Bridge loans
A bridge loan is a short term loan secured by your current home that helps you buy the next one before you sell. You repay it when the first home sells. Bridge loans are offered by some lenders, cost more than a standard mortgage, and terms vary widely.
How it works
- You borrow against the equity in your current home for a short term, often months, not years.
- You may carry both homes' payments until the first home sells.
- Fees and rates are usually higher than for a standard mortgage.
Other options
- A HELOC opened before you list your home.
- An offer contingent on selling your current home, which some sellers accept.
- Selling first and renting short term, which avoids carrying two homes.
Questions people ask
- What happens if my home does not sell in time?
- You still owe the bridge loan and both housing payments. Ask the lender what happens at the end of the term before you sign.
- Can I get a bridge loan on a co-op?
- It is harder, since co-ops are financed as share loans and boards may limit financing. Ask lenders that work in your building.
- Is a bridge loan the same as a HELOC?
- No. A HELOC is a revolving line you can keep. A bridge loan is a short term loan meant to be paid off when your home sells.
Official sources
Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.