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.
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
Frequently Asked Questions
Related programs and next steps
Home Equity
Buy Now Sell Later
Buy your next home before selling your current one, without a sale contingency.
Learn more Home EquityHELOC
A revolving line of credit secured by the equity in your home.
Learn more RefinanceCash Out Refinance
Replace your mortgage with a larger one and take the difference in cash.
Learn moreConsidering 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.