How a Bridge Loan Can Help You Buy Before You Sell
One of the most common questions I hear from homeowners is:
"How do I buy a new home before selling my current one?"
It’s a valid concern. Whether you're upsizing for a growing family, downsizing after the kids move out, or simply ready for a new chapter, managing the timing of buying and selling can feel overwhelming.
That’s where a bridge loan can make all the difference.
What Is a Bridge Loan?
A bridge loan is a short-term loan that allows you to access the equity in your current home before it sells. This gives you the ability to make a strong, non-contingent offer on your next home—without having to sell your current home first.
Why Consider a Bridge Loan?
Bridge loans offer a number of key benefits:
Buy Before You Sell
You can shop with confidence, move at your own pace, and avoid the pressure of coordinating two transactions at once.
Make Stronger Offers
In a competitive market, a non-contingent offer can make you stand out. Sellers are more likely to accept offers that aren’t dependent on the sale of another home.
Prepare Your Home for Sale Properly
Once you’ve moved out, you can take your time preparing your current home for the market. That means decluttering, staging, and marketing it to its full potential—often leading to a higher sale price.
Who I Trust for Bridge Loans
I work closely with Sofia Nadjibi and Jamie Shea of Golden Gate Lending Group. They specialize in creative lending solutions, including bridge loans, and have deep experience working with Bay Area buyers and sellers.
Their team is fast, responsive, and thorough. They’ll help you explore your options, review your equity position, and walk you through what a bridge loan would look like in your specific scenario.
Bridge Loans vs. HELOCs: What’s the Difference?
Both bridge loans and Home Equity Lines of Credit (HELOCs) allow you to tap into the equity in your current home—but they serve different purposes.
A bridge loan is a short-term loan designed specifically for people who are buying a new home before selling their existing one. It’s typically paid off once your current home sells, and it can help you make a non-contingent offer. Monthly payments are often interest-only, and the loan is secured by the equity in your current home.
A HELOC, on the other hand, is a revolving line of credit that works more like a credit card. It’s ideal for ongoing or general expenses (like renovations), but it may not give you access to as much equity as a bridge loan—and it still requires monthly payments, which could be a burden if you're also managing a new mortgage.
Pros and Cons of a Bridge Loan
Pros
Enables you to make a non-contingent offer
Gives you flexibility with timing
Allows your current home to be shown and sold after you move out
Potential for a higher sale price due to better staging and presentation
Cons
Typically comes with higher interest rates than conventional loans
May require strong financials and credit
You may have two mortgages temporarily (though many bridge loans are interest-only)
Is a Bridge Loan Right for You?
If you have equity in your current home and want the freedom to buy before you sell, a bridge loan can provide the flexibility you need. The key is understanding your options and working with professionals who can guide you every step of the way.
I'm happy to help you determine whether a bridge loan is a good fit and connect you with Sofia and Jamie for a personalized consultation.
