List Your Home Competitively
Pricing your current home correctly and listing it quickly increases confidence.
Bridge Loan: Fast, Flexible Financing for Your Next Home
Bridge the gap between selling your current home and buying your next one with specialized Bridge Loan Financing.
What Is a Bridge Loan?
A Bridge Loan is a short-term, secured loan designed to "bridge" the financial gap when a homeowner wants to purchase a new property before their current home has officially closed and funded. This loan leverages the equity in your existing home to provide the down payment and often the full purchase price of your new home.
It provides immediate cash flow for a new purchase, using your existing home as collateral before it sells.
The loan is meant to be paid off quickly, typically within six to twelve months, as soon as your current home sale closes.
A Real Estate Bridge Loan solves the stressful timing problem of needing to buy and move without a dependent offer.
Benefits of Bridge Loan Financing
Securing a Bridge Loan for Home Purchase offers a distinct competitive advantage in a fast-moving market. It transforms you into a non-contingent buyer, making your offer far more attractive to sellers. A Bridge Loan gives you breathing room to move confidently without financial disruption.
Settle Your New Home Sooner
Close on your next home purchase without waiting for the sale of your current property, eliminating a major timing risk.
Make a Non-Dependent Offer
Present an all-cash or non-dependent offer to sellers, dramatically increasing the likelihood of acceptance in competitive markets.
Avoid Temporary Housing
Move directly from your current house to your new one, avoiding the hassle and expense of renting or storage between closings.
Lock In Your Dream Home
Quickly secure a unique or highly sought-after property before it gets snapped up by other, non-dependent buyers.
Manage Two Mortgages
The loan can be structured to cover the payments on your existing mortgage for a set period, easing temporary financial strain.
Types of Bridge Loan Financing
The flexibility of Bridge Loan Financing allows us to tailor a solution to your specific buying and selling scenario. The best option depends on your financial profile and how much of the existing home equity you need to access. You can choose the loan structure that best supports your goals and liquidity strategy.
Bridge Loan with a "Payoff" :
Uses a new loan to pay off your existing mortgage, leaving you with one new mortgage payment.
Bridge Loan Without a "Payoff" :
It covers just the down payment and closing costs, so you temporarily handle both mortgages.
Combined Bridge-to-Permanent Loan :
A simplified loan that converts bridge financing into a permanent mortgage once your old home is sold
Bridge Loan for Investment Property :
It lets real estate investors access equity from one property to purchase another.
Short-Term Equity Access Bridge :
A quick loan that gives fast cash to cover short-term needs while waiting for a larger fund.
Bridge Loan Requirements
Due to the short-term and specialized nature of this product, Bridge Loan Requirements focus heavily on the equity in the existing home and the borrower's ability to carry both properties and service the bridge loan until the old home sells. We need confidence in the eventual sale.
Significant Home Equity
You must have substantial equity in your current home (often 20% to 40%) to serve as security for the new bridge loan amount.
Credit and DTI Standards
We require a strong credit score (often 680+) and a low debt-to-income (DTI) ratio to prove capacity to carry temporary debt.
Verifiable Sale Strategy
The existing property should be listed for sale, under contract, or have a clear, credible plan for a quick listing and sale.
Liquidity/Reserves
Depending on the structure, you may need to show enough liquid cash reserves to cover several months of payments.
Professional Appraisal
A recent professional appraisal of your current home is mandatory to establish the equity available to secure the new financing.
Existing Mortgage Status
Your current mortgage needs to be up to date, and you must be in good standing with your bridge loan lender.
How to Get a Bridge Loan with Rize Mortgage
Rize Mortgage specializes in sophisticated, short-term financing, offering a swift and transparent process to secure the optimal Bridge Loan terms. We prioritize speed and clarity, recognizing that timing is everything in your home purchase.
Consultation and Strategy :
Contact a Rize Mortgage advisor to review your timeline, equity, and purchase to find the right loan.
Preliminary Qualification :
We quickly assess your financial profile to give you a clear indication of your borrowing capacity.
Application and Documentation :
We order the appraisal and review your listing to confirm your equity and readiness to sell.
Final Underwriting and Approval :
Our team handles the final review, coordinating your bridge loan with the new mortgage.
Closing and Funding :
The Real Estate Bridge Loan funds quickly, giving you the cash you need to close to your new home.
Tips to Secure the Best Bridge Loan Rates
While a Bridge Loan is short-term, securing the best rate and terms is crucial for minimizing costs. Follow these steps to maximize your savings and streamline the application process with Rize Mortgage.
1
Maximize Your Equity
Make a small, final principal payment on your current home to reduce the loan-to-value (LTV) ratio.
2
Prepare All Documentation
Have your tax returns, bank statements, and current mortgage documents organized.
3
Obtain a Pre-Approval
Get pre-approved for your new mortgage to show us a clear plan to repay the bridge loan.
4
Shop Rates and Terms
Quickly compare options from various lenders to ensure you find the most competitive interest rate.
5
FAQ (Frequently Asked Questions)
How Do You Qualify for a Bridge Loan?
To qualify for a bridge loan, you generally need strong credit, steady income, and sufficient home equity. Lenders typically look for a credit score of 650 or higher, a low debt-to-income ratio, and at least 20% equity in your current home. You’ll also need to show a clear plan for repaying the loan, usually through the sale of your existing property or securing long-term financing.
How Long Does It Take to Get a Bridge Loan?
The bridge loan process typically takes 1 to 2 weeks, depending on the lender and documentation readiness. Because bridge loans are short-term and time-sensitive, many lenders fast-track the approval process. However, appraisal, underwriting, and title checks can affect timing. Having your financial paperwork organized and your current home listed can make the process smoother and quicker.
Where to Get a Bridge Loan?
Bridge loans are offered by banks, credit unions, mortgage lenders, and private lenders specializing in short-term real estate financing. Traditional banks often have stricter qualification criteria, while private or specialized mortgage lenders offer more flexible terms and faster closings. Comparing multiple offers helps you find the right balance between speed, cost, and convenience
What Are the Pros and Cons of a Bridge Loan?
Bridge loans offer speed and flexibility, but they come with higher costs and short repayment terms. Pros: Quick access to funds, no need to delay a home purchase, and the ability to buy before selling your current home. Cons: Higher interest rates, upfront fees, and the risk of carrying two mortgages if your existing home doesn’t sell quickly.
What Is a Bridge Loan Used For?
A bridge loan is used to “bridge” the financial gap between buying a new home and selling your current one. It allows homeowners to access their current home’s equity to fund the down payment on a new property without waiting for their existing home to sell. Bridge loans can also be used for business expansion, real estate investments, or short-term cash flow needs.
Ready to Bridge the Gap to Your New Home?
Don’t let the timing of your home sale limit your next purchase. A Bridge Loan offers a fast, secure, and smart solution.
