A Bridge Loan can be a valuable solution for homeowners facing the challenge of buying a new home before selling their current one. Here’s how it works and why it might be beneficial:

  • No Contingency Offers: One of the biggest advantages of a Bridge Loan is that it allows you to make an offer on a new home without the contingency of selling your current home first. This can make your offer more attractive to sellers, especially in competitive markets where contingency offers may be less desirable.
  • Using Home Equity: Bridge Loans utilize the equity in your current home to provide the down payment or purchase price for the new home. This means you can access funds for the new home purchase before your existing home is sold.
  • Smooth Transition: By eliminating the need to wait for your current home to sell, a Bridge Loan streamlines the process of moving into your new home. It provides flexibility and convenience during the transition period.
  • Temporary Financing: Bridge Loans are typically short-term loans, often with terms ranging from a few months to a year or more, depending on the lender. Once your current home sells, you can use the proceeds to pay off the Bridge Loan.