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Bridge Loans at Bobadilla Home Loans

What is a Bridge Loan?

A bridge loan is a short-term loan that "bridges" the gap between buying your next home and selling your current one. It gives you access to the equity you’ve built up so you can move first and sell later without having to line up both closings on the same day.

Instead of scrambling to coordinate timing, a bridge loan lets you use a portion of your current home’s value as a down payment on your new home. Then, when your existing home sells, the bridge loan is paid off from the sale proceeds.

Bridge loans are typically:

  • Short-term (often 6–12 months)

  • Secured by the equity in your current home

  • Designed to be paid off once your existing home sells

  • Used mainly to cover the down payment and closing costs on your new home

Benefits

Why Choose a Bridge Loan?

Bridge loans are designed for homeowners who need flexibility, speed, and simplicity when transitioning from one home to the next.

Buy Before You Sell

Make an offer on your next home without waiting for your current home to sell. This can make your offer more competitive in a tight market.

Use Your Equity Sooner

Tap into the equity in your current home to cover your next down payment, closing costs, or moving expenses without taking on long-term debt.

Avoid Double Moves

Skip temporary housing or storage units. Move directly into your new home and sell your current home on a realistic, stress-reduced timeline.

Stronger Offers

Write non-contingent offers that don’t depend on your current home selling first—a major advantage in competitive neighborhoods.

Time to Prep & Stage

Move out first, then clean, repair, and stage your current home so it shows its best—and potentially sells for more.

Short-Term, Not Forever

Bridge loans are meant to be temporary—once your current home sells, the bridge loan is paid off and you continue with your new mortgage as usual.

Process

How Bridge Loans Work

Here’s the typical 4-step path a Summit Home Lending client takes when using a bridge loan to move into their next home.

Step 1

1Review Your Equity

We look at your current home’s value, your mortgage balance, and your goals to estimate how much you can safely use toward the next purchase.

Step 2

2Get Pre-Approved

We underwrite your bridge loan and your new mortgage together so you know exactly what you can afford before you start making offers.

Step 3

3Close on Your New Home

Your bridge loan provides the down payment and any agreed-upon costs. You move into your new home while your current home is listed for sale.

Step 4

4Sell & Pay Off the Bridge

When your previous home sells, part of the sale proceeds are used to pay off the bridge loan. You continue with just your new mortgage going forward.

Eligibility

Bridge Loan Requirements

Every situation is unique, but most Summit Home Lending bridge loans are based on the following general guidelines.

Minimum Equity

  • Sufficient equity in your current home
  • Typical combined loan-to-value limits apply
  • Final amount depends on appraisal and guidelines

Income & Debts

  • Stable, documentable income
  • Debt-to-income ratio within program limits
  • We may account for both mortgages during overlap

Credit Profile

  • Minimum credit score requirements
  • Stronger credit can improve pricing
  • Recent major credit events reviewed case by case

Plan to Sell

  • Clear intent to sell your current home
  • Reasonable timeline based on your market
  • Listing details if already on the market

Costs & Pricing

Breakdown of Bridge Loan Costs: Rates, Fees & Charges

Bridge loans are more specialized than traditional mortgages, so their pricing works a bit differently. Here’s how we explain it in plain English:

Interest Rate

Bridge loan rates are usually higher than a standard 30-year mortgage because the loan is short-term and specialized. Think of it as paying a convenience premium for flexibility and timing, not as a long-term cost you’ll carry for decades.

Because the loan is meant to be paid off when your home sells, we’ll walk you through the expected total interest cost over that short window—not just the rate.

Fees & Closing Costs

Just like a standard mortgage, a bridge loan can include lender fees, third-party charges (like appraisal and title), and recording fees. These are clearly itemized so you know what you’re paying for.

In many cases, these costs can be paid from loan proceeds or at closing so you’re not writing extra checks out of pocket during an already busy move.

Carrying Costs & Timing

For a short period, you may have your existing mortgage, your new mortgage, and your bridge loan all at once. We model this with you up front so there are no surprises.

The key question we help you answer is: “What will this move cost me in total over the few months I’m using the bridge loan?” Then you can weigh that cost against the benefits of moving on your own timeline.

Options

Alternatives to Bridge Loans

Bridge loans are powerful tools, but they’re not the only way to move from one home to the next. We’ll help you compare all the options side-by-side.

Home Equity Line of Credit (HELOC)

Best for: Homeowners who have time to set up a line of credit before shopping and want ongoing access to their equity, not just a one-time loan.

A HELOC is a revolving line secured by your current home. You can draw funds for your next down payment, then pay it back once your home sells.

Contingent Offer

Best for: Buyers in slower markets where sellers are more open to offers that depend on your current home selling first.

You make an offer on your next home that’s contingent on the sale of your existing home. This reduces financial overlap but can weaken your offer in hot markets.

Sell First, Then Rent or Store

Best for: Families who value maximum financial clarity, don’t mind a temporary move, and want funds in hand before buying again.

You sell your current home, move into a short-term rental or stay with family, then shop for your next place with cash in the bank and no overlap.

Cash-Out Refinance

Best for: Owners planning to stay longer before moving, who want to lock in a new long-term rate while taking cash out for the eventual purchase.

You replace your current mortgage with a larger one and receive cash at closing. Later, that cash can be used as a down payment on your next home.

Ready to See If a Bridge Loan Is Right for You?

Talk with a Summit Home Lending specialist about your timeline, equity, and local market. We’ll walk you through bridge loans, alternatives, and clear next steps—no pressure, no jargon.

You’ll get a personalized breakdown of options based on your actual numbers—not generic rules of thumb.

Bobadilla Home Loans

Bringing you expert mortgage solutions for a smarter, smoother path to homeownership. Let’s open doors together!

28200 Highway 189 F240 #17&18
,Lake Arrowhead, CA 92352
(909) 270-4647 [email protected]

Licensing & disclosures

Regulated by IDFPR – Residential Mortgage Banking
555 West Monroe St., Ste 500
Chicago, Illinois 60661
844-768-1713

For licensing information, go to www.nmlsconsumeraccess.org


Bobadilla Finance Team Home Loans, NMLS#820270/1660690

Corporate Address: 3100 West Ray Rd Ste 201 Office #209 Chandler, AZ 85226

For more information, NMLS Consumer Access Link: https://nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1660690

**NOTICE* - This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states

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