Bridge Loans
Short-term financing that bridges the gap between buying your next home and selling your current one.
Program Overview
A bridge loan is a short-term financing solution (typically 6–12 months) that allows homeowners to purchase a new property before selling their existing one. Instead of making the sale of your current home a contingency or waiting to sell before buying, a bridge loan provides the funds to act quickly in competitive markets.
Who Is This Loan For?
- ✓ Homeowners buying a new home before selling their current one
- ✓ Buyers in competitive markets who can't wait for a contingent sale
- ✓ Investors acquiring properties that need quick closing
- ✓ Borrowers who need short-term capital for real estate transactions
Key Benefits
Buy Before You Sell
No need to make your purchase contingent on selling your existing home.
Quick Funding
Bridge loans can close faster than traditional mortgages.
Competitive Offers
Removing sale contingencies makes your offer stronger in hot markets.
Flexible Terms
Typically 6–12 month terms with interest-only payments.
Qualification at a Glance
General Requirements
- Sufficient equity in current property
- Plan to sell existing home within the bridge loan term
- Credit score of 680+
- Proof of ability to carry both properties temporarily
Advantages
- ✓ Eliminates sale contingencies
- ✓ Fast closings
- ✓ Compete effectively in hot markets
- ✓ Interest-only payment options
- ✓ Short-term commitment
Tradeoffs to Consider
- ↔ Higher interest rates than traditional mortgages
- ↔ Must sell existing home within the term
- ↔ Carrying costs of two properties
- ↔ Risk if existing home takes longer to sell
- ↔ Fees and closing costs
Common Scenarios
Family Upgrading in a Seller's Market
A family finds their dream home but hasn't sold their current house. A bridge loan lets them make a strong, non-contingent offer while their home is listed.
Documents Typically Needed
- Current property documentation
- Listing agreement (if listed)
- Income and asset verification
- Purchase contract for new property
- Appraisals for both properties
Frequently Asked Questions
Most bridge loans have terms of 6–12 months. They are designed to be repaid when the borrower sells their existing property or secures long-term financing.
Broker Disclosure: Scout Financial Group Inc DBA Airus Lending is a licensed mortgage broker (NMLS #2187418) and does not make loans or credit decisions. Airus Lending works with multiple wholesale lenders to help borrowers compare available loan options. Final approval depends on the lender, automated underwriting findings, documentation, state requirements, and overall borrower profile. Not all applicants will qualify.