You found your next home before selling your current one
Avoid waiting for your existing home sale before moving forward with a purchase.
The Home Buying Advantage: Bridge Loans
A bridge loan gives you access to your home's equity before it sells, helping you move forward with confidence when timing matters most.
When Your Next Move Can't Wait
One of the biggest challenges homeowners face is timing. You may have significant equity in your current home, but that equity isn't available until your home sells. Meanwhile, the right property becomes available today.
A bridge loan may help bridge that gap by allowing you to access equity from your current home before it sells, giving you more flexibility when purchasing your next property.
Bridge Loan Highlights
FEES
Origination fee ranges from 1.00 to 1.75% of the loan amount. Additional closing costs, including appraisal, title, recording, and other third-party fees, apply. (1) (3)
TERM
Up to 12-month term with no prepayment penalty (1) (2) (3)
RATES
Competitive rates. Reach out to our team using the contact form below to inquire.
CLOSING TIMELINE
Typically 21-30 Days (4)
(1) Actual interest rate, origination fee, repayment terms, and APR will vary based on credit qualifications, borrower liquidity, property location, loan-to-value ratio, and closing timeframe.
(2) Payment structure varies by loan qualification with balloon payment due at the end. Depending on loan-to-value, borrowers may be required to make periodic payments during the loan term or may qualify for a deferred payment structure. Any unpaid interest will accumulate over the loan term. Final balloon payment due at the end of the term unless outstanding principal balance, accrued interest, and any other amounts are repaid before maturity.
(3) Annual Percentage Rate (APR) Representative Example: A $750,000 bridge loan with a 12-month term, 65% loan-to-value ratio, quarterly interest-only payments, a 8.375% interest rate, and 1.375% origination fee has an APR of 9.781%.
(4) Closing timeline subject to appraisal, title, underwriting, and other conditions.
Is a Bridge Loan Right For You
You want to make a strong offer
A bridge loan may allow you to submit an offer without a home sale contingency, depending on your circumstances.
You want to avoid moving twice
Purchase your next home before selling your current one and reduce the need for temporary housing.
You have significant home equity
Put your existing home equity to work while preserving liquidity and investment assets.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term loan that allows homeowners to leverage equity in their current home to purchase a new property before their existing home sells.
What is the advantage of a bridge loan?
With the ability to make offers that are less dependent on the timing of an existing home sale, borrowers may enjoy greater flexibility and increased negotiating leverage when finding a new home. For many qualified borrowers, this can also create greater flexibility in how they manage their overall financial resources by reducing the need to make immediate changes to their existing asset portfolio. Borrowers should consult their financial and tax advisors before making investment or tax-related decisions.
Can I buy before I sell?
In many cases, yes. A bridge loan may allow qualified borrowers to purchase a new home before selling their existing property.
Do I need a home sale contingency?
Not always. Depending on your situation, a bridge loan may help eliminate the need for a home sale contingency.
What makes Flatirons Home Lending different?
Competitive fees and a responsive, dedicated team committed to finding the right solution for you. Learn more about our team here.
What documents do you need for a bridge loan?
Underwriting documents typically include:
- Tax Returns: Previous 2 years: W2, 1099, K1, Income Statement
- Relevant Asset Statements: All pages of one monthly statement for all asset accounts, including stock, retirement, checking, savings and any other financial accounts.
- Current mortgage statement: if applicable
- All pages of current homeowners insurance policy
This is an example of documents commonly requested during the underwriting process. Depending on a borrower's individual situation and property being financed, additional documentation may be required to complete review of a borrower's application.
How do I get started?
Complete the form below and someone from the Flatirons Home Lending team will reach out to you.
Get Started
Take the next step in your home buying journey with a Bridge Loan designed to help you move forward with confidence. Contact our team to get started.
Bridge loans are short-term financing solutions. All loans are subject to credit approval, underwriting requirements, collateral evaluation, and program eligibility. This is for informational purposes only and does not qulify as a commitment to lend. Terms, rates, fees, and availability may change without notice. Not all applicants will qualify.
Rates and fees vary based on loan structure, borrower qualifications, property type, and market conditions. Contact Flatirons Home Lending for current pricing and complete program details.