Bridge Loans: Buy Before You Sell Your Existing Home
Are you ready to move into a home that better fits your lifestyle but feeling stuck because you still need to sell your current one? You’re not alone, and that’s where bridge loans from Texas Lending Partners can help.
Why Consider a Bridge Loan?
In today’s competitive market, sellers often prefer offers that aren’t contingent on the buyer selling their current home first. That can make it tough if you need the equity from your current home to move forward.
A bridge loan solves this problem by giving you short-term financing to access your equity before your home sells. This allows you to confidently put in a strong, non-contingent offer on your next home, without the stress of juggling back-to-back closings or moving into temporary housing.
What a Bridge Loan Can Do for You:
Provide flexibility and extra time to sell your current home.
Help you act quickly when your dream home hits the market.
Strengthen your offer by removing the home-sale contingency.
How Bridge Loans Work
A bridge loan is a short-term loan secured by the equity in your current home. You repay it once your home sells, making it a flexible tool designed for life transitions.
At Texas Lending Partners, we offer two types of bridge loans:
Close with Confidence Bridge Loan
Perfect if you already have a buyer under contract for your current home.
Loan amounts up to $750K
Terms up to 3 months*
Minimum credit score: 680
Combined loan-to-value (CLTV) up to 80%
DTI not to exceed 50%
Departing home payment may be excluded from DTI (depending on status)
Debt-Inclusive Bridge Loan
Ideal if your home is listed but you don’t yet have a buyer.
Loan amounts up to $750K
Terms up to 4 months*
Minimum credit score: 680
Loan-to-value up to 70%
DTI up to 50%
All housing debts included in DTI
👉 No monthly payments are required on our bridge loans, but an interest-only payment is calculated for qualifying purposes.
Bridge Loan vs. Home Equity Loan vs. HELOC
It’s easy to confuse these products, but here’s the breakdown:
Home Equity Loan (HeLOAN): Fixed, lump sum. Best for renovations or debt consolidation.
HELOC: Revolving line of credit. Flexible but usually variable rates.
Bridge Loan: Short-term loan designed specifically to transition you into your next home while waiting for your current one to sell.
Things to Know Before Applying
Credit: Most programs require a minimum score of 680.
Costs: Expect origination and appraisal fees (often rolled into the loan).
Timeline: Designed for short-term use; repayment happens once your current home sells.
Pros & Cons
Pros:
Make a strong offer without a home-sale contingency.
Avoid the pressure of simultaneous closings.
Gain flexibility and peace of mind in your move.
Cons:
Higher interest rates than traditional loans.
Short-term repayment required.
May increase your debt load temporarily.
When Does a Bridge Loan Make Sense?
You’ve found your dream home but your current one hasn’t sold.
You’re relocating and need to secure housing quickly.
You want to avoid making a contingent offer in a competitive market.
Explore Your Options with Texas Lending Partners
Every homeowner’s situation is unique, which is why we take the time to explore all your financing options, whether it’s a Bridge Loan, HELOC, or a traditional mortgage.
At Texas Lending Partners, our mission is simple: to guide you with expert advice, transparent options, and flexible solutions that put you in the best position for your next move.
Ready to see if a bridge loan is right for you?
