What is a bridge loan?

A bridge loan is short-term financing that helps you access equity in your current home to buy your next one before selling.

How does it work?

It uses your current home’s equity to fund the down payment on your next purchase.

When is it useful?

When you want to buy before selling but need your equity to do it.

What are the costs?

Higher interest rates and fees compared to standard loans.

What are the risks?

If your current home does not sell quickly, you carry additional debt.

Are there alternatives?

Home equity lines of credit or selling first