Keep life moving while transitioning homes
One of the most stressful parts of moving is timing. You find the perfect next home—but your current one hasn’t sold yet. Do you wait and risk missing out? Or rush a sale and leave money on the table?
This is where bridge loans come in. They’re designed to help homeowners move forward confidently without being boxed in by timing.
What Is a Bridge Loan?
A bridge loan is a short-term loan that allows you to tap into the equity of your current home before it sells. It quite literally “bridges” the gap between buying your next home and selling your existing one.
These loans are typically repaid once your current home is sold.
How Bridge Loans Work
Here’s the typical flow:
- You apply for a bridge loan based on your current home’s equity
- Funds are used for a down payment or full purchase
- You buy your next home without a sale contingency
- Your current home sells
- The bridge loan is paid off with the proceeds
This structure gives you flexibility and stronger negotiating power.
When a Bridge Loan Makes Sense
Bridge loans are often ideal when:
- You have significant equity in your current home
- You want to avoid contingent offers
- You’re buying in a competitive market
- You want time to sell your home properly (not rushed)
- You’re relocating or upsizing
They’re commonly used by move-up buyers and homeowners transitioning between properties.
Pros and Cons to Consider
Pros
- Buy before you sell
- Stronger purchase offers
- Less pressure to accept a low sale price
- More control over timing
Cons
- Short-term interest costs
- Temporary dual housing expenses
- Not ideal for long holding periods
A bridge loan is a strategic tool—not a long-term solution.
How Affinity Home Lending Helps Homeowners Use Bridge Loans Wisely
We help homeowners:
- Evaluate equity and borrowing capacity
- Compare bridge loans vs. HELOCs or cash-out refis
- Structure loans to minimize overlap risk
- Coordinate timing with Realtors and closings
The goal isn’t just approval—it’s a smooth transition.