Buy Now, Sell Later – Consider Bridge Loan Financing for a Smoother Move

Buying a new home before selling your current one can be a challenge, especially in a competitive market. Bridge loans provide a solution, allowing you to make a strong offer without a home sale contingency. Here’s a look at three bridge loan options that can help you buy now and sell later with confidence.

Below are three bridge loan options to make your move easier:

Back Up Offer Bridge Loan

How It Works: Unlocks equity from your current home for a down payment on the new one. Meanwhile, the lender provides a backup offer on your existing home—guaranteeing a buyer if it doesn’t sell within a set timeframe.

Why It Helps:

Makes your offer non-contingent, making it more competitive.
Provides a safety net if your home doesn’t sell in time.
Offers low or zero interest for a short period.

Cross Collateralization Bridge Loan

How It Works: Uses both homes as collateral for a single short-term loan, potentially funding your full purchase. Once your old home sells, the bridge loan is repaid.

Why It Helps:

Lets you buy without waiting to sell first.
Allows for a larger loan amount using your combined home equity.
Keeps monthly payments low with interest-only options.

Equity Unlock Bridge Loan

How It Works: Pays off your existing mortgage and unlocks cash from your home’s equity to fund your new purchase. No monthly payments are required until your old home sells.

Why It Helps:

Eliminates double mortgage payments.
Improves your debt-to-income ratio for mortgage approval.
Gives you up to 12 months to sell your current home.

Bridge Loan Options at a Glance: Quick Comparison

Which Option Is Right for You?

Each bridge loan solution provides a non-contingent offer advantage while allowing a smoother transition to your next home. If you’re looking to move before selling, talk to a mortgage advisor to explore which program best fits your financial situation.

Ready to buy your next home before selling? Contact us today to learn more!