity in your current home to qualify.
- 100% Purchase Financing: We finance the entire purchase price of your new home — no down payment needed.
- Flexible Term: The loan lasts 4 months, with an option to extend for an additional 4 months.
- Competitive Rates: Interest rates range from 10% to 12%.
- 2.5% Origination Fee: Paid at closing but not out of pocket.
- Stronger Offers: Present your offer as cash with no mortgage or appraisal contingency, giving you a winning edge.
Do I Need Equity in My Current Home to Qualify?
No. Unlike most bridge loans, ours is not based on your current home’s equity. That means you don’t need to wait until your home appreciates in value or is under contract before qualifying.
Will I Need To Make Any Payments During The Loan?
No. Our bridge loan requires no monthly payments. All payments are deferred and due only when the loan is paid off — typically after your current home sells or when you secure long-term financing.
How is This Better Than a Traditional Mortgage or Contingency Offer?
With our bridge loan:
- You can make a cash offer on your next home — no financing or appraisal contingencies required.
- Sellers take you more seriously, especially in competitive markets.
- You avoid delays or lost deals caused by contingent offers or slow closings.
What Are The Costs Associated With The Bridge Loan?
- Interest Rate: 10% to 12% (interest accrues during the term but is not paid monthly).
- Origination Fee: 2.5% of the loan amount.
- All costs are deferred — no upfront cash is needed to close.
What Happens If I Need More Time To Sell My Home?
Our standard term is 4 months, but we offer a 4-month extension if you need more time. Extensions may involve an additional fee or approval.
What Happens Once I Sell My Home or Refinance?
Once your home sells or you refinance into a long-term mortgage:
- The bridge loan is paid off in full.
- Any remaining proceeds from your home sale are yours to keep.
- No prepayment penalty applies.
Check out our blog on What a Bridge Loan is here.
