What Is a Bridge Loan, and When Might I Need One
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. A Bridge Loan Helps You “Bridge” the Gap Between Homes
A bridge loan is a short-term financing tool that lets you use the equity in your current home to help purchase your next one.
Here’s how it works:
You borrow against the equity in your current home
Use that money as a down payment on your new home
Pay the loan off once your existing home sells
It’s like borrowing time and money—just long enough to make a smooth transition.
2. It’s Useful When You Need to Buy Before You Sell
Bridge loans can be a lifesaver if:
You’ve found your dream home and need to act fast You haven’t sold your current home yet You don’t want to make a contingent offer (which sellers may reject) You can’t afford two mortgages at once
It gives you buying power and flexibility—especially in a competitive market where timing matters.
3. Be Aware: Bridge Loans Are Short-Term and Come at a Cost
Bridge loans are meant to be repaid quickly—usually in 6 to 12 months. That means:
Higher interest rates than a typical mortgage Possible fees and closing costs Best used when you’re confident your current home will sell soon
Have a clear exit strategy before jumping in—because the “bridge” needs to lead somewhere solid.
Thinking of Buying Before You Sell? Let’s See If a Bridge Loan Fits
Download our free “Move-Up Buyer Strategy Guide” — includes bridge loan scenarios, timelines, and budgeting tips
Chat live now to ask if you qualify for a bridge loan and what it could cost
Schedule a call with a Stairway Mortgage advisor to map out your move and financing plan
At Stairway Mortgage, we help you make your next move without missing a step—
because the right loan makes all the difference.
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