Bridge / Swing Loans
Short-Term Financing to Help You Buy Before You Sell
A bridge loan, also known as a swing loan, is a short-term financing solution that helps you transition between buying a new home and selling your current one. It provides temporary funds so you can move forward with a purchase without waiting for your existing property to sell.
This type of loan is ideal for homeowners who want to act quickly in a competitive market while avoiding the pressure of timing both transactions perfectly.
Connect the Gap Between Two Transactions
Bridge loans are designed to “bridge” the financial gap during a transition.
- Access equity from your current home
- Use funds for down payment or full purchase
- Avoid contingent offers when buying
- Short-term solution until your home sells
- Faster access to funds compared to traditional loans
Bridge Loan Overview
| Feature | Details |
|---|---|
| Loan Type | Short-term financing |
| Loan Term | Typically 6 to 12 months |
| Purpose | Buy new home before selling current one |
| Funding Source | Equity from existing property |
| Repayment | Paid off after home sale or refinance |
How Bridge Loans Work
Bridge loans provide temporary liquidity so you can secure your next home.
- Loan is secured by your current home
- Funds can be used for down payment or purchase
- You repay the loan once your existing home sells
- May be structured as a second lien or standalone loan
Common Use Scenarios
| Scenario | How Bridge Loan Helps |
|---|---|
| Buying before selling | Provides upfront funds |
| Competitive housing market | Strengthens your purchase offer |
| Delayed home sale | Covers timing gap |
| Upgrading to a new home | Unlocks equity for next purchase |
Who Should Consider Bridge or Swing Loans
This loan is a great fit for:
- Homeowners upgrading to a new property
- Buyers in competitive real estate markets
- Sellers needing flexibility in timing
- Borrowers with strong home equity
- Individuals relocating for work or lifestyle
Qualification Snapshot
| Requirement | Typical Standard |
|---|---|
| Home Equity | Required in current property |
| Credit Score | Typically 620+ |
| Income Verification | Required in most cases |
| Debt-to-Income | Must meet lender guidelines |
| Exit Strategy | Sale of current home |
Benefits of Bridge and Swing Loans
- Buy a new home without waiting to sell
- Reduce pressure during the moving process
- Make stronger, non-contingent offers
- Access home equity quickly
- Flexible short-term financing
Things to Consider
- Short-term loan with higher interest rates
- Requires clear plan to sell current home
- May involve carrying two loans temporarily
- Fees and terms vary by lender
How the Bridge Loan Process Works
| Step | What Happens |
|---|---|
| Equity Review | Evaluate current home value |
| Pre-Qualification | Determine borrowing capacity |
| Application | Submit loan request |
| Underwriting | Review financial profile and property |
| Approval | Loan decision issued |
| Funding | Access funds for new home purchase |
| Repayment | Pay off loan after home sale |
Secure Your Next Home While Your Current One Sells
AGet the flexibility you need to transition smoothly and move into your next property with confidence.