Bridge Financing: Buying Before You've Sold

Bridge financing is a short-term loan that covers the gap between closing on a new home and receiving the proceeds from selling your current one — common when the timing doesn't line up perfectly, which happens more often than buyers expect.

It's typically secured against the equity in your current home, based on a firm, signed sale agreement (not just a listing) — lenders want certainty that the funds to repay the bridge loan are actually coming.

Bridge loans usually carry a higher interest rate than a regular mortgage, reflecting their short-term, higher-risk nature, plus an administrative fee. They're meant to be repaid quickly, typically within days to a few months, once your sale actually closes.

Not every lender offers bridge financing, and approval isn't automatic just because you have a firm sale agreement — arrange this well before you need it, not as a last-minute scramble a week before your new home closes.