Buy Before You Sell: How a Bridge Loan Works

It’s the age-old problem. Sell your current home first and HOPE to find a replacement in 20 days, then try to survive the renovations… or purchase the dream home today, make the necessary renovations, and sell (and move) when the time is right.

How one client did it

We recently provided a $900,000 bridge loan in addition to a new mortgage, so our client had the down payment and the home improvement money before listing their current residence. They hope to have the renovations completed in 9 months, when they’ll be moving into their “brand new” home… the home of their dreams.

How a bridge loan works

A bridge loan is short-term financing secured by the equity in the home you already own. It covers the down payment (and sometimes renovation costs) on the new home, and it’s paid off when your current home sells.

What to weigh

• Bridge loans typically carry higher rates and fees than a standard mortgage, and they’re short-term.
• You’ll carry two homes until the first one sells, so plan for both payments.
• You’ll need enough equity in your current home to qualify.

If you’re stuck between selling first and buying first, call me and we’ll run the numbers…

Examples are for illustration only and are not a rate quote, a commitment to lend or an offer of credit. Rates, terms and eligibility vary.

Originally published in The Trusted Advisor, August 2026.