How long does bridge financing last?

Financing strategy · Home Equity

Bridge Financing

A bridge loan is short term financing secured by your departing residence, your new home, or both. It supplies the down payment and closing funds for the new purchase and is repaid when the departing home sells.

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Who it is designed for

Homeowners buying before selling
Buyers whose equity is tied up in a property that has not closed
Buyers who need speed in a competitive negotiation

Eligible occupancy types

Primary residence, with select programs allowing other occupancy types

Down payment or equity

Funding is based on available equity in the departing property, subject to the program's loan to value limits.

Major benefits

Access equity before your sale closes
Supports non contingent offers
Short term structures designed to be repaid at sale

Important considerations

Higher cost than long term financing
Defined maturity, so a sale delay creates pressure
Fees and interest reduce net proceeds from the sale

How qualification generally works

Equity in the departing property
A credible sale plan and timeline
Credit and, depending on the program, income documentation

Documents commonly requested

Photo ID and Social Security number for each borrower
Most recent pay stubs covering a full 30 day period, if you receive W2 wages
W2s and/or federal tax returns for the most recent years requested
Two months of asset statements for accounts used for down payment and reserves
Current mortgage statement, homeowners insurance and property tax information on properties you own
Explanations for large or non payroll deposits
Listing agreement or comparative market analysis on the departing home

Not sure this is the right mortgage?

Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.

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Frequently Asked Questions

Bridge loans are short term by design, commonly measured in months rather than years. The exact term, extension options and payoff requirements are set by the program.

Related programs and next steps

Home Equity

Considering bridge financing?

We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.

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