So you’re ready to buy a new home. But what do you do if you still own your current one? Do you sell first and risk having nowhere to live between closings? Or do you wait to buy, knowing you might miss out on the perfect property?
For many buyers like you, the solution is a Bridge loan. This short-term financing lets homeowners tap into the equity in their current property to make stronger offers on their next one.
This is Bridge loans 101, a simple breakdown of how they help buyers move forward and realtors close stronger deals.
What Is a Bridge Loan?
A Bridge loan mortgage provides financing that covers the gap between selling your current home and buying a new one. It allows you to borrow against the equity in your departure property and apply those funds toward your next purchase.
With a Bridge loan, buyers are able to:
- Access equity immediately to use as a down payment
- Make offers that compete with cash buyers
- Avoid carrying two mortgage payments at the same time
- Defer any monthly payments on the departure property for up to 12 months or until the property sells
Instead of being forced to wait until the old home sells, buyers can move forward on their timeline and take advantage of opportunities as they arise.
How Bridge Loans Work
The process is straightforward:
- The current home is listed for sale.
- A Bridge loan is secured against that property.
- The existing mortgage is paid off and the equity is used as a down payment on the new purchase.
- Both the Bridge loan and the new mortgage close together.
- When the departure home sells, the Bridge loan is paid off in full.
Because there are no monthly payments on the departure property during the term, the debt-to-income ratio for the new mortgage isn’t impacted. At LendSure Home Loans, instead, the Bridge loan balance is due in a balloon payment at either six months for investment properties or twelve months for primary residences. This structure allows buyers the breathing room to sell their current home without added financial stress.
Who Should Consider a Bridge Loan?
Bridge loans can fit in a variety of scenarios, including:
- Move-up buyers who need more space but don’t want to risk losing out while waiting to sell
- Downsizers looking for the right long-term property without rushing into a sale
- Relocating families who need to secure housing quickly in a new city or state
- Second-home buyers and investors who want to access equity without disrupting other holdings
What unites all of these buyers is the desire for flexibility and freedom: the freedom to buy when the right property comes along, without being constrained by the timing of their current home’s sale.
Why Realtors Recommend Bridge Loans
For realtors, a Bridge loan mortgage can make transactions smoother and more successful. Sellers favor clean offers with fewer contingencies, and a buyer who can present that type of offer has a much higher chance of closing.
By recommending Bridge loans, agents can:
- Help clients write stronger, non-contingent offers
- Shorten transaction timelines
- Reduce the stress of managing two closings at once
It’s a win for borrowers, a win for sellers, and a win for agents.
Beyond helping individual clients, Bridge loans can also strengthen a realtor’s overall business. By offering financing solutions that other agents may not suggest, you position yourself as a trusted guide with access to tools that truly solve problems. That reputation often leads to more referrals and repeat clients down the road.
The LendSure Home Loans Bridge Loan Advantage
At LendSure Home Loans, our Bridge loan program is designed to keep the process moving for buyers and the realtors who guide them. The goal is to provide flexibility, fast answers, and straightforward terms that make sense in a competitive market.
Highlights of our Bridge loan program
- Pre-qualifications often available in about 24 hours, with most approvals completed in just a few days
- No monthly payments for up to 12 months, helping buyers focus on the purchase ahead
- Competitive loan-to-value options for both primary residences and second homes
Guidelines
- Up to $2,000,000 loan amounts for primary residences and up to $1,000,000 loan amounts for second homes or investment properties
- Up to 75% LTV on loan amounts up to $1,500,000 and 65% LTV for loan amounts between $1,500,000 to $2,000,000
Why Choose LendSure Home Loans?
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We’re redefining the mortgage experience one loan at a time. Thanks to our common-sense approach and dedicated lending team, we often say’ yes’ to today’s homeowners and investors.
Ready to explore LendSure Home Loans’ Bridge loan program or other offerings? Contact us today.
